Short-term rentals are for everyone! Millennials are the key demographic in the short-term rental market, with most guests being 24 to 35 years old. Short-term rental customers vary, and you may find a variety of segments, so you can choose your audience accordingly. You can also consider catering to a specific market, such as business travelers, family trip planners, couples, or all of them.
If you want to maximize returns from short-term rentals in İstanbul, start by selecting the right location. Some of the best areas for short term rentals in İstanbul like Şişli, Beşiktaş, and Kadıköy attract high demand due to their central location and vibrant atmosphere. Conducting market research will help you identify areas with strong tourist interest, growth potential and affordable rental areas in İstanbul. Properties in trendy locations or near tourist attractions often provide higher rental income.
Short-term Rentals: Advantages
1. High Income Potential
Typically, short-term rentals in tourist areas cost more than long-term rentals. During holidays, festivals, sporting events, concerts, and peak periods, you can expect to charge a premium and can adjust your nightly rates according to the demand. This results in high-income potential. A short-term rental property may generate 2-3 times more rent per month than a long-term rental property, this would depend largely on the local market conditions.
2. Flexible Pricing
The price of a short-term rental can be easily adjusted to meet the prevailing market rate, maximizing rental income. Dynamic pricing tools could be used to accomplish this to gain maximum benefits. If a long-term rental property can generate $2500 per month, a short-term property may make twice as much. That number increases even more in popular vacation spots.
3. High Demand
The oldest law of economics applies more to short-term rentals than to long-term rentals – supply and demand. For example, if you own a beach home, demand surges during the warmer times of the year. Short-term rentals can create substantial income compared to the carrying costs of the property (mortgage, insurance, association fees, taxes, etc.).
4. Less Wear and Tear
The average length of stay in short-term rentals ranges from a few days to a few weeks at most. Since these are short visits and quick turnovers, the property gets cleaned far more often than under a standard long-term lease. It gets cleaned at least a few times a week between guests, making it cleaner than one occupied by long-term renters who may or may not clean and keep the place tidy.
In terms of wear and tear, Airbnb guests rarely spend much time at the property. In most cases, they’re visiting an area for tourism or business purposes, so they’re out and about at work or exploring the area, spending less time indoors. This results in less time-wear on the property, resulting in lower maintaining costs.
5. Increased Maintenance
With more frequent tenant turnover, short-term rentals receive regular, professional-level maintenance on a much more consistent basis than long-term rentals. Properties are cleaned, and minor repairs are addressed almost immediately upon one guest vacating and the next guest taking occupancy.
6. Flexibility
The flexibility involved for owners who rent out their properties short-term is much greater. You have the option of blocking off calendar periods you want to keep free for your own personal use inconveniencing no one by doing so. Additionally, as the property owner, you can also use the property for your own vacations as needed.
7. Tax Benefits
The best tax breaks for homeowners go to short-term rental owners. Make sure you are familiar with the tax laws in your state. In general, a place could qualify for the 14-day rule if it is rented for 14 or fewer days per year. If a property owner rents for 14 days or less a year, they will not have to pay taxes. Insurance, maintenance, and utilities related to the rental can also be deducted. The best thing about running a short-term rental is meeting people from all walks of life. Your next Short-Term Rental acquaintance could become a lifelong friend!
