Property is one of the smartest investments you can make if you have some money lying around. You can rent out storage space, rent out a room or two, and even spruce it up for resale.
However, there are a variety of aspects to consider before you start making money with vacation rentals. Even though a short-term rental is perfectly legal, there are many laws and regulations to keep in mind. You may also want short-term rental management to help monitor the property.
Here are three things to know before you start making some rental income.
1. Laws and Regulations
The first thing you should always do before pursuing a new business venture is to assess the laws and regulations in your area.
In the past, you could utilize something like Airbnb to rent out a room without needing to get a permit or any kind of authorization. Now, many areas require you to register your home as a short-term rental unit to do so.
Late last year, the Tennessee Supreme Court stated that HOA restrictions could not keep a property owner from renting out their home on a short-term basis However, there must be a minimum lease term of 30 days.
2. Costs and Expenses
Even though renting out your property is a great way to make some passive income, it also comes with its own set of costs and expenses.
For example, you'll still need to pay taxes, utilities, and landscaping for a property that isn't currently rented out. This is especially common when dealing with short-term rentals as opposed to year-long leases.
You may also want to make upgrades or renovations to your property so it appeals more to tourists. Some common changes include updating your artwork, plants, and accent pieces.
Unless you're working with a trending property, you'll also want to invest in marketing. Otherwise, you may struggle to find new tenants even during the holiday season.
3. Short-Term Rental Management
You won't always have a short-term rental in the same city you're staying. In that case, you'll want a rental manager who can handle things on your behalf.
Short-term rental management can handle all the tasks ranging from marketing to scheduling maintenance. They can find new tenants and accept payments. If a renter pursues legal action, your management company can also help you dispute the claim.
If you're not sure which rental platform to utilize, consider one that offers tenant screening, guest support, and even professional-quality photography for staging.
Get Help With Your Vacation Rentals
You shouldn't have to handle your short-term rentals on your own. With short-term rental management services, you always have someone in your corner who can take over when you need to focus on other investments.
PMI Bluff City utilizes state-of-the-art technology to help manage your short-term rentals in Memphis and surrounding communities. We can list your vacation rentals on our platform as well as arrange your marketing and accounting.
Reach out today with any questions you may have about our capabilities and we'll get back to you as soon as possible.
