A short-term rental (STR) is typically offered as an alternative to a hotel, and they’re an investment that’s gained popularity in recent years. If you’re a homeowner ready to move, consider using your current house (townhouse) as a short-term rental property instead of selling it.
New York City Short-term Rentals
It’s important to note that short-term rentals of residential units (rentals for less than 30 days) in New York City are generally prohibited unless; the permanent resident of the unit is present during the entire rental term. Most condominiums and cooperatives require a 12-month or 24-month lease term. However, some companies, such as Leasebreak, specialize in all kinds of sublets, especially those under 12 months.
Short-term Rental Challenges
While a short-term rental can be tempting, you may find the reality of being responsible for one difficult to take on. Here are some challenges you could face if you rent out your house instead of selling it.
A Short-Term Rental Comes with Responsibilities
Successfully managing your house as a short-term rental takes time and effort. You’ll have to juggle tasks like dealing with reservations, organizing check-ins, and tackling cleaning, landscape, and maintenance duties. Any one of those can feel demanding, but it’s a lot to handle.
Short-term rentals experience high turnover rates, as new guests check in and out frequently. This home traffic can lead to increased wear and tear on your property—meaning you may need to make more frequent repairs or replace your furniture, fixtures, and appliances more often.
Consider your ability to commit, especially if you plan to use a platform that advertises your rental listing. Most of them have specific requirements hosts must meet. An article from Bankrate explains:
“Managing a rental property can be time-consuming and challenging. Are you handy and able to make some repairs yourself? If not, do you have a network of affordable contractors you can reach out to in a pinch? Consider whether you want to take on the added responsibility of being a landlord, which means screening tenants and fielding issues, among other responsibilities, or paying for a third party to take care of things instead.”
Before taking the leap and converting your house into a short-term rental, there’s a lot to consider. If you aren’t ready for the work it takes, it could be wise to sell instead.
Short-Term Rental Regulations
As the short-term rental industry continues to grow, regulations have increased. Legal restrictions commonly include limits on the number of vacation rentals in a particular location. This is especially true in larger cities and tourist destinations where there may be concerns about overcrowding or housing shortages for permanent residents. Restrictions may also apply to the type of property that can be used for short-term rentals.
Many cities also require homeowners to obtain a license or permit before renting out their properties. Nick Del Pego, CEO at Deckard Technologies, explains:
“Renting short-term rentals is considered a business by most local governments, and owners must comply with specific workplace regulations and business licensing rules established in their local communities.”
Before even considering renting out your home, it is essential to thoroughly check whether short-term rentals are regulated or prohibited by the local government and your homeowner’s association (HOA).
Key Takeaway
Converting your home into a short-term rental isn’t a decision you should make without researching. Let’s connect today to decide if selling your house is a better alternative.
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