Should I Short Term Rent My Home?

There is certainly merit to both sides of the discussion, the most common reason not to rent out a second home is because you either do not like the idea of other people staying in your home or you want your home to “feel like your home” while you are there (family pictures, heirlooms, etc) . On the other side , the quick and simple reason is there is a financial incentive. It could be just for supplemental income, or it could be for tax purposes, or maybe its to have other people pay your mortgage while the asset appreciates. Regardless of where the money is going, how you execute that rental is important as well. Is it a business that you operate yourself as a primary source of income? Do you hire a property management company so that you can make passive income?

The wonderful thing about todays vacation rental market is that the online platforms make the marketing and booking process very simple and the market is growing! In fact, the market is growing at a rate of almost 4% per year and is expected to continue year over year for the next 10 years. As the entire process becomes easier for the guest and the many benefits as compared to a hotel, there has never been a better time to take advantage of this growing market.

So should you manage your rental yourself, or should you hire a property management company to handle it for you? In some cases you wont have much of a decision to make. For instance, if your second home is nowhere near your primary residence, you will want to hire a company so that there is someone present before and after stays to manage damages, vendors, etc. But in other cases it could be a decision based on time and money. Do you want to spend the time to manage the property yourself, or do you want to pay a management company to handle this for your (management rates range from 10-25%).

Whichever way you land on whether to rent your home or not, it’s important to consider each side and make the correct considerations. Leave no stone unturned and make the best decision for you and your family.