Quote:
Originally Posted by Villager2be
1. Does one of these models make for a better short term rental place, i.e. does one typically provide a better return on investment?
2. Is there decent enough demand in the March through December period or does supply greatly outweigh demand? Is it realistic to think we should be able to break even?
3. Do you get a good return on the added purchase cost of a 3rd bedroom, or most short term renters don't need the 3rd bedroom, i.e. 3/2s rent for similar $ as 2/2s?
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We are going into our third year as Villagers. We are "snowflakes", meaning we go back and forth throughout the year but we do rent out our place during certain months like Feb-March where you get top dollar compared to the other months. That alone covers around 75% of our annual costs.
1. Designers are by far the most popular for non-short term rentals, like renting a month or two at a time. Also, I would highly recommend against offering short term rentals that are under a month. You will not make that much money due to fees going to AirBnb/****, plus your neighbors will all despise you. Personally, we value our neighbors and don't want them to feel like they live next door to a hotel. You get a VERY different type of renter from AirBnb vs sites like Rent from a Villager.
2. The easiest to rent are Feb/March. April and May you can get some interest if you're priced right and have a nicely furnished place. June-Nov is a crapshoot in getting any renters at all.
3. A 3 bedroom you're getting slightly higher rent but probably not enough to say the 3 bedroom is more "profitable", although the higher the price, you're generally getting a more desirable renter than someone that's trying to rent at a bargain basement price.
I would also caution against using a management company. Many charge 25-30% or more and you're at the mercy of them finding renters for you, some try less hard than others. Some try to rent your place without you knowing so that they can pocket 100% of the rent. I belong to a Villages Landlord group, and almost every anecdote I get from talking to other landlords that have used management companies in the past is very bad.