CSQ Properties expanded its reach to another asset class called Short-term Rentals.
We partnered with KOR Capital Fund to create a Short-Term Rental Fund located in the country’s #1 Tier One Rental market in Florida.
Short-term Rental is a hot commodity especially now that we are in the post-pandemic. Countries and States are beginning to open their gates again to welcome tourists and travellers.
This makes short-term rental an incredibly popular investment option.
But what makes Short-term Rentals such a great investment?
Short-term Rentals are also called Vacation Rentals. They are accommodations that travellers and tourists can rent on a short-term basis ranging from one night to a couple of months.
These accommodations range from high-end luxury properties to spare bedrooms in other people’s apartments and can include homes, condos, villas, apartments, tents, yurts and boats.
Some short-term rentals offer full service like that of the hotels, while others offer guests complete independence.
A long-term rental is designed for tenants rather than short-term guests.
This means that it is expected that the property to be occupied for at least 6 months, 12 months, or even many years. An example of this are the multifamily apartments and single-family homes.
Short-term rentals, on the other hand, are properties intended for short-term stays. They are marketed as holiday accommodations for the weekend or a week.
So, what is Short-Term Rental Investing?
Short-term rental investing is a strategy in real estate investing that focuses on properties that serve as vacation homes. Airbnb and VRBO are examples of Applications that help manage short-term rental properties.
Could investing in Short-term rental properties be a better investment for real estate investors looking to generate more income and grow their business faster?
Short-term rental properties can be quite rewarding if they’re managed properly. This makes them an extremely popular investment opportunity.
These are some of the reasons you may be interested in investing in a short-term rental property:
Higher Income And More Frequent Price Adjustments
Short-term rental properties are billed on a nightly basis, and owners can charge a higher nightly rates compared to long-term rental properties, which are typically billed to tenants on a monthly basis.
Short-term rental properties are often found in tourist or business destinations and the inherent flexibility in the terms is why they fetch higher prices than long-term rental properties.
Short-term rental properties offer the ability to adjust the price of rent more often than long-term rentals.
Owners can change the price of rent between occupants as they see fit. If there is a higher demand for rental during a particular season, owners can raise rent and produce more income.
This can’t be done with long-term rental properties since tenants sign leases that last for at least a year in most cases.
Short-term rentals are also more versatile than long-term rentals, allowing owners to make personal use of their vacation rental property and rent it out to others when it is not in use.
When a property is listed on the short-term rental market, it is much easier for the owner to block off the dates they would like to use the property, especially during the off-season.
Short-term rentals are a lot easier to maintain, as the owner won’t experience as much wear and tear.
Guests only stay for a few days and do not use the space as much as a long-term tenant would. The appliances will be used less, and tenants won’t be hanging pictures on walls, etc.
Short term rentals are cleaned and prepared for new occupants more regularly, which translated to better-maintained properties.
This helps to prevent any long-term damage to the property. If any maintenance problems arise, a short-term rental owner has easier access to the property without disturbing tenants.
OVERALL, Short-term rentals offer opportunity, profitability, and security for investors.
The unique asset class offers higher cash flow at relatively affordable pricing in growing markets throughout the U.S.
-Chad and The CSQ Properties Team