🔻Cons of Short-Term Rentals
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🔻The Income Is Unpredictable:
While you could make a lot more money renting your property short-term, this is only an assumption. Ultimately, the number of bookings you’ll get can never be guaranteed, which makes predicting how much you’ll earn every month difficult. If you’re mortgage-free, it could be a great option, but if you’re relying on the income to pay off the mortgage and all the other property-related costs, renting long-term might be more appropriate.
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🔻Higher Management Fees and Taxes:
While earning potentials with short-term rentals can be appealing in specific cases, renting your property short-term will inevitably lead to higher management fees. Indeed, vacation rental management fees are typically 300-400% higher than management fees for long-term rentals! And this can quickly impact your profits.
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What’s more, short-term rentals are subject to higher taxes, including the Transient Accommodations Tax, which, at the time of writing, represents an additional 10.25% and can often go up.
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🔻More Wear And Tear
Having a high volume of guests constantly checking in and out of your property will naturally lead to more wear and tear than a long-term tenancy.
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Besides, short-term guests only live on your property for a short period. That’s why some might not take the same care of your property as a long-term tenant would.
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