When the economy is being rocked by a global pandemic, it’s not easy to figure out where to park your money to keep it safe. The stock market may seem like it’s doing well right now, but how long will it last?
One of the best ways to invest in any economy is real estate. There is usually still demand for housing even when the economy is not looking good and as soon as it rebounds, you are in an excellent position to take advantage of the money flowing around.
But, when the economy does rebound, is it better to use your property for rentals or to do long or short term rentals? It’s not an easy answer so you’ll need to take a look at a few factors to help you decide.
Short term rentals
If you have ever traveled for business, then you no doubt have stayed in a short term rental at some point or another. These apartments, like the short term rentals Toronto seen here, are usually well positioned near the business centers and are designed with the business traveler in mind.
If you buy an apartment near a downtown where there is a convention center, for instance, then you should definitely be looking into this type of purchase. You’ll need to design it in such a way that it can command a good price when rented. And you’ll also need to heavily market it to make sure you have it rented out for long periods of the year.
When compared to AirBnb, you will likely get more money from your investment because business travelers will use their expanse account to pay for it. AirBnb users are looking for deals and want to pay as little as possible while still having the most convenience.
Another benefit is that you don’t need to screen your renters like you would have to do with a regular rental as the business travelers are not going to try to get out of paying, or wreck the apartment.
Using AirBnb can be very lucrative in many ways. In fact, there are people who make a living just from their AirBnb rentals. There are a few factors to consider, however, as to whether you will do well or not.
To really make money with AirBnb your apartment or house needs to be close to attractions for tourists or convenient for business travelers. If you are in a suburb without any links to a good public transportation system, then you aren’t likely to get many renters.
If you do live close to the action, then you’ll likely do well as being on the platform will help users find you so you don’t have to spend much time marketing your property listing.
Having a user ranking with reviews left by other owners is also a great feature. You are able to screen your prospective tenants beforehand and deny the rental if they have a bad rating. You may find the odd rotten apple once in a while, but you do have some control over who stays in your property.