Question 1

Annual lease or short term rental?

Accepted Answer

With today's generation of travelers and the advent of Airbnb, short term rentals are significantly more profitable than a conventional long term lease.  The average nightly rental rate for a property across the U.S. is $160/night.  This means that if you had a modest size 2-bedroom home that typically rented for $1200/month with an annual lease, you could actually make nearly that amount with a one-week booking.

Question 2

Why would anybody want my property for vacation?

Accepted Answer

Short term rentals are not just for those seeking a vacation near a beach!  In fact, there are 9 categories of short term rental seekers:
 
1. Vacationers - Those looking for a getaway.
2. Corporate - Business travel for meetings/work.
3. Medical - Proximity to a health care facility for self or family.
4. Academic - Going to school or visiting somebody there.
5. Entertainment - Points of historical interest or exciting locations.
6. Military - Housing between deployments.
7. Emergency - Disaster relief displacement.
8. Life Events - Family reunions, graduations, birthdays or other.
9. Relocation - Moving to a new location prior to having a home.
 
Airbnb currently has over 150 million users.
 
Over 1 million new users are being added each year.

Question 3

What about the "wear and tear" on my property?"

Accepted Answer

Short term rentals have significantly less wear than long term rentals.  This is mainly because of two reasons:
 
1.  Type of use - Long term renters are at your property in a semi-permanent status.  They eat, sleep, cook, relax, entertain, etc.  All of this puts heavy use on your property and the associated appliances.  But short term rentals are typically using the property similar to a hotel.  They need a place to sleep, and maybe eat, while they are staying in town for their desired purpose.  They are tyipcally only in the property for a few hours of sleep and the time it takes to get ready.
 
2.  Turnaround - With a long term rental, you rarely see the property during the term of the lease.  You have no idea what condition it is in, and typically there is significant repair or upkeep needed at the conclusion of the lease.  With short term rentals, you, or your designee, will get to view the condition of the property every week or two, and be able to keep it in top condition.  You can stay ahead of any wear and tear.

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