If you have been thinking about transitioning your short term rental into a long term rental, you aren’t alone. Many rental property owners are feeling pressured by the ongoing pandemic and Online Travel Agency (OTA) sites that are forcing longer term stays. Some places, like Toronto, Canada, are forcing property owners to register their STR if they rent for stays less than 28 consecutive days. This may all seem very overwhelming, and a tad bit confusing, but not to worry!
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 email@example.com.
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