You may have been toying with the idea of renting out a room, an above-garage apartment or even a house for short-term rental for some time. At first, you may not have had the space to carry out such a venture, but perhaps you recently acquired new property. Now, your short-term rental venture may seem like something closer to the realm of possibility.
Often, Pennsylvania residents are interested in a short-term rental because it can allow them to gain a relatively passive income stream. Of course, that does not mean that holding this type of rental property is totally hands off. In fact, you will likely have to spend time and money on your rental space to ensure that it remains accommodating and up to safety and health standards.
Pros and cons
As you delve more into the idea of renting out your available space, you may want to keep the upsides and downsides in mind. Seeing both sides of the situation may help you better determine whether this type of endeavor is right for you. Some positive aspects to short-term rentals include:
- Charging more per night rather than on a monthly basis
- Fluctuating the price per night more frequently, such as raising it on weekends or holiday dates and lowering it for less popular times of the week or year
- Having the ability to use the property for personal reasons if desired without having to worry about long-term tenants
- Having the ability to take the property off the rental market for a time if you do not want to rent it for any reason
- Possibly claiming tax deductions
However, like with most scenarios, downsides to short-term rentals also exist, such as:
- Not having much control over whom you rent to
- Dealing with a fluctuating income, meaning you may see significant income during popular travel times but not see much income at other times of the year
- Having to put more time into ensuring that the property is properly cleaned after every tenant’s stay
- Needing to respond to questions about the property and booking inquiries from possible tenants
- Tenants cancelling last minute and possibly leaving you without the income you anticipated
For some, the idea of having to put almost full-time effort into maintaining and managing a short-term rental property may not be what they are looking for. However, if you understand and accept this part of the arrangement, moving forward with your rental may prove beneficial to you. Of course, it is necessary to understand the legal implications of operating such rental property, so gaining information from local legal resources may also be helpful.