Short-Term Rentals – 3 Positive Revenue Changes You Can See

Perhaps you own a few rental homes or a small apartment complex, and you have normally rented or leased those units to long-term tenants. Making the decision to transition to short-term rentals for travelers can be a huge decision to make, and you are bound to see a lot of changes. One of the biggest changes you will see is with your revenue stream from your rental properties. Here is a look at some of the positive changes you can expect to see as a property owner of an Airbnb property.

Expect your profit margin to grow substantially.

You can logically charge more for short-term rentals than you do for long-term leases. You are catering to specific types of visitors who do not intend to be around for very long, so they are more willing to pay a higher amount to get the comforts of home.

Enjoy the elimination of expenses for collections.

As a property owner who rents units to long-term tenants, collecting rental payments from month to month can be a real challenge. You may end up having to deal with tenants that do not pay what they owe for months and eventually have accounts that go into collections. All this comes at a cost for you as the property owner. With short-term rentals, you are bringing in tenants who pay for their stay in advance, so you do not have to contend with things like late payments, missed payments, and collections that affect your profit margin.

See your profit margin become more predictable.

Since short-term rentals tend to stay in high demand because travel is such a consistent activity whether for business or pleasure, transitioning to a short-term rental can mean you see more predictability with future profits. Knowing how predictable your profits will be for the long term makes it easier to plan for investments and expenses.

Allow Professionals to Make the Transition Easy 

Making the decision to trade in your traditional rental business for something totally different can be a big change for sure. Make sure you have professionals on your side to help you with property management as you move forward with your plans. We are a full-service Airbnb property management company in Scottsdale, AZ. Call us at (602) 492-4121, or contact us through our website.

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Short-Term Rentals vs Hotels: A Look at the Advantages for Travelers

As the owner of an apartment complex or group of rental properties, you may have always chosen to rent only to long-term tenants. However, there could be another way for you to use your rental property to make an attractive profit. By operating your properties as short-term rentals to travelers, you are providing a valuable place for them to stay that can be far more attractive than a hotel. Take a look at why a short-term rental or Airbnb property can be more attractive to travelers than the average hotel stay.

Affordability

Without question, one of the top advantages for travelers staying in short-term rentals is the fact that they are more affordable. You can spend several hundred dollars per night on a hotel room, and this cost can quickly add up to a massive bill if you plan to stay for anything longer than a few days or need multiple rooms. A short-term rental is usually a more financially logical decision because guests can have access to a full kitchen to cook in or multiple rooms for the family to stay in.

Home-Like Environment

A traditional rental offers a traveler a lot of attractive features that they just can’t get at most hotels, such as:

  • A fully outfitted kitchen for cooking or reheating food from restaurants
  • A laundry area so less luggage is needed for the trip
  • Private bedrooms
  • More than one bathroom

When a traveler is staying away from home for longer than a few days, all of these accommodations can be super important and cost-effective. For example, they can cook full meals in a fully functional kitchen instead of relying on just a microwave and a coffee pot. Having a washer and dryer in-unit is also a way for families and corporate travelers to travel with ease because extra clothes will not be needed to last for their entire stay. If families are traveling together, having multiple bedrooms is crucial so they can have privacy and everyone can stay comfortably.

Location

When staying in a hotel for several days or a few weeks as a traveler, you can be immersed right in the most tourist-saturated areas of the city. On the contrary, short-term vacation rentals are located in safer neighborhoods that provide more security and are better suited for families. Hotels are often crowded and have many common areas that draw large groups of people. Vacation homes allow travelers private time with their friends or family which is why most decide to take a vacation in the first place!

Find Out More About Rental Property Management in Phoenix, AZ

Transitioning your property from a long-term rental to a short-term vacation rental can sound overwhelming. However, with the help of a good rental property management company, the transition and management do not have to be a challenge. Our team manages all aspects of the process to take the burden off of the property owner and ensure that full attention is given to the guests.

If you would like your property evaluated for its short-term rental or Airbnb potential, reach out to us at Sojourn Properties LLC and we can provide you with a free report.

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