Vinayak Realtech

Do you travel a lot? Or, do you love to explore cities? Then, you must be aware of Rental Apartments. This new trend in the real estate market has brought a revolution. It helps the users to get a home-like feeling in a hotel-like manner.

In the post-COVID-19 era, there is a huge shift in the work culture and lifestyle. Most offices and people have opted to work from home for a lifetime. Hence, they keep working from different parts of the world. Moreover, often, people choose staycation (work+vacation). It allows working while traveling and this short-term rental is a savior in these short leaving periods. However, what is it? What are the benefits? Let’s dive into the details so that you can make more informed decisions.

Let’s start!

Rental Apartments-What is Short-term Rental?

Typically, short-term rental indicates the culture of renting a property for less than 30 days. However, you can take the property for more time. The highest duration depends on the state and jurisdiction where the property is situated.

If you plan to invest in the real estate market, investing in this property is one of the best decisions ever. Due to a huge shift in the work culture (hybrid, work from home and staycation), the demand is rising. Besides that, the concept is becoming popular among travelers who dislike staying in a hotel. Hence, getting a tenant is not going to be difficult for you.

However, experts suggest checking some documents before choosing a tenant.

The documents are:

• Background Check
• Credit Check
• Security Deposits
• Salary Slips
• Bank Statements
• References

Here, we have a pro tip for you. Always sign a rental agreement before you allow the tenant to live in your property. It is a legal document, that contains information, such as the owner’s name, owner’s address, tenancy period, tenant address, terms and conditions, etc. It allows (both parties) the power to take legal help if anyone breaches the terms. Moreover, the rental duration can be increased at any time.

Background verification, document checking, and rental agreement- the whole process can be overwhelming for anyone, not for a builder. Hence, you can ask a builder to work as a broker for you, this way you will be able to maintain another income source without any hustle.

On this, we, Vinayak Realtech are always there for you. We can guide you to get the property in the best location and a trustworthy tenant. It is a steal deal offer indeed and if you have decided to invest in it, you must know the pros and cons before that.

Rental Apartments- The Advantages of Short-term Apartment Rental:

Short-term rental apartments are gaining rapid popularity in India. It helps both the owner and the tenant. A tenant can get a home-like place without spending hotel-like money. It comes in both furnished and non-furnished. Hence, a tenant gets enough liberty. On the other hand, it provides a permanent income source for the owner. Let’s dive into more advantages of it:

1. Permanent Income Source:

House rent works as a passive income source for homeowners. One might ask that it is one of the oldest ways of making money through retail estate property. However, the concept of putting it on rent for 15 days or less than 30 days is new. It helps in earning more than the long-term rent. Additionally, there is less chance of developing issues with the tenant.

2. Provides Flexibility:

This section is dedicated to the tenants. Short-term rentals provide flexibility in managing a home for themselves. Be it just for a work meeting or, for a 15-day stay, short-term rentals are there. Moreover, short-term rentals come with a kitchen and other facilities. Hence, you will be able to live like your home.

3. Availability of the Options:

With the rapid popularity, there are a lot of options for short-term rentals. Hence, one can get an option that fits every budget. It is increasing convenience, additionally, keeping the whole market competitive.

4. Available Amenities:

Tenants can get a well-furnished apartment. It saves time and money. Plus, it reduces hustle.

The aforementioned advantages show how much short-term rentals have added convenience. However, like every other thing, it also comes with certain disadvantages.

The Disadvantages of the Short-term Rental Apartments:

If you are planning to invest or planning to stay in a short-term rental you must be aware of the disadvantages it comes with. Here are the disadvantages:

1. High Initial Cost:

As an owner, you have to spend a handsome amount in the beginning. Moreover, if the property is in a posh or commercial location, it may make a hole in your pocket.

On the other hand, if you are a tenant, you must deposit a handsome amount for this kind of apartment. Please note, that this deposit money is much higher than long-term rental properties. Additionally, if you book a furnished apartment or property, you must pay a higher price.

2. Property Management:

It is solely for the owners. As an owner, managing a short-term rental can be hectic for you. You have to keep visiting the property for maintenance purposes (if you go for the long-term rental, the tenant remains responsible for taking care of the property). Additionally, you must have a look every time before your tenant leaves the property. So that, if there is any kind of damage, you can ask for the payment.

However, if you can’t handle so many things, hiring a broker is the easiest way.

3. Legal Limitations:

Every country and city has a unique set of laws for short-term properties. These laws are different from the long-term rentals. Hence, whether you are an owner or tenant, having adequate knowledge about this is mandatory. Instance, in London, you can’t rent a short-term rental property for more than 90 days.

4. Time Consuming:

Getting a home with just one call is extremely convenient for a tenant. However, it is not so good for an owner. As an owner, you have to keep attending calls and answering queries. Contrary to long-term rentals, you can’t be in peace.

Missing calls and late replies can lead to lower ratings on popular short-term rental sites like Airbnb and harm potential tenants.

5. Trust Issues:

It applies to both owners and tenants. Allowing a stranger at your property can lead to trust and safety issues while staying with strangers leads to the same problems.

Hence, checking background and all related documents is important for tenants and owners, both.

Short-term rental properties require a higher engagement of an owner. The owner must be active on the rental sites, answer all the queries, take care of the property and so on. However, it gives a much higher return than long-term rentals. Hence, opt for this investment if you have ample time only.

On the other hand, if you are a tenant, you must trust an owner. To ensure safety, take ample time for background checks. Additionally, only trust reputed sites like Airbnb for this.

What are Things to Consider Before Investment?

 The demand for short-term rental properties is rapidly increasing in India. If you also want to invest, you have to remember that the competition is rising. Hence, competitor analysis, area research, etc., are important to secure a high return from the investment. 

Here is the breakdown of things you need to consider before investment:

• Market demand
• Location
• Budget
• Rental agreement
• Awareness of rules and obligations
• Estimated income and profit
• Insurance for the property
• Maintenance and other expenses

Although it is a comparatively new concept in the real estate market, it is showing a potential for making a high impact. The target consumers of this market are the employees who have a professional commitment for a short period. Hence, investing in a commercial zone will help you make higher profits in a shorter period.

Wrapping Up: Rental Apartments

Rapid changes in corporate and tourism are leading short-term rentals into a booming industry. As the commitment is different, the rules and regulations of this industry are also different. However, the saddest part is, that most of the owners and tenants are not aware of all the regulations. It is leading to complexity and preventing growth. Hopefully, this article has helped you with this. If you want to know more, connect with Vinayak Realtech.