{"id":66020,"date":"2017-12-10T12:41:42","date_gmt":"2017-12-10T17:41:42","guid":{"rendered":"https:\/\/www.zilculator.com\/blog\/?p=66020"},"modified":"2021-04-20T03:52:32","modified_gmt":"2021-04-20T08:52:32","slug":"why-short-term-rentals-arent-a-sustainable-investment","status":"publish","type":"post","link":"https:\/\/www.zilculator.com\/blog\/why-short-term-rentals-arent-a-sustainable-investment\/","title":{"rendered":"Why Short-Term Rentals Aren\u2019t a Sustainable Investment"},"content":{"rendered":"<p>When Airbnb took off, homeowners around the world began offering up their vacant spaces to temporary tenants in hope of <a href=\"https:\/\/www.zilculator.com\/blog\/how-to-make-money-from-cheap-houses\/\">making some extra cash<\/a>. Since then, many competing companies have sprouted up with a similar platform, but plenty of individuals have strayed away from them as well, offering their vacancies through traditional advertising means. But, no matter how you\u2019re getting the word out about your s<a href=\"https:\/\/www.zilculator.com\/blog\/how-to-make-100000-a-year-with-rentals\/\">hort-term rental<\/a>, you should be considering some of the following aspects and re-think the importance your short-term rentals are going to play in your long-term investment strategy.<\/p>\n<p><strong>Related: <a href=\"https:\/\/www.zilculator.com\/blog\/optimal-holding-period-calculation\/\">Optimal Holding period calculation<\/a><\/strong><\/p>\n<div id=\"toc_container\" class=\"toc_white no_bullets\"><p class=\"toc_title\">Contents<\/p><ul class=\"toc_list\"><li><a href=\"#Considerations_for_the_Long-Term\"><span class=\"toc_number toc_depth_1\">1<\/span> Considerations for the Long-Term<\/a><\/li><li><a href=\"#Why_Long-Term_Rentals_Are_Better\"><span class=\"toc_number toc_depth_1\">2<\/span> Why Long-Term Rentals Are Better<\/a><\/li><li><a href=\"#Short-Term_Rental_Fees\"><span class=\"toc_number toc_depth_1\">3<\/span> Short-Term Rental Fees<\/a><\/li><\/ul><\/div>\n<h3><span id=\"Considerations_for_the_Long-Term\"><strong>Considerations for the Long-Term<\/strong><\/span><\/h3>\n<p>If you\u2019re currently offering up short-term rental arrangements or if you\u2019re considering jumping on board to this hot trend, make sure you think it through first:<\/p>\n<ol>\n<li><strong>Short-term rentals are dependent on travelers<\/strong>: The high rates of these rentals are justified only by their location\/ease of flexible booking options and they are marketed towards tourists. Natural disasters, terrorism, and plenty of other economic changes could quickly stop travel plans in their tracks\u2014meaning you\u2019re going to suffer. After all, a vacation is an amenity, not a necessity, and any investment that depends on \u201cwants\u201d (travel plans) over \u201cneeds\u201d (stable living arrangements) could falter.<\/li>\n<li><strong>Short-term rentals cost too much: <\/strong>The artificially high rates these rentals charge are often values two to three times higher than long-term rental rates. Locals simply can\u2019t justify that cost, and it can have a negative impact on the local economy. If you depend on this artificial, inflated income, you\u2019ll find yourself in hot water when it stops coming in.<\/li>\n<li><strong>Short-term rentals have too much competition. <\/strong>Airbnb was super exciting when it was first launched because it opened the doors for <em>everyone <\/em>to be a landlord. Despite plenty of horror stories, the few success stories that continue making their rounds online still has hundreds of people joining the platform each month\u2014and that means even more competition to contend with.<\/li>\n<\/ol>\n<h3><span id=\"Why_Long-Term_Rentals_Are_Better\"><strong>Why Long-Term Rentals Are Better<\/strong><\/span><\/h3>\n<p>It\u2019s a fact. If you have a place to rent, you should be looking to locate a tenant that\u2019s willing to sign a 6- or 12-month lease at a reasonable rate. <a href=\"https:\/\/www.zilculator.com\/blog\/7-surefire-ways-to-fail-as-a-real-estate-investor\/\">Investors<\/a> who keep tenants month after month and year after year earn more in the long-run and save on screening, cleanup, marketing, and turnover costs. These hidden fees are actually what put many short-term rental landlords in the negative once they look over all the expenditures that come along with renting out a space for a night or even maybe a week at a time.