If you’ve been contemplating transitioning your short-term rental into a long-term rental, you’re certainly not alone. Many rental property owners are feeling the pressure of ongoing pandemic-related challenges and evolving regulations imposed by Online Travel Agency (OTA) sites that are increasingly favoring longer-term stays. For instance, cities like Toronto, Canada, have implemented regulations requiring property owners to register their short-term rentals if they are rented for stays shorter than 28 consecutive days. Such regulations can add a layer of complexity to managing your property and might make the transition seem overwhelming and confusing.
However, there’s no need to worry. While these changes can initially appear daunting, they also present an opportunity to reassess your rental strategy and potentially benefit from a more stable rental income. Long-term rentals can offer more predictable revenue streams and reduce the frequency of guest turnover, which can be advantageous during uncertain times. Additionally, adapting to new regulations and market conditions can help ensure your business remains compliant and competitive.
To navigate this transition smoothly, start by researching the specific regulations in your area and consulting with local real estate experts or property management professionals. They can provide valuable insights and help you understand the implications for your property. Additionally, consider evaluating the financial impacts of switching to long-term rentals and how this might affect your overall business strategy.
By staying informed and proactive, you can make well-informed decisions about transitioning your rental property and continue to manage it effectively, regardless of the changing landscape.
Determining whats needed for long term rentals
Let’s first figure out what you would need to do to make the transition. With longer term rentals, comes a greater time commitment to the property and your guests. Right now, you are probably used to having many guests for little bouts of time, with the extension of your guest’s stay, you have to figure out how to change the way you run things. As you will be taking less guests, you’ll need to make sure that the guests you end up choosing are exactly who you want in your rental for an extended period of time.
Asking good questions from your guests, and making sure that you have a set of rules that you want your guests to adhere to. With longer term stays, you will most likely have a greater involvement in the property management, as now it is just one guest that will be accessing your facilities. Structuring a well thought out rental agreement can give you and your guest the peace of mind that’s needed whenever renting a property.
From choosing the right guest, and making sure that they follow your rules, you’ll now have to pivot the way you rent your property so that it’s more long term friendly. With short term rentals, you tend to focus on the key features of your property and the sights nearby. With longer term rentals, many guests will be looking for proximity to transit, restaurants, grocery stores, etc. Make sure to update your listing accordingly.
From there, also evaluate what you currently have in your property. Are there any items that you think are missing? The last thing you want is to have a long term guest not being able to make coffee because of a missing coffee maker. Making sure your rental is properly equipped will allow you to be less directly involved in the maintenance of your property.
Also, with longer term rentals, you will be receiving more consistent income because of the bookings. However, with the increased amount of days booked also increases the utilities. Make sure that your rental rates are reflective of the increase in utility usage. At the end of the day, determining whether you want to switch to a long term rental is completely up to you. One key thing to note is the difference in experience. There will be more involvement on your end, as you are transitioning from a property manager to a landlord. When switching over your rental, there will always be something new to consider, but like always, if you have any questions feel free to email contact@ensoconnect.com.
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