A home in rural Kentucky is less likely to be a good idea for short term as the amount of travel to that destination is a major component to creating a great short term rental proposition.
Short term rentals are not normally the choice of those that are looking to spend a night in traditional homes in areas of the country that do not produce a great deal of tourism. Local residents don’t normally look for short term rentals as they are looking for a long term solution for a long term problem.
Short term rentals are not as much about housing as they are about the experience.
Homes in vacation spots are obviously the best candidates for short term rentals.
The number of Short term rentals are based on the price of each night booked and projected number of nights in a given month that the property will be booked. Instead of months of vacancy being the object of the landlords focus, it is the number of nights vacant which seems more complicated but at the end of the month the short term rental home is more likely to generate more dollars than the long term rental. This does not hold true of all short term rentals as we need to consider the three staples of the real estate world…location, location…location.
If a home is in a densely populated area where people often travel for business or pleasure the vacancy rate is much lower on average. As an example a house near an airport is more likely to be rented by itinerate travelers where a home in less likely to be rented the further it is from a major travel hub.
A home that generates $2000 a month in long term rental can generate three times that as a short term rental. The home owner is more involved with the short term rental and the experience for the guest/tenant is much different. The reason the short term rental generates more per month is based on two factors.
When the traditional rental is vacant for a month every other year. The short term rental can be vacant for up to 6 months of every two years and still come out ahead financially for the home owner as the dollar per night is much higher.