In my previous post, I explained the difference between short term holiday rentals and long term rentals. Just a re-cap, a SHORT TERM / HOLIDAY RENTAL refers to renting a furnished property on a short term basis, considered as a period of less than 3 months.
- MORE FLEXIBILTY
For owners who rent their properties short term there is a lot more flexibility as you can specifically block off calendar dates that you want to keep free for your family and friends without inconveniencing anyone. This option works if you own a holiday home and is also great for investors who live interstate or overseas and use their property for recreation or for business.
- LESS WEAR AND TEAR
In general, short term rentals range in length from a few nights to a few weeks maximum so your property is always maintained in pristine condition. As guests are staying for short periods, there is less chance they will be thinking about redecorating or re-arranging furniture. With regular housekeeping services, your property is monitored frequently, and any maintenance issues can be attended to immediately.
- HIGHER RENTAL RETURN
There is superior rental return for the right property in the right location with a property management company specialising in accommodation. Fluctuating rates can be set over high and low seasons with set minimum stays. Peak periods ensure that you will receive maximum profits. In addition, seaside holiday homes can be subsidised with holiday rental income if the investor is seeking both a lifestyle and an investment.
- TAX BREAKS AND DEDUCTIONS
Many short term/holiday rental owners are entitled to certain tax breaks or even deductible expenses because the property is not being leased long term. There are tax advantages associated with depreciation on furniture packages, for example, however be sure to check with your accountant regarding the rules and regulations on this option.
- ADDITIONAL INCOME, SAVINGS AND CAPITAL VALUE BENEFITS
If you are away for a length of time such as on an overseas trip, you can receive extra income by offering your home as a short-term rental and having your property managed and maintained will provide you with peace of mind.
Refurbishment of your property can also mean that the presentation is contemporary and inviting, with the additional bonus of increasing the property’s capital value.
If moving overseas for a period of time, renting your property furnished will save on storage costs.
If you have purchased a new property and are unable to sell your current home, the option of receiving income from a short term rental can be appealing, while you wait for the property to be sold.
- CONTRIBUTION TO THE SHARING
This style of accommodation is becoming increasingly popular as it offers an alternative to a hotel or serviced apartments and it can be cost saving, accommodating more than one group of people.
You will attract different clientele by aiming at the executive relocation market and overseas visitors.
You will be contributing to the sharing economy which has an all-round benefit for the wider society by bolstering tourism and local cultural exchange as guests share in your community’s modern way of living and thinking.
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