Online platforms, such as the Short Term Rentals Toronto, have established themselves quite well in the real estate industry. The real estate industry isn’t just about short-term rental homes. With the industry’s rapid growth rate, houses rented for a short period of time are also gaining popularity. If your passion lies in real estate and you’d like to invest in this fast-growing ecosystem, then you should probably consider short-term rental apartments. Bad credit? Don’t worry, you can get a mortgage even if you have bad credit.
Below are some of the reasons why:
The short-term rental market is growing quite rapidly
This is all thanks to the increasing rate of travelers. People travel for so many reasons – for work, vacations, or perhaps just touring the world. All sorts of travelers are becoming comfortable with the idea of having a home away from home experience – something hotels can’t really provide. Also, the fact that they can actually stay for just a short period of time is another intriguing aspect that distinguishes this investment from other real estate projects, such as long-term rentals.
Another thing that attracts travelers to such rentals is they can actually get more privacy, as well as more space, if they have their friends and families with them.
You get to make more money, fast!
Well, when situations call, you might as well charge more for short-term rentals compared to long-term rentals. However, as an owner, you’ll have to consider factors such as market volatility and vacancy rates. If you try to charge much more than the rates are in your market, you may end up empty handed. This is why it woud be best to consult with a professional property manager, especially if it’s your first time renting out a property.
This is one flexible investment!
The choice of when to rent lies in your hands. You might as well decide to take a vacation in one of your short-term rental homes, and guess what? You won’t be charged at all.
You’ll get amazing deductions. You’ll get deductions on management fees, cleaning and maintenance, and so much more. Fewer deductions mean you could record a loss, and in the process, avoid taxes.
You’ll get tax advantages
If you own rental properties and operate them as a business, you’ll be able to deduct mortgage on these properties, and you may also be able to deduct over 15% of the net rental income from your income taxes. This is according to the new Federal Tax Law.
You don’t have to build a mansion on a high peak near the beach to rent it out. Short-term rental apartments can be built in all shapes and all sizes. It might even be a tree house. This is why you don’t really need a crazy amount of start-up cash.
Less maintenance and repairs required
The guests don’t stay long, and that’s an advantage to you, as you’ll be able to repair small damages made before they can turn into massive problems. After all, there might be no damages caused at all since the guests don’t stay long.
It’s also important to note that just as every other investment has its disadvantages, short-term rentals also do. Unlike long-term rental homes, short-term rental homes have less payment consistency and take more effort to run. Also, more risks are involved because you don’t get to know your tenants properly. Different people with different intentions rent your apartments and leave as soon as they come.