Advantages and disadvantages of short-term rentals

The short-term rental industry has exploded in recent years because of platforms like Airbnb and VRBO (Vacation Rentals by Owner). If you’re thinking of getting into this market and renting your residential space, there are a few things to consider. Here’s an overview of the pros and cons to give you some insight.

The upsides
Short-term rentals can be a substantial source of passive income that requires relatively little effort. The initial investment is often negligible. Therefore, you’ll quickly see profits with minimal risk. This income is also flexible since you have the freedom to rent when it suits you best.

The downsides
You must put in a substantial amount of effort to make your visitors happy and have a successful enterprise. Consequently, expect several expenses, from maintenance and repairs to legal obligations and insurance coverage.

Moreover, short-term rentals are increasingly singled out as an aggravating factor in the housing crisis occurring across the country. Therefore, be aware that your new source of income could provoke disapproval among residents in the area, especially if you live in a small community.