I can still hear my mom’s response when I told her my intentions of hosting guests on a short-term basis rather than a typical 1-year lease term.
“Vacation rental? All those people coming and going? They’ll wreck the place!”
My mom’s argument was the same one many people have when comparing these two rental strategies. She saw the rapid rotation of short-stay guests as a recipe for faster property depreciation. Rather than see the place as “home”, short-termers (rapid renters, as I call them) may not treat the house with respect, but with a “not my house, not my problem” attitude that will lead to carelessness and damages. While her logic made sense on the surface, I have actually found the opposite to be true. In fact, because of the nature of the short-term stay and the platforms that make it possible, I trust my assets in the hands of short-term renters much more than those of long-term tenants. In this post I will explain what I mean.
The Tenant-Landlord Relationship
The Typical Lease Term
In my experience renting 1-year apartments, I saw the landlord/staff on three occasions per lease in my unit; at the beginning of the lease, the end of the lease, and on the few-and-far-between instances of mishaps that were severe enough to warrant a maintenance call. “Severe enough” is important to note – I wasn’t calling maintenance to patch a small hole or inspect a spot of mold in the shower. The “it’s just a rental” mindset was in full effect and I only blew a whistle when I felt that my standard of living was hindered or that my rent money was being squandered by negligent upkeep.
When damage was my own fault, I certainly avoided telling the property manager, and the risk of losing my security deposit was usually so far off in the distance that it dampened the urgency for action on my part. At this point, it’s likely easy to imagine how year-to-year renters can lead to deprecation of a property at a noticeable rate.
Renting in The Short-Term
At the other end of the spectrum, the interaction between the rapid renter and the home owner (or property manager or cleaning professional) is just as regular as the guest turnaround. When a guest checks out after their weekend stay, my cleaning partner is in the door within the hour to get the house ready for the next guest. Part of her process, of course, is to be my eyes – Inspect the condition of the property and its furnishings and ensure nothing is out of the ordinary. This both makes sure the place is ready for the next guest and, by doing this thorough inspection between each guest, it allows me to pinpoint the culprit of any guest-caused damages. Then, I can file the appropriate claims with the listing platform, if necessary.
The Nature of The Short Stay
When going on a quick trip – whether for work, play, or personal reasons – staying in and making yourself at home is not usually the main item on the agenda. There are things to do, people to see, and foods to eat. Though the front door may get a workout, many of the amenities of the home will likely see less use. Most of my guests don’t touch the oven, open the windows, or spend much time sitting on the couch watching TV, for example.
Social Feedback and The Digital Reputation
A huge motivator in all aspects of life is how we are perceived by others. Social media and the internet have, of course, amplified the extent to which others can judge us..
Airbnb and VRBO, like many other marketplace platforms, encourage the rating of the people with whom you have recently done business. Following a checkout, both the host and the guest are asked to review their experience throughout the transaction, letting others on the platform know what to expect when interacting with this individual (each not being able to see the other’s review until theirs is complete, to avoid retaliation). Fear of a bad review can make even the rudest homeowner a pleasant host and, similarly, the slobbiest vacationer a fantastically clean guest. If a guest causes damage to my house, and my cleaning lady reports it to me, it has just put a blemish on their online reputation, hurting their chances of being accepted as a guest by a future short-term host.
But What About Parties?
It’s true – Many people search out Airbnb properties with the intention of throwing parties – drinking, playing loud music, and cramming many more people into the home than are allowed in the listing. While this is certainly more likely to happen in some areas than in others, it’s important to be aware of the risk and the things you can do to prevent it.
Of course, you should say “No” when the platform asks if events are allowed in the home when setting up your listing. It should be no surprise that this rule might not be enough to deter a group of college kids on Spring break… Luckily, there are a few other measures you can take to protect your property.
Companies like Noise Aware have created devices that monitor the noise level in a space. These gadgets are small, sleek, and usually plug into an outlet. They alert you if they detect noise elevating to boisterous levels. If the levels stay up long enough (or late enough) to cause you anxiety, you can call the guests to inquire about their activity and ask them to be courteous. Feel free to blame it on a “call from a neighbor” if you don’t want to seem like “big brother” (though I believe you do need to disclose any monitoring devices in the listing). You can buy yours here. This monitoring gives you the additional benefit of staying on the good side of the neighborhood, preventing complaints to the city about the “party house on the block”.
Doorbells with cameras integrated in them can offer a way to see who is coming and going, right from your phone. While you cannot put cameras inside the home to watch your guests, you can find out if a zoo of people is at the door, allowing you to shut down a party before the first keg stand. Ring offers a few options.
Every real estate investment includes some kind of damage risk and it is important to be prepared, both financially and emotionally, to handle the upkeep and unexpected maintenance of your property. However, it is my strong opinion that the argument of many (my mom included) that short-term rentals lead to more damage than long-term rentals is misguided and mitigated via the reasons in this post.