In the past few years, short-term rental properties have become increasingly popular among investors. Whether it’s for real estate investing or simply a way to make some extra money on the side, there are plenty of reasons why more people are choosing to invest in short-term rentals. From potential tax savings to increased flexibility and higher profits than long-term leases, there is much to be gained from this type of investment.
When it comes to potential tax savings, short-term rental investments can be extremely beneficial. When you own a long-term rental property, the Internal Revenue Service (IRS) considers your income taxable and requires you to pay the appropriate taxes due on that amount. However, when you invest in short-term rentals, those taxes may be much lower. This can help you save money on taxes and increase your overall profits.
Another benefit of investing in short-term rentals is increased flexibility. Unlike long-term leases, which are typically locked in for a year or longer, short-term rentals give you more control over when you rent out your property. This means that you can adjust your rental prices depending on demand, as well as make adjustments to the length of stay so that you can accommodate different types of tenants.
Finally, short-term rentals also have the potential to provide higher returns than long-term leases. When it comes to real estate investing, the amount of rent that you charge is a huge factor in determining the overall profitability of your investment. With short-term rentals, you can often charge more for nightly stays compared to long-term leases, which helps maximize profits. Additionally, because more people are likely to stay at a property on a short-term basis as opposed to long-term, you may be able to rent out your property more frequently.
Investing in short-term rentals can be a great way to make money and save on taxes. With the flexibility, higher profit potential, and low overhead costs associated with this type of investment, it’s no wonder why more people are choosing to invest in short-term rentals. Contact Artis Commercial Capital to get the funding you need to purchase or renovate short-term rental properties.