You have likely stayed in an airBNB or VRBO vacation home. As a surprise to many, the growth of short term rental (STR) properties is one of the fastest growing real estate niches in the world, with projected growth over 20% in the next decade.
Whether you are new to the world of real estate, or own long term rental properties, you may be wondering if STRs are right for you. In this article, we will offer the top 7 reasons that STR investors give for owning STR real estate.
- Increased Cash Flow. STRs offer investors the opportunity to increase their monthly cash flow. With inflation rates at historic highs, this is an attractive reason why many are investing in airBNB properties. (curious on calculating cash flow? See our article on common STR terms)
- Appreciating Assets. It’s no secret that owning real estate is one of the most popular ways to increase net worth through appreciation. Unlike cars, boats and jetskis, real estate tends to appreciate over time, offering savvy investors a chance to grow their net worth-all while having renters pay the mortgage.
- Tax Savings. With tax strategies like cost segregation and reporting “active losses”, smart STR investors are offsetting their income with the numerous tax advantages that come with owning STR properties.
- Diversified Income. Real Estate continues to remain one of the top opportunities to diversify income and grow a portfolio that is resilient against economic turbulence.
- Lifestyle Upgrades. Many investors purchase STRs in properties that they enjoy visiting. It is not uncommon to see STRs as opportunities to mix business with pleasure by enjoying your own vacation rental home while having others pay the expenses.
- Become an Entrepreneur. With modern technology, training, and STR services along with growing demand for STRs, many STR investors are turning in their traditional W2s in favor of being STR Proprietors.
- Maximum Freedom. While operating STRs is enjoyable for many, for some investors, accruing enough properties into a portfolio allows them to retire their W2 in favor of a slower lifestyle. Instead of running their own properties, they find property managers and enjoy an early retirement while continuing to passively build wealth over time.
Whether you are looking to diversify your income, enjoy a bit of leisure or save for the future, short term rentals remain an incredible opportunity to accomplish your goals. And while you are looking, don’t forget that strIQ is here to help you find profitable short term rentals, so that you can live the life that you dream.