Before you start a short-term rental business, there are certain things you need to consider. When you plan to run one of these businesses for a while, or even just as a side job initially, it will be essential to know all the ins and outs involved with starting this kind of company. To start with, keep your property free from neighborhood noise complaints with this guide. In addition, this article aims to give some insights into what’s involved when running one of these businesses.
From getting your place ready to rent it out, here is a list of considerations that might help you before embarking upon this endeavor.
You’ll Want to Read the Lease Agreement If You Rent Out Your Home
Before committing yourself to turn your home into a short-term rental property, it would be wise, as well as courteous, to read your lease agreement. When you rent a home, it is usually for a set number of years. If the lease agreement says that no one can live in a home without the landlord’s proper written consent, you will have to adhere to this policy.
This could potentially be problematic if you want to turn your home into a short-term rental because that might mean getting permission from both sets of landlords; the current tenants and the owner of the property. You will probably not get their approval unless they are compensated by some means or another. So keep this in mind before jumping headlong into starting up on any rentals business, plus having someone outline all tenant’s rights.
You’ll Need to Get the Home Ready
You will need to make sure that your home is in good condition before renting it out. This means making sure all the appliances are in working order, there are no bugs or rodents, and everything is clean and tidy. People are attracted to specific amenities when looking for places to stay while on vacation or business trips which is why you’ll want your home to meet their basic needs. You can sometimes get around this by offering cleaning services, but if you’re not confident with doing it yourself, then hire professionals for this job instead.
You’ll Have to Maintain a Good Online Presence
The internet has become so widely spread that most businesses have some online presence, whether they like it or not these days. That being said, when you’re trying to run a short-term rental business, it will be necessary for you to have an online presence as well. You’ll want your website and all social media accounts such as your Facebook, Twitter, and Google+ pages looking nice and having good content.
You Might Have to Pay Extra Taxes with a Short Term Rental Business
If you run a short-term rental business in certain areas, you may have to pay extra taxes. This is usually if your house or building is located in a city or town where the rent prices go through the roof. In these cases, the local government might add tax for landlords who own short-term rental properties. This could be anywhere from over 5% up to 15% of what you’re getting paid by your tenants per year, if not more.
So, always check with your local authorities beforehand when thinking about starting any home-based businesses.