There are pros and cons to both options, so let’s dig in to find out more so you can find the perfect renting solution for you!

Long-Term Versus Short-Term Rentals

Short-Term Rentals Pros and Cons

Short-term rentals, also known as vacation rental property, entail renting to guests who stay for less than a month. Their rental agreements are by the day or by the week, and the property must be furnished.

Pros of Short-Term Rentals

• Less wear and tear: Vacation rentals are used far less than long-term rentals, resulting in less damage to your property. You also don’t have to worry about guests wanting to paint or change things. By being able to inspect property between guests allows owners and managers to keep up on maintenance and keep little issues from becoming big ones.
• More money: Even though you might have tenants for fewer days of the year with short-term rentals, studies have shown short-term rentals can increase your revenue by between 30% and 100%! You can charge more because people won’t be there for very long, so they’re willing to pay a higher price. Plus, you can fluctuate your prices according to the season.
• Personal Use: This may be the best part of short term-rentals–you get to use it for your own vacation whenever you want! You can block off the days you want it and rent out the rest.

Cons of Short-Term Rentals

• More maintenance: If you don’t have a rental property manager to help you with this, it can be difficult to keep up with repairs and regular cleanings, especially if you don’t live in the area.
• No guaranteed income: To get a lot of bookings, you either need to be marketing savvy or have a manager who is. There’s a lot of competition out there, so you need to set yourself apart!

Long-Term Rentals Pros and Cons

Whie short-term rentals are paid by the day or week, long-term rentals are paid by the month. Typically, the owners are paid at the beginning of the month.

Pros of Long-Term Rentals

• Consistency: If you value consistency, long-term rentals might be for you. You may earn less money overall, but at least you know how much income to expect. You also don’t have to do as much paperwork when your tenant stays longer.
• Less responsibility: With long-term rentals, you don’t have to furnish the home or pay utility bills, so it’s good for a less hands-on owner.

Cons of Long-Term Rentals

• Less flexibility: You won’t be able to use the property for your own vacations on a whim, because tenants have the place for months at a time.
• Less control: With less responsibility comes less control. You or your property manager won’t be able to check on things like maintenance and security as often.

Interested in Short-Term Property Rentals?

If you want to make the most of your rental property investment, you need a manager who can improve your marketing while taking over the day-to-day responsibilities of renting. Call or email our office today to find out if we’re the right match for you!

MountainTown VRM- Vacation Rental Management

110 E Broadway, st 203

Missoula, MT 59802

(406) 369-3080

www.mountaintownvrm.com

Whether you’re a long-time owner looking for a different policy or a newbie shopping for your first, these are the most important things to know about vacation rental policies.

What You Need to Know About Vacation Rental Insurance

Not all vacation rental policies are created equal

Every vacation rental insurance policy is different. That’s why you need to shop around to find the perfect one for your property. Take your time researching companies and coverage options until you’re sure you’ve found the perfect fit.

Generally insurance policies will vary by:

• Whether you own a house, condo, apartment, villa, etc.
• How often it is rented out
• What level of coverage you need

And of course, it’s important to consider price, because overpaying for a rental insurance policy can seriously cut into your profits. So make sure not to buy excessive coverage because insurance agents might try to sell you more than you need.

What vacation rental insurance covers

When weighing your policy options, there are three main things to keep in mind:

1. Liability: How the policy protects your guests
2. Property and belongings: What kind and extent of damage is covered
3. Rental income: How your income is guaranteed under extenuating circumstance

If a guest gets hurt on your property, what happens? Will you be protected? The right rental insurance policy should cover legal fees and liabilities that follow if a guest gets hurt on your property.

If a guest damages your house or belongings, a good rental insurance policy will cover replacement or repair. If the damage is extensive, you could potentially lose income so it’s best to choose a policy that will cover most of your income while repairs are being made.

Platform policies versus rental insurance

If you’re new to owning a vacation rental property, you might think that the insurance you get through platforms like Airbnb and VRBO are enough to protect your house. But actually, these platforms only offer primary liability policies. That means things like intentional damage, defamation, and assorted property issues are not included in the coverage!

Simply put, platform policies are not enough–you need real vacation rental insurance.

Vacation Rental Insurance–The Smart Move

Every vacation rental property owner needs a good insurance policy to protect themselves and their guests. Take your time and do the research before you commit to a policy. They are all unique, and it may take some shopping around to find the perfect fit for your property. But if something ever happens to your house or your guests, you’ll be so happy that you put in the work now.

If you have any questions please don’t hesitate to reach out us!

MountainTown VRM: Vacation Rental Management, serving Missoula, MT and surrounding areas.

MountainTown VRM

110 E. Broadway, St 203

Missoula, MT 59802

(406) 369-3080

www.mountaintownvrm.com