Short Term Leases
It is no secret that the short-term rental business is red hot right now in the world and also in Chile. Demand for travel is higher than ever, yet many people are looking for different experiences than we had just a few years ago when we thought of stays.
Short Term Rental Benefits
higher earnings
A well-marketed short-term rental in an attractive area will always outperform a long-term rental in profit. It is important to work well on the operation and marketing of the property in the area to achieve financial objectives.
better maintenance
Short-term leases allow you to take better care of your investment. With shorter stays, you can enter the property and have the property cleaned more frequently and catch any maintenance issues before they go on too long.
Flexibility
You have full control over the calendar and when you want to offer your Shelter for rent or just enjoy it yourself. If you decide to do renovations, you can block the calendar for as long as it suits you.
Capital gain
Regardless of the monthly income, the value of your property will appreciate year after year. The longer you keep your rental property, the more it will be worth when you decide to sell it. The rate is never guaranteed, but real estate does not go down in value.
Inflation
Real estate is a natural protection to cover inflationary risks since they are in a market that trades in UF. In addition, vacation rental rates can be adjusted more frequently.
What are Short Term Leases
A short-term lease refers to the rental of temporary property or housing for 12 months or less. Most short-term housing is rented weekly or monthly, but they also offer nightly rentals. They are an alternative to a hotel and are sometimes called vacation rentals.
With more flexibility to work from home, guests can stay a little longer and explore a little more. Today's travelers are excited about private getaways in less populated areas that have a home away from home feeling.
Thanks to popular travel sites like Airbnb, the travel industry has undergone a huge change when it comes to stays, big hotels are no longer the world leaders in this industry.
How to manage the short-term rental?
Short-term leases require a little more work than annual lease contracts, mainly in marketing and property operation. You must coordinate the cleaning, monitor the calendar, answer questions, as well as advertise and market the property to reach your target segment.
If you choose to do the work yourself, you'll make a slightly higher return for the sweat equity you're putting in. This is usually reserved for seasoned professionals who know the ins and outs of the business and want to get the best possible return.
If you are new to the industry or just don't have the time, you can leave it to us or hire a property manager to do the heavy lifting for you. They will take a small fee from your winnings, but their knowledge and experience is well worth the cost.
How should I choose a location for my short term rental?
Choosing the right location is extremely important. When looking for a property, the same criteria that you would use for a long-term rental do not always work.
Destinations outside of metropolitan areas are becoming more popular these days. Also, properties close to outdoor adventures like mountains, deserts, and national parks work great.
