If you’re getting ready to move, you may be wondering whether to sell your current house or keep it as a short-term rental. A short-term rental, often called an STR, is typically offered as an alternative to a hotel. These properties have gained popularity as investments.
The idea can be tempting. But keeping a house for guests is different from simply keeping a house. Successfully managing a short-term rental takes time, effort, and a willingness to handle the responsibilities that come with it.
Before deciding, look closely at three things: the day-to-day work, the upkeep your property may need, and the rules that apply where you live. Then consider whether selling would be a better fit for you.
Start With the Work, Not Just the Idea
It’s easy to picture your house welcoming guests. It’s worth spending just as much time picturing who will manage each reservation, organize each check-in, and handle the cleaning afterward.
A short-term rental is an ongoing responsibility. The question isn’t only whether you want to keep the property. It’s whether you want to take on the work of operating it.
Know What You’ll Be Managing
Managing your house as a short-term rental means juggling several duties:
- Dealing with reservations.
- Organizing guest check-ins.
- Handling cleaning between guests.
- Taking care of landscaping.
- Keeping up with maintenance and repairs.
Any one of these tasks can feel demanding. Together, they can be a lot to handle. Before committing, work through the list and ask who would be responsible for each task.
Would you do the cleaning yourself? Who would organize check-ins? Are you prepared to manage reservations while also keeping up with the property? These questions help turn a general idea into a clearer picture of the commitment.
Consider Rental Platform Requirements
If you plan to advertise your property through a rental platform, review its requirements before making your decision. Most platforms have specific requirements that hosts must meet.
Don’t stop at deciding where you would list the house. Ask whether you’re ready to meet that platform’s expectations along with the cleaning, maintenance, and guest-related tasks you’ll already be handling.
Be Realistic About Wear and Tear
Short-term rentals have high turnover, with new guests checking in and out frequently. That traffic can lead to increased wear and tear on your property.
As a result, you may need to make repairs more frequently. You may also need to replace furniture, fixtures, and appliances more often.
Think about that responsibility separately from routine cleaning. Getting the house ready for another guest is one task. Dealing with a repair or replacing something worn out is another.
Are you comfortable making repairs yourself? If not, who would you call? Before choosing to rent, consider whether you’re willing and able to manage both the regular upkeep and the additional attention the property may require.
Decide How Much Responsibility You Want
You don’t have to consider only whether the work can get done. You also need to consider whether you want to be the person responsible for it.
An article from Bankrate puts the decision this way:
“Managing a rental property can be time-consuming and challenging. Are you handy and able to make some repairs yourself? If not, do you have a network of affordable contractors you can reach out to in a pinch? Consider whether you want to take on the added responsibility of being a landlord, which means screening tenants and fielding issues, among other responsibilities, or paying for a third party to take care of things instead.”
Use those questions as a practical self-check. Would you handle issues yourself, or would you prefer to pay a third party? Do you have contractors you could contact when needed?
Be honest about the level of involvement you want. If you aren’t ready for the work, selling may be the wiser choice. You don’t need to turn your house into a rental simply because the option sounds appealing.
Check Local Rules Before Moving Forward
The short-term rental industry’s growth has been accompanied by increased regulation. Before considering your home for this use, thoroughly check whether your local government and homeowners association, or HOA, regulate or prohibit short-term rentals.
Wanting to rent your house and being allowed to rent it are two separate questions. Make sure you address both.
Review Limits and Property Restrictions
Legal restrictions commonly include limits on the number of vacation rentals allowed in a particular location. This is especially true in larger cities and tourist destinations, where there may be concerns about overcrowding or housing shortages for permanent residents.
Restrictions may also apply to the type of property that can be used as a short-term rental. Your research should address your particular house, not just whether short-term rentals exist in the community.
Look Into Licensing and Business Rules
Many cities require homeowners to obtain a license or permit before renting out their properties. Nick Del Pego, CEO at Deckard Technologies, explains:
“Renting short-term rentals is considered a business by most local governments, and owners must comply with specific workplace regulations and business licensing rules established in their local communities.”
As you research, ask whether rentals are permitted, whether your property type qualifies, and what licenses or permits are required. If you have an HOA, check its restrictions as well.
Compare the Commitment With Selling
Converting your house into a short-term rental is not a decision to make without research. Review the work, the potential for additional repairs and replacements, the platform requirements, and the local restrictions together.
Then ask yourself a straightforward question: do you want to take on this responsibility, or would you rather explore selling?
Your next step is to write down the tasks you would handle, identify where you would need help, and check local government and HOA rules. Talk with a local real estate agent about whether selling is a better alternative. Reach out to Ed Parcaut to discuss your move and the questions you want to work through before deciding.
