While not the typical investment that comes to mind, the benefits of the short-term rental property sector of the market merit further investigation. Investors are wise to continually educate themselves on market news, keeping their business riding on top of the wave of real estate investing, with an eye towards the future.
Societal changes created more desirability for the unique features of short-term rentals brings a result, this transformation has come to the attention of investors.
We’ll explore five things you should know about investing in Providence short-term rental property.
The growth of technology within real estate and consumers who are savvy in using online apps, making it easy to find a property that suits their needs for their visit perfectly, has combined to create a growing trend in Providence short-term rental property. The industry is multiplying as vacationers and visitors of today have come to expect a more private and home-like atmosphere than noisy hotels packed full of guests. Moreover, guests appreciate the special touches that make the stay more personal, often becoming return visitors.
Fewer Turnover Costs
Due to the nature of more desirable times of year in Providence short-term rental property, or even more desirable days, like weekends, the general wear and tear effects are lessened by fewer actual occupied days. Turnover costs can be expensive and time-consuming on more long-term rentals, creating a more extended downtime with a vacant unit. Prepping for new tenants typically includes deep cleaning and painting. However, the work required often goes beyond repainting; tenants can add a great deal of wear to a unit in a year that they’ve settled into over a more extended period.
While occupied for a lower actual number of days, the rental rate for a Providence short-term rental property is much higher per day and more than makes up for the difference in days occupied. In addition, landlords can adjust rates for holidays and other high-demand days on the calendar. You can also require minimum stays, which ensures your bottom line, even if the occupants don’t need the unit for that length of time. As a bonus, you can block off a limited number of prime days per year for yourself, being sure to follow the tax guidelines for vacation investment properties.
Risk management is as important as due diligence when you set out to plan your real estate investment strategy. By spreading your investments across many areas of real estate, you build a safety net to protect your income. As an emerging sector in Providence, short-term rental properties offer a fantastic opportunity for diversifying your real estate portfolio. The potential tenants for these properties are as diverse as the properties themselves. In addition, there is a wide range of price points among properties suitable for short-term rentals, making it an excellent way for new investors to get started.
Owning Providence short-term rental property is attractive because it offers the benefits of tax deductions for operating expenses. So naturally, costs for maintaining and refurbishing an investment property are also deductible. Be sure that you keep excellent records and receipts in an orderly fashion. Hiring a property manager and owning your investment business as an LLC carries significant advantages. As always, you have to play by the rules of the tax guidelines, but the work is well worth the effort to improve your income for your rental property.
The pros at The Reservoir Group are ready to help you with your Providence short-term rental property needs. The Reservoir Group has properties available and offers management services; we make investing easy. Contact The Reservoir Group today at 401-741-1800.