HomeAway or Airbnb. Short term rental.
Hi All - I always wonder. Which one is better in terms of profit, putting house in Short-term and vacation rental or traditional long term tenant? I know there are few factors involved (if property is leveraged, maintenance etc etc) but in general if property is close to 1/2 a block from Lake (not a direct access), in Austin. Which route is better? I can do both.
any feedback greatly appreciated.
Most Popular Reply
Hi @Sal Zafar. In my opinion you are always going to be safer and easier from a long term rental business model. It's easier to gauge rental rates, pro forma's and vacancy losses. You may get higher rent per night on the short term rental but you are also paying for everything including cable, internet, water, electricity, etc. etc. Probably the only good part about STR's is you don't really have to worry about eviction type situations that much (although I have read some STR horror stories on that as well, but nothing like a long term).
Now, that being said, I'm all about STR/Vacation Rentals because they are more fun and you get other fringe benefits from them (like the ability to use them). And there is no reason you cannot do both, so start it as an STR while the economy is hot and then if the local VR rental market shifts you can always slide it into a long term if you needed to.
Good luck to you on whatever path you choose!
Cheers!
~Jon