Whether you are a long-term landlord or a short-term holiday rental provider, the success of your rental business depends on several factors. Here are a few: Location, Seasonality, Profit margins, and Downsides. Before renting your property, carefully review the agreement and ask yourself: Are you a good fit for the job? Read short term rentals Aberdeen to find out! Also, check the contract for any additional clauses you may have missed.
Seasonality
One crucial factor to consider is seasonality when choosing a vacation rental. If you buy a house in the middle of summer and do not expect to book it until late fall, you will face a long wait before it becomes available. You will likely get bookings immediately if you purchase a home on the Cape in late winter or early spring. However, if you buy during a quieter time of year, there are chances you will have immediate summer bookings.
Some advantages to renting out your holiday property in low seasons are lower rates. The low season is generally winter, which is when rates are lowest. Moreover, short-term rental property owners offer special deals during these months to attract more customers. You may also find some bargains in restaurants and other amenities during these months. These seasons are also suitable for travelers as they are affordable. But, it would help if you remembered that seasonality varies from region to region, so it’s best to take a close look at the market before deciding.
Downsides
Running a short-term rental is a lucrative opportunity, but it has downsides. Owners are required to stay available at all times for their guests. When listing on Airbnb, you get a large number of emails. Failure to respond promptly to these emails can affect your listing’s visibility and rating. In addition, constant cleaning is required. It is also necessary to change bed linen and towels frequently. Unless you have the time and money to do all this yourself, you can hire a cleaning service. However, make sure you charge them an appropriate amount for this service.
One downside of short-term rentals is the higher vacancy rate than long-term rentals. It is also more vulnerable to seasonal vacancies and renter cancellations. In addition, there can be excess competition and market saturation. A recent example of how a short-term rental business has been affected by a natural disaster is the COVID-19 pandemic. The virus wiped out a large portion of holiday rental owners.
