Investing in real estate can be a good long-term investment as it will offer you with an asset that can grow in value and help you build cash-flow each month. When you are going to invest in real estate, there are various options to consider. Today, real estate investors will want to choose between purchasing long-term and short-term real estate rental properties. Kyle Kerr and other real estate professionals provide insight into how to understand the differences between these two real estate investment options.
One of the differences between long-term and short-term rentals is the characteristics of the location. With a long-term rental, you will want to find a location that has a consistent population base and a demand for housing. This can include an area near a large city, located near public transit, or one near a college or university. With a short-term housing investment property, Kyle and other real estate professionals would suggest finding a location that has demand from tourists. This can be a proper located in a city center, one near a lake or ocean, or other places that are bound to have demand for short-term stays throughout the year.
Suggests Remembering Management Responsibilities
With either type of real estate investment, there are going to be great opportunities to earn income and a strong return on your investment. However, it is important to remember that there are management responsibilities with each type of asset. If you have a long-term rental real estate property, you will need to be attentive to your tenants and handle maintenance needs when they come up. There can also be work needed for leasing and rent collection, but you may be able to handle this on your own if you live near the property.
The management responsibilities of a short-term rental can be more challenging and time-consuming. With a short-term rental, you will have the same maintenance obligations. However, you will also need to have the rental cleaned on a regular basis and between each rental. There can also be a lot of work when it comes to marketing and leasing the property as well. Due to this, Kyle Kerr and others suggest looking into hiring a full-time management company.
With any type of real estate investment, Mr. Kerr and others suggest doing your diligence on regulations and rental restrictions. For long-term rentals, it is important to make sure that there are no rules in the community that restrict you from being able to rent the property out. There are similar risks for short-term rentals as many communities have restricted this type of use entirely. It is important to not only check current regulations for short-term rental restrictions, but also to assess whether there are any pending risks of this occurring.
Investing in any type of real estate property could provide great opportunity to earn a sizable return on your investment. When looking for a real estate investment, short-term and long-term rentals are both good options. Kerr and other professionals offer various tips that can help you properly assess an investment opportunity.