Should You Sell or Rent Your Home?
Every homeowner eventually arrives at an important financial crossroad: should they list their home as a rental or sell it? In our experience, it’s usually more beneficial to use your property as a long-term investment asset. Luxury short-term rentals, in particular, have excellent earning potential for long-term passive income.
To leverage your assets, using a rental property management company and interior design service is highly recommended. Property managers and professional designers will streamline the rental and marketing process to take the stress off your plate, and ultimately increase your revenue through higher occupancy and nightly rates. If you’re undecided about renting or selling, here are some questions to ask yourself.
What Is Your Property’s Potential?
Every property has its strengths and weaknesses. There are also limitations to certain locations and property types. Therefore, it’s vital to approach your decision to rent on a case-by-case basis. If you decide to rent your property, make sure to get a quality consultation to learn the value of your home. Remember, it is possible to increase a property’s value by investing in its looks, function, and marketing.
Overall, a high-value, short-term rental will have higher occupancy and a higher nightly rate than properties in average condition located in less desirable areas. Think of a vacation rental property in hotspot tourist zones, beach houses, family neighborhoods, large metro areas, and cozy cabins in popular resort areas as the kinds of places with the most earning potential.
A more desirable property will naturally increase your occupancy and increase your nightly and monthly rate. When vacationers browse short-term rental listings, they desire something exceptional. Designing your property with professional vacation rental interior design is a reliable way to increase revenue through more interest and marketability.
What Condition Is Your Property In?
If you have a property that can be improved with some modest investment, then it makes sense financially to turn it into a rental. The cost of fixing the place will eventually be recouped by your short-term rental income. However, if you have a property that will cost more to fix than you could ever recoup through projected rental profits, then it’s better to sell through a reputable real estate brokerage, such as our partners at OpenAiRE. The lump sum that you get from the sale can then go to a more desirable rental property.
What Are Your Financial Goals?
If your goal is to grow wealth for life, then having an active stream of income through short-term rentals should be part of your plan. A vacation rental property in a desirable area with luxury amenities brings in increased profits in a market where rental prices are on an upward trend. On the other hand, a one-time sale is finite.
If you want a higher income potential, short-term rentals can bring in even more money than long-term rentals. While long-term renting can bring you $2,000 a month, a short-term rental can generate double that value. If you want a lifelong stream of income beyond retirement, then the financial security of a short-term rental can be part of a solid income plan.
How Much Time Do You Have to Manage Your Properties?
Sometimes homeowners feel reluctant to rent their homes because of the many responsibilities they will acquire. They don’t want to be on-call for repairs or have to be responsible for collecting rent and doing paperwork. But managing your rental property doesn’t have to be an inconvenience; property management companies can take on all these responsibilities so that landlords can simply relax. If you own several properties, then hiring a property manager to handle multiple needs is essential.
Full-service vacation home managers take the guesswork out of everything, by:
- Providing 24/7 communication and support to your guests.
- Scheduling repairs and managing both security systems and remote entry systems.
- Drafting rental documents and making sure every legal base is covered before your guests enjoy your property.
- Collecting rent and keeping a close eye on your property when you’re not staying in the home.
To maximize your profits, high-end property management companies will also use hospitality-focused interior designers and effective marketing strategies. They know where to list your property and how to attract the most attention. After they stage your rental and make it a dream destination, they’ll answer client questions and arrange all short-term leases.
In summary, there are multiple angles to consider when deciding to rent or sell your property. At Open Air Homes, we are happy to provide a free consultation on your home’s value and help you determine the best route forward. Contact our team today to receive a consultation and learn more about our Effortless Ownership property management system.