Short-Term Rentals – 3 Positive Revenue Changes You Can See
Perhaps you own a few rental homes or a small apartment complex, and you have normally rented or leased those units to long-term tenants. Making the decision to transition to short-term rentals for travelers can be a huge decision to make, and you are bound to see a lot of changes. One of the biggest changes you will see is with your revenue stream from your rental properties. Here is a look at some of the positive changes you can expect to see as a property owner of an Airbnb property.
Expect your profit margin to grow substantially.
You can logically charge more for short-term rentals than you do for long-term leases. You are catering to specific types of visitors who do not intend to be around for very long, so they are more willing to pay a higher amount to get the comforts of home.
Enjoy the elimination of expenses for collections.
As a property owner who rents units to long-term tenants, collecting rental payments from month to month can be a real challenge. You may end up having to deal with tenants that do not pay what they owe for months and eventually have accounts that go into collections. All this comes at a cost for you as the property owner. With short-term rentals, you are bringing in tenants who pay for their stay in advance, so you do not have to contend with things like late payments, missed payments, and collections that affect your profit margin.
See your profit margin become more predictable.
Since short-term rentals tend to stay in high demand because travel is such a consistent activity whether for business or pleasure, transitioning to a short-term rental can mean you see more predictability with future profits. Knowing how predictable your profits will be for the long term makes it easier to plan for investments and expenses.
Allow Professionals to Make the Transition Easy
Making the decision to trade in your traditional rental business for something totally different can be a big change for sure. Make sure you have professionals on your side to help you with property management as you move forward with your plans. We are a full-service Airbnb property management company in Scottsdale, AZ. Call us at (602) 492-4121, or contact us through our website.
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