Short-term Vacation rental means a residential unit or any portion of a residential unit that the owner of the record or the lessee of the residential unit offers for occupancy for fewer than 30 consecutive days.
A property that is rented anywhere between one evening up to one month is often considered a short-term vacation rental. In contrast, a property rented for one month or longer is usually considered a long-term vacation rental. They’re an alternative to a hotel and are sometimes referred to as vacation rentals.
Short-Term Vacation rentals are related to Airbnb or “Air Bed and Breakfast” it is a service that lets property owners rent out their spaces to travelers looking for a place to stay. They can rent a space for multiple people, private rooms, or for themselves. If you have a condominium unit, turning it into a short term vacation rental property is one good way to boost your income through real estate. Read this article for your guide.
How to Turn Your Condo Into a Short Term Vacation Rental Property?
Here’s your guide in the planning process of making your condominium a rental property.
1. Set up yourself as a Business
It means you are prepared with the business; who is residing in the property and Property name is literally the basic setting. You represent your business and yourself as the business. It is the legal step that you actually have a business by turning your condo into a short-term vacation rental and has already prepared the necessary steps in converting your property.
2. You are legal of age for the business
This means you can legally do or perform the following considerations: rent out your unit, considering the rental regulations in your city, renting taxes, Landlord Agreement, the homeowners Association restrictions, and other by-laws.
3. Identify if your Property or condo unit is suitable for vacation rental
Ensure that your property or condo is rentable or your location is listed as one for short-term rentals.
Learn the rules and regulations implemented in your location about your unit condo turning it into a short-term vacation. A different location requires different regulations; make sure you learn the laws before entering into this kind of business.
4. Where to Advertise and Look for Clients
Choose where you wanted to post your property some popular sites are Airbnb, Booking.com, VRBO, Trip Advisor, Expedia, HometoGo, Tripping, and Homestay.
5. Understanding Your HOA covenants
Homeowners Association or HOA makes and enforces rules for a subdivision, planned community, or condominium building; its members are the residents. You have to understand their provision about short-term rentals, rules, and their justified concern about the risks that come with your short-term rental tenants who are strangers to the community. Make sure to ratify with both ends a proper agreement.
The Short Term Vacation Rental Implementation
1. Getting your Home Prepared for your clients.
• Inside-out Appearance includes the inside property is clean and greener landscape, remember that all well and maintain beautiful and clean spaces brings back guests repeatedly.
• Keep systematic records, instructions about your property, key instructions, and welcome books for your guests.
• Amenities and Equipment inside your Condo property are working properly. Make sure that all the equipment is safe and that safety equipment such as smoke detectors and fire extinguishers are all working in order.
• Make sure to put clean linens, bathrooms are stocked with clean towels, soap dispensers are full, available trash cans, and other extra needs for your
guest preferences if needed as an agreement.
2. Apply for Rental Permits
• Ask also if acquire Landlord Insurance is needed for the current homeowner’s policy and the kind of rental situation you are planning.
• If Condo’s short-term Rental Permit is required acquire one and follow procedures as well.
3. Choose your Guests Properly
One of the best practices is to screen your renters properly to be able to prevent or minimize future problems. Some basic screening is Identification Card, physical address, and how many are adults or children
4. Provide Good Customer Service
5. Keep your Maintenance up to date
6. Payments and Agreements
Final thing to do is the secure a deposit and have that Rental Agreement signed. Make sure to have them sign the written rental agreement and security deposit.
Your Guide in Enlisting Your Rental Property Online:
Take a high-Quality Photo of your Condo Property. Impression gives a huge impact on clients if the photos are quality captured.
Disseminate and list your property, it must be concise and clear, and everything that you offered is listed in the description. Specify well how many rooms, timeframe, accommodation, and amenities.
3. Rental Agreement
In the draft agreement the following must be indicated: rental fee and the schedule of the visit and duration, your specific rules and restrictions for your property, the liability and fine of any damages, deposits, and also the rules apply to the location of your Condo unit. You can ask a lawyer how to draft an agreement between you and your renter.
What are the advantages of converting your condo to a short-term vacation rental?
1. They are Popular
These types of properties are on-demand or popular with holiday-goers, business travelers, and those who want a staycation
Every decision is up to the owner, you can always adapt the rates depending on the year, and also you can always block the date if you will use your property.
3. Potential Income
Aside from the owner can set rates on their own demand, the short-term rental can be a gainful income since it can be rented two (2) to five (5) times in a short period.
4. Social Benefits
Social benefits are the value of meeting new people and potential repeated renters.
Short Term Vacation rentals are an amazing way to start making money in real estate. This is an opportunity to invest in affordable houses and lot, condominiums, or rent-to-own condominiums, a good option investment for our Overseas Filipino Workers for their hard-earned money. Short Term Vacation rentals can provide a steady cash flow due to repeated renters and the high demand in tourism right now. Its impact on the Real Estate market is a hit business.
People wanted that unwinding staycation away from home even for a short period of time. People wanted that kind of time-out serene for recharging for the next bountiful work ahead of us. Short-term vacation rentals give us the opportunity to properly integrate ourselves and time while enjoying a home-away pause to breath and break, and to energize ourselves so that we will have that new bounce back performing our responsibilities to our work, family, and to ourselves.
Start with Bria Homes for your affordable condominium choice and convert your properties into short vacation rental and grab that privilege and opportunities to earn and enjoy the perks of it demands. Let that short term vacation rental be your long term financial opportunity!
Written by Rowena Lansang