The definition of a short-term rental property can vary, but typically a short-term rental property, or vacation rental, is a residential property made available for rent for a period of under 30 days.  Short term rentals are usually rented out by travelers seeking an alternative to traditional hotels. 

Short-term rental properties have many advantages to long-term rental properties.  The main advantages to short term rentals are:

1. Higher rental income potential – The per day rent for short-term rental property can be several times higher than it is compared to a long-term rental. Short term rental property owners can take advantage of periods of high demand and adjust their prices accordingly.
2. Less commitment – If you don’t like your renters, you aren’t stuck with them for long periods of time.
3. More flexibility – If you want to use your vacation rental for your own use, you can just block off the days. If you need to sell your property for any reason, it’s much easier to do so with short term renters, than it is with long-term renters who signed a lease.
4. Less Wear and Tear – It may seem counterintuitive, but short-term rental properties often experience less wear and tear than long-term rental properties do. Short-term rentals are occupied less frequently than long-term rental properties which are occupied almost every day. It is also much easier to inspect the condition of your property and perform routine maintenance.  With long-term rentals deferred maintenance can often lead to expensive issues.
5. Legal Reasons – In general, long-term tenants have substantially more legal rights than short-term renters. Problematic short-term renters can be locked out or evicted whereas you would need to go through a much longer eviction process through the court for long-term tenants.  Owners and their managers also generally have the right to perform inspections without giving notice.

Short-term rentals have many advantages but they also have their share of disadvantages

1. Time commitment – Because you are dealing with more renters and shorter turnover rates, there is much more time and effort involved with responding to inquiries, coordinating check-ins and check-outs, and dealing with guest communication and issues. More time is spent on cleaning, restocking, and managing guest turnovers.
2. Uncertain income and occupancy challenges – If you aren’t experienced with managing short-term rentals and you aren’t employing effective marketing and optimal pricing strategies, your profitability could suffer. A lack of knowledge or experience could result in lower occupancy rates or renting your property for way less than it’s worth when demand is high.
3. Major repairs can shut your rental down – There are a lot of things that can potentially go wrong when renting out property. Things will inevitably break and need to be repaired as soon as possible.  Unlike with long-term rentals, if something essential like the air conditioner or water heater breaks in a short-term rental, you won’t be able to rent the place out until it gets fixed.  In a long-term rental, your tenants are still paying you as long as you make the necessary repairs in a reasonable amount of time.  In order to minimize your rental downtime and repair costs, you will need to have a reliable network of local service providers at your disposal that you trust to get the job done as quickly as possible, while minimizing your costs. 
4. Lower profitability from bad reviews – Guests most commonly seek short-term rental accommodations from online marketplaces like Airbnb and Vrbo. These platforms allow guests to leave reviews about your property that everyone can see.  If you don’t live up to your guests’ expectations and provide a satisfactory experience they could leave a bad review, which could damage the reputation of your property and result in lower occupancy.  Having a clear and accurate listing, responding to guests in a prompt and friendly manner, and having a well-maintained property will help you get positive reviews which will lead to higher occupancy rates.

Investors primarily buy rental real estate for the rental income, tax benefits, and potential for long-term appreciation, not to become full-time property managers themselves.  Managing short-term rental property by yourself can be difficult and time consuming.  Most property owners simply don’t have the time, knowledge, or resources required to efficiently manage short-term rental property.  A property management company can save you time by eliminating the day-to-day tasks required while allowing you to focus on other aspects of your life or business.  Not only this, but a professional management company will often save owners money in the long run by optimizing pricing, reducing vacancies, and minimizing maintenance cost.

No, although Airbnb is one of the best platforms out there for short-term rentals, we believe listing your short-term rental on multiple channels is the best way to gain the most exposure and maximize your occupancy rate.  Some of the other platforms we use besides Airbnb are VRBO, Booking.com, TripAdvisor, and Expedia.  Each platform has its own strengths and limitations, with some working better than others depending on your specific needs and preferences.  We can help you figure out which platforms make the most sense for you.