18 Oct Short-term rentals are a growing real estate market
Short-term rental units are popping up everywhere and as the demand increases, it brings exciting new real estate investment opportunities for landlords and real estate developers. Residential apartment complexes are being sought out for the purpose of turning the properties into short-term rental units. In this recent news story, Airbnb has teamed with real estate developer, Niido, to turn 14 apartment buildings into home sharing units.
A short-term rental property typically rents out for 30 days or less and has the potential of bringing in greater returns than a traditional long-term rental. The demand has grown in recent years as travelers look for convenient lodging while on vacation. Many would prefer the comfort of an apartment setting versus a hotel stay. Other types of popular short-term vacation rentals include mountain chalets, log cabins or studio apartments. All these types of dwellings have the potential to become investment income properties.
A short-term rental investment property is a great way to get started in real estate investments or it can help diversify your investments if you already have rental properties. As an added bonus, new tax laws may allow you to deduct your mortgage interest on a short-term rental property and deduct as much as 20 percent of your net rental income when you file your taxes.
Short-term rentals are a hot commodity in real estate. Just look at the success of Airbnb. The company was founded in 2008 and has 4 million listings worldwide. Travelers know they can find short-term rental opportunities for the destination of their choice. The location of the property is the key to success in short-term rental investments. Look for locations which attract tourists or in locations that frequently host business conferences.
These are just a few reasons to consider short-term rentals when developing a real estate investment strategy. Barsh & Cohen can handle the legal transaction process when you find your next big investment property. Contact us here to schedule a consultation.