5 reasons short term rentals are better than long term rentals

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What's up guys? It's James here and in today's video, we're going to talk about five reasons why short term rental properties are way better than long term rental properties. Now, I'm going to talk to you in this video and break down my top five reasons why I love to invest in Airbnb short term rental properties. Instead of investing in long term rental properties, Why think that they're better five different reasons.

Now, if you want to get started investing in short term rental properties, if you want to go and actually buy short term rental properties, and get a fantastic return on your investment, then just go ahead and click the link down below to schedule a quick 15 minute chat with me where we can talk more about how I might be able to help you get started investing in these incredible assets.

If you want to start investing in property short term rental, then just go ahead and click the link down below schedule a quick call, we can talk more see if it would be a good fit for us to work together, I am going to be working with a really small, really intimate group of students in a private mentorship program over the next six months here, showing them step by step and investing right alongside with them, showing them how to invest profitably in short term rental properties the way that I've been doing and the way you can do too. So just go ahead and click the link down below in the description to schedule a quick 15 minute chat with me. And we can talk more about how we can make that happen for you.

Now, let's get into it. Let's start with Reason number one, why short term rentals are better than long term rentals now, or one the obvious one more money you get better returns on them the cash on cash return that you get from a short term rental is way way better. Now thinking about it. If you're looking at buying single family homes for investing as a long term rental then it just blows it out of the water. Now you might be able to make a case with a long term rental that's a duplex triplex multi unit building raving commercial, that you're better off doing long term rental because you get more appreciation you can buy bigger buildings, etc, etc.

At the end of the day, you're getting way more cash flow out of short term rental than you are long term rental and almost any property that you could get for a long term rental property, you can now convert into a short term rental property and make way better returns. So the numbers are they speak for themselves, you can earn generally 50 to 100% better numbers that returns by having the property on short term rental versus long term rental.

So in my mind, that's just a total no brainer. Set aside the fact that the cash on cash return that you're getting is that's the real money in your pocket. We're not talking equity, we're not talking appreciation that future money. We're talking money right now, which is obviously the most valuable. So number one reason for me is that you just get better returns.

Now Reason number two why short term rental properties are better than long term rental properties is because you don't have to deal with tenants, there's a huge risk with tenants and the landlord tenancy act. Depending on where you're located. It means that if that tenant overstaying their welcome, they stop paying rent. If they're trashing your property, you need to go through a lengthy and exhausting eviction process to get them out of their knees use less less control over your property, you can run into some issues that are gonna drag out and take a really long time, you don't have to deal with that with short term rental properties.

Sure, you do have to deal with your guests. And there can be issues from time to time. But none of those issues are going to drag out for months and months and months, the way that an eviction process can, you're never going to have someone stuck with that them in your property. Because if they overstay their welcome, it's trespassing and they need to get out of there. So that's reason number two is you don't have to deal with tenants and all the issues that can and often do come along with having tenants in a long term rental property.

Reason number three is more control over your listing, when you rent a property long term to someone means that you don't get to go in there very often, you don't get a lot of visibility on the property. And you ultimately just don't get that much control about what you can or can't do with that property. You can't just kick the tenant out they have certain rights that allow them to stay in that property, even if you don't want them in there.

With a short term rental property, you just get more control and more visibility over your property. You're getting in there every couple of days with a professional cleaning team. They're going through and inspecting everything, make sure the property is kept in pristine condition, make sure it's properly cleaned and maintained. That's a really, really big advantage in my book because it means that I get a lot more visibility and control and I have a lot more protection of that asset. It also means that I have the flexibility to do what I want with their property.

If I want to take it off, put it back on short term rental, I can do that. Now that leads into Reason number four, which is the lifestyle asset component of short term rental properties. It's pretty cool to be able to own a property that you actually want to go and stay at and that you can actually go and stay at. The reality is most people investing in long term rental properties wouldn't want to live with their own long term rental property and Even if they wanted to, they couldn't, you don't have the freedom and the flexibility to do that.

Buying short term rental properties means that you can actually buy them and then use them as your own vacation rental, you can use it to get away to a different city, if you buy it in a different city, you do all kinds of things with them. So it's a really great lifestyle asset. And that also means that you can turn that vacation home of yours that you are going to buy anyway, into a cash flowing asset that's actually building wealth, building cash flow for you.

So that is a huge advantage is that lifestyle component. Now, the fifth and final reason that short term rentals are way better than long term rentals, in my opinion, is the amount of leverage that you get with them. And what I mean by that is it with a traditional with a typical long term rental property, you can maybe increase your rents a little bit, but you're not going to send them absolutely sky high, there's just nothing you can do. Because the market is generally relatively competitive and relatively flat. You know, there's a preset rate of how well you can do with a long term rental property with a short term rental property.

On the other hand, if you buy the right property, then the sky is virtually the limit on how high your monthly rent can go. If you know how to do the right things, how to add the right amenities optimize your pricing strategy. For example, we bought a property recently there was a $500,000 property. Now that property, if we were to rent it long term would do about 1000 to 15 $100 a month in rental income, if we ever renovated it, which we did. And we could probably rent it for closer to 21 or 20 $200 a month. And that's great.

That's what you could have done with long term rental, you could have increased the rent by that 700 or so dollars per month. And that's not bad. And maybe you could do something, you could do something a little bit nicer, and you get to go maybe squeak a little bit higher and get to 22 or 20 $300 a month. But the reality is you're not getting some massive return, you know, really blowing the numbers out of the water. Now, we flipped that property on a short term rental. And in the best month so far was the month of July, that was our second month ever.

And that property brought in $30,000, just try to wrap your head around that $30,000 in one single month in July, right? Just imagine that try to wrap your head around that this property is going to average about $10,000 per month grant that July is the best month of the year, I get that. But even if you break it down and look at the averages of the monthly income, you're looking at a $10,000 a month average for this property, there is absolutely no way that anyone would ever pay $10,000 a month for that property if you were to rent it to them long term.

But with short term rental, we just have more leverage, there's more levers that we can pull to increase those nightly rates, increase those occupancy rates, get high value bookings, and have that property performing at such a high level. So just being able to leverage those scales means that you can get astronomically better returns on your investment when you compare it to a long term rental strategy.

Now again, if you want to learn how to be able to do that for yourself, if you want to learn how to take a property that you know buy long term rental standard should be making $2,000 a month and turn it into a property as making $10,000 a month and reap the rewards of that then just go ahead and click the link down below schedule a quick call with me. I'd love to talk more with you and see if we will be a fit because like I said, I am today working with a really small intimate group of people over the next six months here showing them how to invest in short term rental properties and how to do a profitably and exceptionally profitably at that.

So go ahead and just click that link down below if you want to schedule a quick 15 minute chat at no cost to you just to talk about and see how we might be able to be a fit to work together. So that's of interest and just click the link down below to schedule that call. As always, if you got value from this video if you whether you agreed or disagreed if you got value. If you thought this is insightful, let me know by hitting that like button. If you disagree with the video, if you didn't like it, then do me a favor and just hit the like button anyways, it helps me out a lot with YouTube's algorithm.

So if all you could just hit that like button, take half a second now hit that like button, it would really help me out a lot means a lot to me. I really, really appreciate it. And as always share your thoughts in the comments down below. If you disagree with some points. I'd love to open the discussion up let me know what you think. And also, last but not least, hit that subscribe button make sure that you're subscribed to the channel to stay up to date we post two new videos every single week. So make sure that you stay in touch with the channel hit that subscribe button so you can stay up to date with everything. And I'll see you in the next video.