Airbnb Vs. Long Term Rental In Annapolis: How To Choose The Right Strategy For You
Annapolis and its surrounding areas are beautiful, and undoubtedly why residents love living here. The area also has great historical significance as the capital of Maryland and boasts impressive homes.
The popularity of Annapolis because of its unique blend of dining, recreation, and waterfront fun has not gone unnoticed. Residents and visitors to the area often see investment opportunities for themselves through rental property ownership.
Perhaps you're considering buying an investment property? In that case, you might wonder whether investing in an Airbnb is the right step or if a long-term rental might offer more security and consistency. Here are some considerations:
Your Investor Personality
Much around investing begins with understanding your unique personality and mindset related to rental properties in Annapolis.
Are you someone who enjoys taking risks or do you prefer a predictable and dedicated outcome? Knowing your unique investor personality can help you determine what path is best for you.
When visualizing how to create rental income in the Annapolis area, you should understand that both Airbnb rentals and long-term rental properties achieve the same goal.
They both bring in more money for you. The significant difference is the time commitment.
With an Airbnb rental, you need to commit to keeping the property in high demand on an ongoing basis vs. a long-term rental where marketing the property tends to take place on an annual basis.
● The popularity of AirBNB has dramatically increased over the years.
● Travelers commonly seek them.
● These short-term rental options allow you to charge more per night than you would a long-term renter.
● If you invest the effort necessary to generate interest on an ongoing basis, you can make a lot more money.
Fun fact: The average Airbnb host made $44,235 in host earnings last year.
● Marketing the property is an ongoing investment of time and money.
● Keeping the home clean, meeting guests, and overseeing online client reviews requires a dedicated effort.
● Tenants only stay for a short period potentially leaving you with utility bills that are higher than usual.
● You will also have cleaning expenses if you want to avoid taking this responsibility on yourself.
Long Term Rental
● Tenants treat it more like their home; they clean the place themselves, so you don't have to.
● With high-interest rates, some would-be home buyers are turning to rentals instead, creating a great demand.
● Consistency and predictability with your income can be expected.
● Spend less time and money marketing the property.
● You can raise rents as the market demand increases.
● You may need to oversee potential evictions if you don't screen your tenants well.
● You may not enjoy being a landlord and dealing with tenants.
As real estate professionals who know the Annapolis rental market well, we recommend scheduling some time with us, to discuss your investment goals and allow us to review both options in greater detail to help guide you around the best possible decision.
Contact us today to get started.