The idea of generating income from one’s home is great. If a family needs to leave town for short while, the benefits of renting their house out to someone on a short term basis are twofold: security and secondary income. It is on this premise that the concept of short-term rentals is based. A short-term rental refers to renting out a home or an apartment for a short-term stay. Owners of such properties typically rent out on a daily or weekly basis. Short term rentals can also include sharing one’s residence temporarily with a renter. In the past few years, short-term rental services offered by online aggregators like Airbnb have exploded across the globe. Their model is built on a seamless internet platform, which emphasize on cost-savings, everyday amenities, and the prospects for authentic local experiences.
The emergence of online marketplaces allow individuals to collaboratively making use of their underutilized spaces with the help of fee-based sharing. Dwellers have enthusiastically adopted listing services offered by companies like Airbnb, Lyft, TaskRabbit etc. to connect with travelers who choose short-term rentals for the completely different experience they provide as compared to hotels. While most of hotels are located in commercial neighborhoods, short-term rentals are most likely situated in residential communities allowing their guests to immerse themselves in local traditions and customs. This also enables guests to explore aspects of the location seldom exposed to the traveler or seen in any travel brochures.
Redefining Real Estate
Real estate has been a preferred choice for the investors who are looking for safe and steady returns. Short-term rental properties are the new segment in real estate rentals which has been gaining a lot of prominence in recent years owing to the better returns they generate as compared to conventional long-term rental properties. While short-term properties might require some hands-on management, more and more investors are considering short-term rentals as an investment alternative. Listed below are some of the key reasons why:
The popularity of online short-term rental marketplaces like Airbnb and Booking.com have created a surge in demand and popularity of short-term rental properties as a better way to invest in real estate as compared to conventional real estate offerings. What started out as a spare income generating source for individuals has now grown to include offerings as diverse as low budget property offerings run by individual homeowners to exclusive, luxury portfolios like SmartOwner’s STR Series which optimises investor returns through actively managed portfolios in high-growth markets across the globe.
Whether it is in offering homeowners an opportunity to generate secondary income from their home or as the newest way to profit from investing in real estate, it is evident that short term rentals are the new revolution that is redefining the way we look at home ownership and property investments.
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