<\/p>\n<!-- WP QUADS Content Ad Plugin v. 2.0.17 -->\n<div class=\"quads-location quads-ad2\" id=\"quads-ad2\" style=\"float:none;margin:0px;\">\n\n <!-- WP QUADS - Quick AdSense Reloaded v.2.0.17 Content AdSense async --> \n\n\n<script type=\"text\/javascript\" >\nvar quads_screen_width = document.body.clientWidth;\nif ( quads_screen_width >= 1140 ) {document.write('<ins class=\"adsbygoogle\" style=\"display:inline-block;width:550px;height:90px;\" data-ad-client=\"pub-3164542121802998\" data-ad-slot=\"4497930067\" ><\/ins>');\r\n            (adsbygoogle = window.adsbygoogle || []).push({});\r\n            }if ( quads_screen_width >= 1024  && quads_screen_width < 1140 ) {document.write('<ins class=\"adsbygoogle\" style=\"display:inline-block;width:550px;height:90px;\" data-ad-client=\"pub-3164542121802998\" data-ad-slot=\"4497930067\" ><\/ins>');\r\n            (adsbygoogle = window.adsbygoogle || []).push({});\r\n            }if ( quads_screen_width >= 768  && quads_screen_width < 1024 ) {document.write('<ins class=\"adsbygoogle\" style=\"display:inline-block;width:550px;height:90px;\" data-ad-client=\"pub-3164542121802998\" data-ad-slot=\"4497930067\" ><\/ins>');\r\n            (adsbygoogle = window.adsbygoogle || []).push({});\r\n            }if ( quads_screen_width < 768 ) {document.write('<ins class=\"adsbygoogle\" style=\"display:inline-block;width:550px;height:90px;\" data-ad-client=\"pub-3164542121802998\" data-ad-slot=\"4497930067\" ><\/ins>');\r\n            (adsbygoogle = window.adsbygoogle || []).push({});\r\n            }\n<\/script>\n\n <!-- end WP QUADS --> \n\n\n<\/div>\n\n<h3><span id=\"Short-Term_Rental_Fees\"><strong>Short-Term Rental Fees<\/strong><\/span><\/h3>\n<p>The up-front costs include setting up a guest space and putting in the necessary security cameras, alarm systems, and a door lock\/pin system that will allow your guests to temporarily access your home. Lacking any one of these things leaves you open to thieves, hijackers, and house crashers.<\/p>\n<p>Even with the setup out of the way, many other things still need to be considered, and certain fees will be recurring after each and every visitor\u2014like cleaning up the area and sanitizing as necessary. You\u2019ll also need to consider stocking drinks\/snacks and other necessities and amenities for your guest.<\/p>\n<p><strong>Related: <a href=\"https:\/\/www.zilculator.com\/blog\/the-secret-to-real-estate-success-keep-it-simple\/\">The Secret To Real Estate Success: Keep It Simple<\/a><\/strong><\/p>\n<p>In the end, long-term rentals are much more worth the investment. In addition to taking less legwork, they\u2019ll also give you more peace of mind and a sustainable income strategy for the long-term.<\/p>\n<p>Do you agree or disagree? What is your favorite <a href=\"https:\/\/www.zilculator.com\/blog\/commercial-investing-4-strategies-to-succeed\/\"><strong>real estate investment strategy<\/strong><\/a>? Comment bellow!\n","protected":false},"excerpt":{"rendered":"<p>When Airbnb took off, homeowners around the world began offering up their vacant spaces to temporary tenants in hope of making some extra cash. Since then, many competing companies have&#8230;<\/p>\n","protected":false},"author":1,"featured_media":69021,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[158],"tags":[155,156],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v15.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why Short-Term Rentals Aren\u2019t a Sustainable Investment | Zilculator: Real Estate Investment Analysis blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.zilculator.com\/blog\/why-short-term-rentals-arent-a-sustainable-investment\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Short-Term Rentals Aren\u2019t a Sustainable Investment | Zilculator: Real Estate Investment Analysis blog\" \/>\n<meta property=\"og:description\" content=\"When Airbnb took off, homeowners around the world began offering up their vacant spaces to temporary tenants in hope of making some extra cash. 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