Here's What You Should Know Before Investing in Short-Term Rentals
Here's What You Should Know Before Investing in Short-Term Rentals
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Jun 14,2022

Here's What You Should Know Before Investing in Short-Term Rentals

If you are looking for a lucrative business opportunity with a significant return on investment, you should try short-term rentals. As we get back to normal after the pandemic, short-term rentals are taking off, and 3 Options Realty can help you kickstart your venture the right way. This vastly-growing and highly profitable industry has a surge of investors, making it one of the future sectors to look out for. Like any industry, you need to know what is required of you as an investor and the risks involved. Some of these risks include:

Financial Challenges

Financial institutions consider rental properties higher risk, especially if the property is not just for personal use. This makes it challenging to qualify for a mortgage, deterring your efforts to turn it into a rental property. Mortgage lenders offer varying down payment rates on property not occupied by the owner, which can take a considerable chunk of your finances. Such issues can be avoided by hiring a property manager to help you make sound financial decisions.

Higher Upfront Costs

Short-term renters are usually families on vacation, looking for a cost-effective alternative to the pricy hotels. Whether it's business people looking for a home-like experience, or vacationers looking for a more local experience, you need to furnish and decorate your rentals to create a warm feeling. It would help if you equipped your home with appliances that make a home-away-from-home feel, such as kitchen basics, furniture, and curtains. Many property management companies help prospective investors prepare their spaces before renting them out, guaranteeing a high move-in rate.

No Guaranteed Income

Unlike long-term rental properties, rental rates in a short-term lease are higher, so you must be ready for vacancies throughout the year. The peak season should not be a problem, but the low vacation season presents a challenge in finding enough tenants. It is advisable to lower your rent during the low season; to attract tenants looking for cheap rentals. This can be an excellent strategy to reduce vacancies and costly repairs.

More Work

Short-term rentals have a frequent turnover of renters, requiring you to put more effort into maintenance. If you have a lot on your plate, managing short-term renters cannot be easy, and that's where 3 Options Realty comes in as your go-to property management company in Milton, GA. We offer quality administration services, and our experts are always available to meet and address any needs the renters have.

More Upkeep

Guests are constantly moving in and out, requiring a lot of upkeep to deal with broken and used things. We work with professionals to ensure your rentals are thoroughly clean and everything used up is replaced. We can also provide screening services since vacationers are rarely screened, alleviating the risk of renting out to bad tenants. All these can be overwhelming, so you need to consider working with a reputable property management company.

Although short-term rentals add diversity to your investment and offer a good source of income, make sure you review all the risks involved before acquiring a property. Contact us at 3 Options Realty for more information, and schedule an appointment with our representative.ions Realty for more information, and schedule an appointment with our representative.

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If you have been rummaging through web results for “property management companies near me,” then you are at the right place. 3 Options Realty’s property managers in Atlanta are experienced and trained to deliver top-tier service. Call 3 Options Realty to speak with a friendly representative today to learn more about our property management & real estate services. We are ready to take your call.

Buy, Sell & Rent with 3 Options Realty

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We use professional market research to determine fair-market rent, and we use broad market advertising to reach a large audience. Our agents will also help you prepare your property and skillfully present your property. Prospective tenants will undergo comprehensive interviews and background screening before we negotiate with them the rental agreement using our proprietary, attorney-reviewed forms.