In some geographic areas, shorter-term rentals may be more lucrative than traditional annual or multi-year leases. These properties are typically fully furnished, including bedroom sets, living room furniture, recreation areas, and fully stocked bathrooms and kitchens (non-perishables).
Daily & Weekly Rentals
These types of “residential” leases are typically available as vacation stays in areas with high tourism traffic.
Monthly Rentals
Can range from one month to 11 months and are fully furnished. Examples of common monthly rentals include:
Executive Housing
These types of rentals are popular with corporate groups needing to house an executive who is leading a short-term project or relocating. The executive (and possibly their family) stays for one to six months while they complete their assignment or find permanent housing.
Flexible Apartment Leases
Some apartment complexes offer lease terms shorter than the standard twelve months. Typically six to eleven months long, these types of leases can be perfect for families in transition, for example, a family that is having a home built and needs a place to live during the construction period.
Students
College Students who maintain a primary residence with parents or elsewhere benefit from flexible leases that allow them to rent properties only during active school semesters
Traveling Nurses
Typically take on three to nine-month assignments and are either provided housing as part of their contract or are given a housing stipend.
Before investing in a property to offer as a short-term rental, conduct your due diligence. While some communities fully embrace vacation rentals and Airbnb/VRBO properties, others do not. Make sure short-term rentals are legally allowed and that there are no pending ordinances looking to prohibit short-term rentals.
Remember that vacation-type rental properties have multiple levels of investment and management. You must fully furnish and decorate the property. Either you or your property management team must handle check-ins and check-out, cancellations, refunds, and fast repairs, as well as cleaning and sanitizing between occupants. The profits for short-term rentals can be attractive. Just be mindful that they can involve more work.
