First of all, I will establish what kind of property you own or wish to own. If you have a home or a condo or apt and you want to make money renting a room, you will need to check the rules and laws of the association if there is one. By doing this, you will learn whether you are permitted to rent part of your home. If you don’t own your home and are a tenant, you will have to get written permission from your landlord/manager.
Then you need to decide how much you want to have someone else in your space. Renting a room long term can be hard. You would be sharing your home with a stranger basically. If you want to make a bit of extra money, you could offer a room through AirBNB or whatever reservation software you wish to use, several days or weeks a month. You would basically only meet these tenants and they would be gone. But you would be responsible for cleaning and laundry and making sure your place is a bit upscale to get tenants. The rent (tariff) is paid upfront to you after AirBNB takes their cut, so you will get paid. If you decide you don’t like renting your place to strangers, you can always quit. With a long term lease, you would be obligated to endure the lease period.
If you are planning on renting a separate space, like a single family home, whole condo, apartment, you need to start by learning what is and is not allowed in the neighborhood. I say that because many areas have prohibited owners from offering short term rentals because of the increased traffic, parking problems and strangers coming into the neighborhood. But if you find no restrictions, remember that when you rent an investment property through AirBNB or some other short term rental software, it will become a full time job to manage move ins and move outs, cleaning and supplying the unit, keeping up on repairs, baking cookiesfor arriving guests, etc. Many sub that work out to a short term rental property management company, but that cuts into your profits, of course. And you are dependent on whether you get the place rented. If you only get 50% occupancy per month you may not be able to break even on the cost of the rental. Property management for short term rentals is usually 25% of the rent collected because it is so hands on.
On the other hand, you can rent your property longer term. If you are in a resort area, you could rent for a minimum of 1 to 3 months. Or you could do minimum 6 months or 1 year leases. That business model gives you guaranteed income on which you can plan, as long as you choose good tenants who pay rent on time.
And finally, if you are in a high demand area or seasonal demand area, you can rent part of the year using a short term rental registration software and the other part of the year rent to someone longer term. Just remember that the cost is high every time you turn the unit.
So the decision is up to you. How much risk are you willing to take. How much time are you willing to spend. Finally, no matter what you decide, if you do invest in rental real estate, get a good software that allows you to advertise vacancies, gives a tenant screening portal, and does the accounting for you. The short term rental software products do not give you these features. I use Smart Property Systems. It is easy to use, inexpensive and has all of the bells and whistles you will need to be successful. Good Luck.
Have you ever thought about how change affects your life? How many of us embrace the idea of change? How many dread it? I am not talking about change that comes when you get dressed. I am not even talking about a change of scenery. Those kinds of change can be easy to take, unless the view is from behind bars and walls. Changing a diet can be very hard. Changing where you live can be stress inducing. Changing a job may be difficult for some. Changing the way you do your job may be even harder to accept.
Matathesiophobia= The fear of change. Have you ever started something brand new and realized that you don’t have a clue about what you are doing? Have you ever gotten physically dizzy or distracted from the task because you are having a hard time? It can be like that for new owners or managers of investment properties. Even seasoned managers can get into overwhelm at times when the work load piles up. Many are literally overwhelmed by the prospect of having to advertise for tenants, do tenant screening and write leases. But before we fall over the cliff in overwhelm, there is a better way. Using a quality software which is designed to be easy to use, where the work flows don’t let anyone make a mistake, is the real answer. Now that kind of change does not seem so hard. The subscriber/new landlord or manager can have a path to follow with success at the end of the road. When using the Smart Property Systems software, the steps for each task are lined out and the tools are right there on the dashboard for the investor/manager to use.
You have never used software before? Is that a hard change to overcome? Not really. Change can be easy to deal with, when there is a change of mind and good attitude. Relaxing into the new software environment can actually be exciting as the user discovers that everything is automated and all work is saved by the software. Just think. This change results in having all documents and tools at your fingertips. Simple organization at last!
Smart Property Systems offers property management software and it is designed to make the business of property management much easier for anyone doing that job. But hardly a day goes by that someone in the customer service department hears a complaint from a subscriber or maybe a free trial users saying that it is hard for them to change. After talking about it for a few minutes they realize that their real reason is fear of change. Once that fear is overcome, the whole prospect of having answers to all questions and problems that come up in property management which are at their fingertips, makes the new world of software becomes glittery and golden.
Smart Property systems has been doing business in the Property Management Software sector since 2004 and served over 20,000 subscribers. This company knows property management and understands the problems that repetitive tasks cause for the staff. Repetition can cause boredom and bored people make mistakes. The motivation and dream of the staff at Smart Property Systems is to provide automation for those repetitive tasks and make the business of renting well managed properties to deserving tenants easier and more profitable. Software does not make mistakes. That is change we can believe in.
But what about the change that comes in having to pay for software? There again, just how valuable is your time? When you get your properties and tenants into your subscription account and automate the rent collection, can you imagine how much time you will save every month? Why that could be a full time assistant salary saved. If you have no assistant, using SPS software will cut your time by two thirds. Remember, now all communications with tenants and vendors go through the message centers in each account portal, instead of having phone calls all hours of the day and night. Now notices are sent though the software via email and stored in all appropriate accounts. Some, like statements and late fee notices are automated, so there is really nothing you have to do. Rent week comes and goes and all statements are sent out, rents collected and accounting for those payments done by the software for you! You can look at the rent roll and see who has and has not paid. So now, what will you do with all that extra time on your hands? Maybe play some golf or tennis or go fishing? How about spending more time with the family?
Yes Change can bring stress but fear of change is really the main issue. Once that fear is overcome, then the change from manual management of properties to software driven management is a no brainer. Check us out at Smart Property System <https://smartpropertysystems.com>
Author: Timmi Ryerson
Smart Property Systems