In recent years, investment properties for use as short-term rentals have become a popular option for people wanting another source of income. Many guests enjoy staying somewhere with more space, comfort, and privacy than a hotel. Depending on the location and offerings, a short-term rental property can be an extremely good investment.

If you’ve been interested in purchasing an investment property, such as a cabin or lake home, here are a few things you should consider first.

How Short-Term Rentals Work

Short-term rentals are properties that are typically rented out for fewer than 30 days. Many of them are posted on sites like Airbnb or VRBO. These sites make it easy for those interested in staying to book directly through the website. As the owner, you are the one responsible for handling bookings, inquiries, and interactions with guests.

Where are Short-Term Rentals Allowed?

Short-term rentals are not allowed everywhere. Before you purchase a property with the intention of turning into a short-term rental, you need to make sure it’s allowed in the area. Different cities, counties, and HOAs have rules and regulations regarding rentals. This may affect the length of time someone is allowed to rent—or whether short-term rentals are allowed at all. Additionally, specific permits may also be required.

Maintaining a Short-Term Rental

An important aspect to consider when managing a short-term rental property is keeping up with maintenance. You will be responsible for cleaning the indoor spaces, maintaining the yard, keeping items stocked, and making necessary repairs. If you purchase an investment property far away from your existing home, you will likely need to hire a team to help with cleaning and maintenance.

Impacts on the Community

There are mixed opinions on whether short-term rentals help or harm small communities. Some neighborhoods frown upon short-term rentals since guests can be unpredictably loud and disruptive. Constantly having new people in and out of a home also takes away from the close-knit feel that some neighborhoods have. However, short-term rentals can help boost the local economy by bringing more tourists to the area, benefitting local businesses and their employees.

If you’ve been curious about an investment property Up North, reach out to our team. We can answer any questions you may have about rental cabins and the best areas to start your search. We know the area better than anyone and will help you find a cabin that serves your needs for years to come.