Owning property is one of the most common and safest investments you can make. For generations, people have used their money to buy land and buildings as this is frequently a smart way to protect, build and pass wealth. You may be considering investing in real estate for the purpose of renting it on a short-term basis. This can be a lucrative approach to real estate investment, but there are several important things you must first understand before you move forward with this process.
Airbnb and other property rental platforms provide the opportunity for many property owners to generate income from simply renting to those who need a place to stay on a short-term basis. These types of rentals are popular for those going on vacation, traveling for business or visiting a specific place for a short period of time. Short-term rentals can seem like a simple and straightforward investment strategy, but it is not the right choice for everyone.
Things to know before you start
There are important things to consider before you purchase property with the intent of using it as a short-term rental. You will not always have as much control over who is renting your property, and you may find it difficult to deal with tenants who do not treat your property with respect and care. Other important things to note about investing in short-term rental property include:
- You will have to pay for utilities, repairs to the property and taxes, even when there is no one renting the property.
- You will need to furnish the property, making the home look appealing in your listing photos.
- You may not have consistent bookings, especially in the beginning or during times of the year when there are fewer people traveling.
- Your income from renting the property may be sporadic and irregular, depending on bookings and upkeep costs.
There are also important legal factors to consider, such as zoning laws and other possible restrictions you could face. You will benefit from knowing all of the legal options available to you, as well as how Pennsylvania laws may impact the success of your plans. With preparation and the right expectations, you can protect your interests as you consider the benefits of short-term rental ownership.