What are the challenges of short-term versus long-term rentals?

Written by: James Tarrant

Whenever a prospective landlord thinks about converting their property into an Airbnb rental there are pros and cons that go along with it. Depending on your goals, market conditions and the unique characteristics of your property, it's probably one of the more difficult decisions to make. 

In the short-term rental market, the ability of owners to create higher potential income because of the need to stay competitive can be a huge advantage, but it comes at the costs of more frequent turnover, inconsistent income and the need for more active management. 

Long-term hosts experience the opposite with lower nightly rates, less turnover, a steady and consistent income stream that typically requires less active management. 

How do Airbnb owners manage short and long-term rentals effectively? What are their unique challenges? Let’s start with short-term rental challenges. 

Setting Expectations 

The key is setting clear expectations right from the start. Communication is key to helping avoid misunderstandings. This is accomplished by providing detailed information about your rental, including amenities, house rules including check-in/check-out procedures. 

Highlight Listing Attributes 

To make your listing stand out it is advised for owners to take high-quality photos, and write engaging descriptions on social media platforms and websites to highlight the unique features of the rental. 

Competitive Pricing

When you live in Newfoundland and realize that you are competing against 1000 other Airbnb owners it’s always to your advantage to conduct proper research into similar rentals in your area to determine what is fair and competitive pricing. Some of the factors that will help you could include your location, amenities and seasonal demand to set your rates. 

Cleanliness 

A clean accommodation keeps guests happy and coming back. It’s important to regularly clean and maintain your rental to ensure a positive guest experience. It also helps to also address any issues that could arise during a guest's stay. 

Providing Essential Amenities

A guest should never have to worry about running out of toilet paper, linens, or kitchen supplies. Do yourself a favour and keep up on basic rental essentials to enhance a guest's comfort during their stay.  

Responsive Communication 

A great way to build trust with guests is by always being responsive to inquiries immediately and any other issues that could arise during their stay. Consistency is key. 

Ask for a Positive Review 

Traditional and social media marketing can help an Airbnb rental property listing but word-of-mouth advertising still goes a long way. Always encourage guests to leave reviews after their stay. The results of a positive guest experience can lead to more bookings and build your reputation as a reliable host. 

Automation Tools

The utilization of apps, booking platforms and websites to streamline processes such as check-in, communication and maintenance requests will make the guest experience more enjoyable and convenient. 

Long-term rentals have their own unique set of challenges, which are mostly hands-on. 

Tenant Turnover

When you are the owner of a long-term rental property, finding the right tenant can be time-consuming and take extra effort. Also settling disputes, and complaints require effective communication and conflict-resolution skills. 

Maintenance & Repairs

Ongoing maintenance and occasional repairs sometimes can be costly and require communication and coordination with tenants. 

Rent Collection 

Ensure that your tenants pay on time. Dealing with tenants who have financial difficulties or fail to pay on time can be difficult. 

Legal

Owners must always stay on top of local laws, regulations and housing codes, which can be time-consuming as they require research and adherence to legal requirements. 

Management Logistics 

Managing your property will take a consistent effort to coordinate repairs, inspections and maintenance tasks. This is especially true if you have multiple properties that are distances apart from each other. 

Fluctuating Markets

Any change in the rental market can impact demand, rental rates and occupancy levels. These challenges can cause BNB owners to strategize new ways of dealing with and getting over these obstacles. 

As you can see the differences between the challenges of short-term and long-term rentals are like night and day. 

The great thing about Home Base NL is that you don’t have to deal with these challenges on your own. We can assist your Airbnb or B&B with property management services and media management to make sure you are one step ahead of your competition to ensure your success every step of the way.