Short-term rental properties were once avoided by most investors and homeowners. It seemed like too much work and a lot of risk. Things have changed, and at Trend Property & Management, we’ve actually been quite successful helping people manage their short-term rental properties and the tenants who occupy them.
Sites like Airbnb and Vrbo and HomeAway offer short-term Fort Worth tenants and visitors a chance to book stays from just a few days to several months.
While this can be an excellent income-producing business model for many homeowners, there are a lot of costs associated with short-term tenants. Before you decide to turn your rental property into a vacation property, think about what that means for your maintenance costs, the work required between turnovers, and the potential for vacancy.
Furnishing a Short-Term Fort Worth Rental Property
One expense that long-term rental property owners don’t have to worry about is furniture. You’ll need to furnish your property for short-term renters, and this means more than just a sofa and a bed. Those short-term renters you’re attracting won’t be showing up with their own cookware and linens. They won’t be moving in their own creature comforts.
A short-term rental will require beds in every bedroom, comfortable sofas and chairs in the common areas, and a dining set in the kitchen, dining room, or both. You’ll also need patio furniture and all the essentials such as pots and pans, plates and silverware, and towels.
Short term tenants will expect Wi-Fi and cable television. You’ll also have to keep the utilities turned on and in your name. This is an extra expense, and in Fort Worth, you can expect the air conditioner to run all the time. Short-term renters aren’t going to minimize their shower time in an effort to keep water bills down. You have to budget for these expenses.
Short Term Cleaning and Maintenance Costs
You will have to clean your property between every tenant. Short-term renters will expect to arrive at a property that is hotel-clean. This isn’t much of an inconvenience if your renters are staying in place for months at a time, but it can be expensive when you have new guests in your property every week.
As the COVID pandemic seems likely to stick around for a little bit longer, cleaning is even more essential. Invest in a highly qualified, professional cleaning crew that can give your property the detail and care that it needs when it’s being cleaned before new tenants.
There will also be maintenance costs.
All rental homes need repairs from time to time, but with a short term rental, your tenants are going to have a little more wear and tear. They know it’s a temporary place to stay, and they won’t care as much about the property as long-term tenants who think of it as their home.
Short Term Rental Property Vacancies
The largest cost is often vacancy. While you’ll likely be able to charge more per-night with a short term property, you’re still going to make more with long-term tenants. You won’t have someone in your property all the time when you market it to short-term renters. All those periods of vacancies means you’re not earning any income at all. During travel restrictions like the recent pandemic, you could find yourself going months without a short-term tenant.
We think short-term rentals can work very well for many property owners in Fort Worth. You simply have to be prepared for the costs associated with these temporary homes. Working with a professional Fort Worth property management company can also help you keep your costs down. We’re efficient and we already have our cleaners and maintenance vendors ready to go.
If you have any questions about how to rent out a short term property with cost efficiency in mind, please contact us at Trend Property & Management.