Why Short Term Rentals Are Losing Their Glamour

Short term rentals have been a popular way to earn additional income. Whether you’re considering purchasing a rental property or renting out your primary residence, find out why this business plan has been losing its glamour lately. Learn some of the dangers of this rental strategy and find out how to invest in alternative rental options.

Listing short term rental properties through online platforms is a recent phenomenon. This means that there are many ups and downs this industry hasn’t yet experienced. The danger of investing in a new industry is that the future is unknown. Any industry can experience hardship, but it remains to be seen whether short term properties can survive an economic downturn.

There are currently few cities and states that have regulations on short term rentals. This is good news for rental property owners. Unfortunately, there are many signs that this is not going to continue in the near future. States and cities are beginning to realize that these rental properties are adding to the housing crisis and are understandably putting restrictions on rental properties. Too much regulation can cripple your investment and create hurdles for getting your investment back.

The current rental industry relies on a few key online companies for listing properties. As the number of listing services increases, so does competition. The increased competition typically lowers prices. While you may be easily renting out a property at a great value, the day could be approaching when you will have to significantly lower your prices to keep up. This may result may be a loss of income and, in extreme circumstances, you may need to sell your rental property.

Instead of relying on the short term rental industry and hoping that regulations won’t affect you, find out how you can secure the financing necessary to purchase an apartment complex or another long-term rental property. Long-term rental units offer a stable, proven income source for real estate investors who are looking for a great way to create an income stream while providing affordable housing for local tenants.

Enjoy the benefits of an income stream without the concerns of investing in a new industry. Compare financing options to see if you qualify for a commercial loan for an apartment complex or multi-family dwelling in your area. Rent out rooms using proven laws and regulations that won’t be subject to the same unknowns in the years to come.


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