Tampa Bay is currently one of the most densely populated metropolitan areas on the west coast of Florida. With the new arrivals from out of state, the population is projected to increase exponentially over the next five years. The rapid population growth coupled with a focus on job creation and the strong economy has made Tampa Bay a perfect market to make a real estate investment. This is especially feasible for homeowners looking to buy vacation houses for rent when they’re not using them to defray some of the costs. A short term rental provides a substantial income for the owners while at the same time increasing in value. Here are five reasons why short-term rentals are a sustainable real estate investment strategy.
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Tax Breaks
One of the outstanding benefits that come with investing in Tampa Bay home rentals is the tax break. Although the local government recently implemented laws to tax Internet-based rentals, most property owners who wish to rent their place for up to two weeks per year still qualify for a 14-Day Rule. The tax rule states that property owners do not have to pay tax on the income earned from the short-term rental of fourteen days or less. This makes vacation homes a perfect real estate investment. However, be sure to research all pertinent laws in Tampa Bay before investing in the short-term rentals.
2. Flexibility
A short term rental offers homeowners the benefit of flexibility. For instance, you can use it for an impromptu vacation when no one is staying at your property. During the winter months when you know you’ll want to use your Tampa Bay property, you can reserve it for personal use. This will be a sure way to enjoy the variety of lifestyle options. And, enjoy them without the massive financial burdens that come with owning a second home.
3. Stability of Income
Another reason why short term rentals work best, when trying to buy a home, is their lucrative nature. As the property owner, you’re able to control prices as you please depending on the demand. During special events such as a convention, big sporting event, or a music festival in town, you can triple your standard rates per night for the period. Although it may not be a good idea to charge premium rates for specific time periods, travelers expect to pay premium prices during high-season, special events, or holiday. Therefore, investing in a short-term rental will increase the bulk of your income during these times.
4. Low Maintenance Cost
In long-term rentals, the cable, phone, internet, and electric bills can add up to a hefty amount of money every month. Conversely, transient rentals incur these utility bills usually when a tenant rents the property. This makes it easy to offset the bills considering the premium rates you charge.
5. Convenience
Finally, convenience and ease of operation are other benefits that make short-term rentals a sustainable investment. With the right real estate agent to do all of the work pertaining to maintenance, insurance, and cleaning, vacation homes are easy to operate. Also, the online vacation rental websites, like VRBO, HomeAway, and Airbnb, help you snap a few pictures of your property or return potential guest emails from the convenience of your couch. This has made it a lot easier to list and rent your vacation property to locals needing a staycation. Or, to business travelers, or even tourists. Trusting Tampa Bay Realty to manage your houses for rent in Tampa, Florida, will guarantee an effortless way to earn extra income from short-term rentals.
