Maybe you've thought about getting into real estate investment personally and are intrigued by the concept of being a rental property owner.
With homeownership rates at their lowest in 50 years, now could be an excellent time to investigate that possibility, especially when there are several reputable vacation rental management services available.
Why is investing in rental property a great option?
Since 2004, the national homeownership rate has fallen by 9%. Numerous variables might explain this significant move away from homeownership. Home prices have grown faster than salaries, making prices unaffordable for many. Furthermore, younger Americans value the freedom that renting provides and prefer to postpone life commitments that may precede purchasing a house, such as marriage or establishing a kid.
As a result, millennials are remaining in the rental market well into their twenties and thirties. Renters among the baby boomer age have surged by 4.3 million in the last 10 years. All of this adds up to a thriving rental industry in the United States. For many Americans, renting is a better alternative than purchasing.
What are the benefits of owning a rental property?
Better Security
Some people must relocate temporarily for work. Others inherit a family house that they do not want to sell since it holds personal significance for them. People may find themselves with a vacant property for a multitude of reasons. An unoccupied property may be vulnerable to vandalism and squatters, as well as overlooked upkeep concerns that can swiftly snowball into greater difficulties. It's difficult to keep an eye on a house you don't live in all the time. Renting out the house to renters might provide you with greater peace of mind knowing the home is being cared for and maintained.
Better Value Appreciation
Renting out your house today permits you to keep it in case it appreciates, providing you the option to sell when the time comes. The degree of appreciation will differ depending on the market. Study the appreciation potential of various cities and communities to see what you might be able to expect.
Sell When You Want To
Suppose you're ready to relocate but the market conditions aren't ideal. Rather than putting your property up at a loss, consider renting it out until market conditions rebound. Renting out your house provides you the option of selling it when you're in a stronger place to earn a profit.
A Place To Come Back To
Owing to monetary or other constraints, you may discover yourself unable to remain in your existing dwelling. If you need to relocate temporarily for a job, it's comforting to know you'll still have a place to live when you return. You'll want to verify your state and local housing rules, as well as the terms of any present leases.
Passive Income
The fact that it is a passive income source is perhaps the most significant advantage of owning rental property. This means it is regular revenue that takes minimal work to sustain. It might be an appealing choice for folks wishing to supplement their income or even provide additional financial protection during retirement. Rental income may also be taxed differently than job income.
Should you entrust your rentals to vacation rental management?
As a vacation rental homeowner, the decision of whether or not to engage a property manager or property management business is critical. There are several obligations and duties associated with owning a short-term rental property, and hiring a professional can assist in simplifying your day-to-day operations — which may be consuming the much-needed time for other endeavors. You're effectively contracting out the management of your holiday rentals.
Most of all, you should vet the vacation rental management service you're going to hand over your operations to. If you're looking to diversify outside of Airbnb rental management, other services can help you achieve the same goals. Services like Bongo Stays are one such fantastic option. Bongo Stays can help your business thrive and commit to keeping your rental property in top shape — no matter what circumstance or even through high turnarounds — and keeps your guests in a happy and content 5-star mood.