Three Things to Consider Before Buying a Short-Term Rental Property
Purchasing a short-term rental property can be a lucrative investment, but it's important to do your due diligence before jumping in. Here are three things to be careful of when considering a short-term rental property:
- Homeowners associations: Be sure that you're not buying into a community that has a homeowners association (HOA) that prohibits short-term rentals. Many HOAs require a minimum of a 30-day rental period for any property, so it's important to make sure that your desired rental length is allowed.
- Deed restrictions: Make sure that you are buying a property that doesn't have deed restrictions concerning the short-term rental option that you want to do. Sometimes deed restrictions can encumber one's ability to rent the property, so it's important to clarify this before making a purchase.
- Rentability: Be very careful where you buy to make sure that you can justify the number of rent that you expect to gain from the property. It's important to do market research and make sure that the property you are considering is in a location that will attract renters and command the rental rates you are expecting.
There are many more things to consider when purchasing a short-term rental property. If you want some more tips, don't hesitate to reach out to me directly or leave a comment below. Happy investing!
