The next year I will be learning about short term rentals, the risks, and the gig economy. I intended to learn how to manage the risks which include:
When owning property in popular locations there will be competition to keep your short-term rental booked. Managing the price variations to book the rental unit will take time, research, and planning.
2. Vacancy Risk:
There is no doubt going to be the risk of vacancy. There will be seasonal bookings and off season dry periods. Being concerned about economic downturns is always a concern as well. Short-term rentals can be sporadic, which needs to be managed. Bookings will tend to be seasonal and hard to predict. There are times when an investor can have many bookings, and there will be times when the listing will become vacant. Let's address the pink elephant on the webpage... Yes, the Coronavirus is a concern! This next year we'll monitor the progress of the pandemic and learn how other short-term rental properties manage.
3. Ordinances / Regulations:
Many locations are trying to control short-term rentals by including them in local ordinances. This is all dependent upon the zone in which the property resides. These rules are often found in a zoning code, planning code, or city ordinances. Luckily I deal with these codes daily in my current position, so I have been navigating these complex decrees.