I stumbled on short term rentals several years ago. This was before the boom in rent to rent schemes and courses. I was just desperate to generate some cash flow, before I could remortgage. And voila, I found a cash cow!
This Summer, a lot of my business has come from my previous renters or my network. Airbnb has brought in some business as well but not like it has done over the last 2-3 years.
A few other investors have reached out to say they are experiencing voids or having to reduce prices to ridiculous rates to get the properties rented.
But should you still be thinking of getting into a short-term rental?
Yes!
It is high risk, it has always been. This is why a lot of investors simply just find a long-term rental and forget about it. But it is also a high reward when done correctly.
The problem is that most investors only focus on the high reward, but neglect to plan for the high risk part.
For instance, when the lockdown happened, overnight, Short-Term Accommodations crashed. Yes, it was a black swan event but a lot of us got burned.
While this season is nothing compared to lockdown, it still shows how risky it is when you don’t plan for different scenarios and focus on the upside only. You need Plan A, B, and C to survive in this market.
