Short-term rental investing is one of the best ways to generate passive income and build a real estate portfolio that creates generational wealth for you and your family.
However, getting started with short-term rentals is where most new investors come across some challenges.
Continue reading to find out how making money from a short-term rental can be done with just a few simple tips and tricks.
5 Ways to Make Money from a Short-Term Rental
Investing in short-term rentals can be lucrative–even for investors who are new to the space. Here are six of the most common ways to make money from short-term rental investing:
Nightly Rental Income
The primary way to make money from short-term rentals is through rental income. By listing your property on platforms like Airbnb, Vrbo, or Booking.com, you can charge a higher nightly rate compared to traditional long-term rentals.
The key here is to ensure your property is well-maintained, beautifully decorated, and equipped with necessary amenities to attract guests.
Peak Season Premiums
Depending on your location, certain times of the year might be considered peak seasons. During these times, you can charge premium rates due to high demand.
For instance, if your property is near a tourist destination, major events, or holidays, you can adjust your rates accordingly and increase your income.
Short-Term Corporate Housing
Many business travelers prefer the comfort of a home over a hotel room. Position your property as a short-term corporate housing option to attract professionals who are traveling for work.
Corporate housing rentals often come with longer stays, offering a consistent source of income for investors.
Property Management Services
If you have multiple short-term rental properties, you can offer property management services to other owners. This can include managing reservations, guest communication, cleaning, and maintenance.
Charging a percentage of the rental income or a fixed fee for these services can create an additional stream of income.
Additional Services and Upsells
You can offer additional services to your guests for a fee. These could include airport pickup, grocery delivery, cleaning services during their stay, or guided tours of the area.
Upselling services can improve the guest experience and boost your earning potential as a new investor.
Real Estate Appreciation
In addition to generating rental income, short-term rental properties can appreciate in value over time.
Purchasing properties in areas with strong real estate growth potential can help facilitate this appreciation. This allows you to make money not only from the rental income but also from the property’s increased value if you decide to sell your property.
New homebuyers should study real estate market trends and identify neighborhoods with strong potential for property value appreciation.
Making money from a short-term rental property can be your ticket to passive income and financial freedom.
With a proper business plan and financing strategy, you can get your short-term rental business off the ground in no time.
Are you looking for a real estate agent in Massapequa? The Kim Holland Homes team is the #1 real estate team on Long Island. Contact us or call Kim today at 516-236-6303 to start the process of finding your dream home.