Frequently Asked Questions 

 

How much time and work does the short-term rental process take?

Setting up and managing a short-term rental isn’t something you can do overnight, it takes a lot of time to get started. Rushing will cause problems that may result on costing you more time and money spent. We are here to help you get set your property set up properly! We will assist with any regulations that might apply to your property. And of course our team will be there to serve you in creating a great rental listing that stands out from all other competition. 

I have had a property for sale for awhile, can I change it to a Short Term Rental? 

Hard to sell spaces can make for excellent rental opportunities. We call them a diamond in the rough! 

Certain homes may be hard to sell or vacant because they are:

  • Listed at a high price point

  • Arranged with an awkward layout

  • Non-traditional homes (one-bed, one-bath arrangements)

  • Private and secluded

  • Too unique (old schoolhouse, train caboose, etc.) 

  • An additional dwelling unit on someone’s property (a carriage house, for example) 

While these circumstances may pose problems for a long-term lease scenario, they are often not issues for a rental arrangement. In some cases, these hard to sell characteristics can make an short term rentals truly great (and profitable)! 

Why should I consider a short term rental

There are many benefits for property owners with short term rentals here are a few: 

  • Increased flexibility. Short term rentals are an alternative way to make rental income and it doesn’t require relinquishing a space for an entire lease term. There is flexible availability for minor maintenance and corporate stays - ultimately, more control over the condition of the space. 

  • Portfolio diversification. Having a percentage of units as STRs is a great way to vary income streams.

  • Less overall wear and tear. Travelers do not use water or appliances as heavily in STRs as tenants do in long-term rentals. Appliances and the overall appearance of units can stay nicer for longer. The guest tends to be on very good behavior because they want their profile to be attractive to future hosts.

  • Professionally cleaned. Some units can be cleaned as often as 4-5 times a week. This kind of care is rare with long-term rentals.

  • Pet free. While allowing pets in STRs can boost revenue, having a no-pet policy will not affect the owner’s bottom line as much as it can in a long-term rental.

  • Automatic rental payments. No more chasing down monthly rents. Reservations are only secured when payment is confirmed.

  • No turnover expenses. Landlords often have to factor in the cost of turning over a space for a long-term rental. This includes anything from repainting to money lost from the time it takes to find a new qualified renter. With STRs, traffic is consistent.

  • Less worrying about evictions. It’s incredibly rare for a guest to refuse to leave a property. 

Do I have to declare the income on my tax return?

Yes.  If you rent out your home or second home for more than 14 days a month, you’ll pay taxes on the rent you receive.  You’ll also be eligible for certain deductions, so keep careful records and check with your tax preparer.

Why Should I Get a Short-Term Rental Insurance Policy?

Short-term rental insurance is often cheaper than commercial or landlord property insurance and specifically tailored to cover short-term rental needs. A homeowner’s policy rarely provides full coverage, meaning additional protection is necessary. Few things can feel as disheartening as renting to earn a bit of money, then have to spend it on getting your belongings repaired or replaced. It becomes the first line of defense for the guest, which results in the first line of defense for the property.

Do I need a business license to operate a short-term rental

Depending on the short-term rental location, class, business licensing fees, renewal fees and necessary consultations/approvals vary.

I’m thinking of operating a short-term rental unit in a condominium. Do I need the condominium board’s approval before applying for a license?