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What is a Short-Term Apartment Rentals?

10 JUL 2024

In recent years, the housing market has drastically changed. The change is also visible in the concept of renting. Short term apartment rentals have become a mainstream business and provide owners with a great advantage. After the COVID-19 pandemic, there has been a sudden drift in work culture. Short term rentals have a sudden hype since people have to temporarily relocate to different locations for work. This is due to an increase in work-from-home opportunities. Since these buyers have professional and other commitments for a short period, short term apartment rentals will serve as an advantage. Also, the duration of stay varies, depending on the needs of prospective buyers. It may be for weeks, months, or an entire year.
Let’s learn more about Short term rentals and their significance.

What is Short Term Apartment Rentals?

Short-Term Apartment Rentals

The drift in work culture from office to work-from-home has changed the rental market. As mentioned above, the demand for short-term apartments has increased in recent years because of the change in work culture. Also, an increase in the number of tourists has made temporary house rentals a mainstream business. However, most people are not adequately aware of this means of renting. Proper awareness is significant.
Short term house rentals are furnished or non-furnished living accommodations available to individuals seeking a place to stay briefly. Apartment owners who look forward to renting can take advantage of this option. It will enable them to earn some monetary benefits from their property. Since the demand for short stay rentals is increasing daily, it is much easier for the owners to rent out their apartments to a third party. It is also essential to find tenants with clean records. Some reputed builders will assist the owners in finding tenants. Certain aspects should be taken into account before renting a space. Things to consider when choosing a tenant include:

  1. Background Check
  2. Credit Check
  3. Security Deposits
  4. Salary Slips 
  5. Bank Statements
  6. References

Having all the necessary documents and other relevant background checks helps to choose the right tenant and prevents the owner from future consequences. Here is where developers or builders play a vital role. Builders have years of experience in both long—term and short—term house rentals. We know all the procedures and paperwork required, and their assistance will make the process easy and convenient.
Most property owners or prospective buyers who are buying an apartment can consider renting the property as an income source. If the owner is not planning to stay on the property, it is better to have tenants inside. This idea will also help the owner have someone to look after the apartment in their absence, providing additional income. The property owner or the tenant will handle maintenance and other miscellaneous expenses as per the agreement. The rental agreement is one of the primary documents that needs to be drafted by the owner before renting.
The rental agreement is a legal document that property owners use when renting a property. It must include the owner’s name and address, the tenant’s details, contact details, the term of tenancy, and rules. Both the owner and tenant must duly sign the agreement. Most rental contracts are short-term. Moreover, the duration of the tenancy can be extended upon the owner’s decision. If it is month-to-month, it is easy to terminate the agreement.

What are the Pros and Cons of Short Term Apartment Rentals?

Knowing the advantages and disadvantages of short-term rentals is essential when considering them. Proper awareness of these short stay rentals will help owners and tenants choose the correct option. Let’s look into some significant pros and cons of short-term rentals.

Advantages of short term apartment rentals

Source of Income

Owners or landlords can earn more income by renting an apartment for the short term compared to long-term rentals. Renting is a means of income for property owners. Rent received is considered a passive income. As the apartment’s owner, they will receive a recurring income every month.

Flexible Nature

Since the rental is for a short period of time, it is convenient for the tenants to relocate to a different place. The demand for short-term rentals has also increased because of increased work-from-home opportunities. People will have to travel to various places to stay. Short-term rental apartments will help job seekers and employees find a place to reside for a short period of time. For instance, if they plan to extend their stay, it will also be possible if the landlord is interested.

Easy to Find

There are different ways to find temporary house rentals. Using house rental applications is one of the main methods to find short-rent apartments. Applications such as Indian property, 99 acres, Housing.com, etc. will allow the users or property seekers to get a better result. Another method to find a property is through listing. Brochures or posts can be seen in specific areas. The tenants can contact the owner or the assigned individual directly using the given contact details.

Furnishing and Amenities

Tenants can find furnished apartments, which is an advantage. It helps to save the time and energy required to add furniture to the rental space. The owner may keep the furniture and other amenities for the tenants at the residence.

Disadvantages Of Short term Apartment Rental

High Upfront Cost

Short-term house rentals or apartments require an upfront deposit higher than long-term rentals. The rent will also be higher if the property is furnished with additional features. This circumstance will make it unaffordable for the tenants to occupy the space.

Property Management

It is challenging to manage a short-term apartment. The owner must regularly visit to monitor the apartment. The landlords must ensure the apartment is free of any damages or wear and tear. For instance, in case of damage or any similar occurrence, the amount will be calculated and deducted from the security deposit given by the tenant. Regular visits are a burden for the owner. However, it is recommended that the landlord must make sure that the apartment is in good condition.

Regulatory Issues

The government imposes some rules and regulations for short-term rentals, which vary from state to state and locality. Therefore, the owner must adequately know the rules and obligations at the time of rental. Lack of awareness will result in future consequences. Moreover, some localities have certain limitations when it comes to short-term rentals.

Factors To Consider Before Investing In Short-Term Apartment Rentals

If you are thinking about investing in short term apartment rentals, there are certain factors that we should know. Since short term apartment rentals have become more competitive, investors have to do more research and make a well-planned strategy before investing. Lack of homework, knowledge, and strategy will lead to low returns or possible loss.
Let us look into some significant factors that we must consider before investing in short term rentals.

  • Market demand
  • Location
  • Budget 
  • Rental agreement
  • Awareness of rules and obligations
  • Estimated income and profit
  • Insurance for the property
  • Maintenance and other expenses

What Does The Future Of Short Term Rentals Look Like?

There has been a noticeable increase in the demand for short term rentals over the years. Moreover, it is evident that the temporary housing market will also show dynamic growth in the coming years. As mentioned, this change is due to increased tourism and a change in the work culture. Employees who have a professional commitment for a short period of time can avail of this mode of renting. Buying an apartment is not an excellent idea for short-term stays. Short term house rentals are the right option for them. Both property owners and tenants have mutual advantages. Since reputed builders and developers back the market, it is a great investment opportunity, too. High demand and high rent value will significantly benefit the apartment owners. Moreover, apartments can be found easily because of applications and other technologies. It will save the tenants or apartment seekers time and energy.

Conclusion

Short term apartment rentals are becoming a booming industry. The demand for short-stay rental apartments has drastically increased. Changes in work styles and tourism are the main reasons for this change. The process of renting includes different procedures and formalities. Most owners do not have an awareness of rules and obligations. At Confident Group, we have both rental and resale services. Our rental department provides all the support in finding the right tenants and properties. We also provide necessary assistance in all the agreement-related aspects. Thinking about short term rentals? We are the right ones to reach out to!

Author - Webdura

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