Rental properties in Healdsburg do well for their owners whether it’s a short-term vacation home or a long-term rental property. However, with the changes that we’ve seen since the COVID pandemic, many vacation property owners have considered making their homes available for long term leases of a year or more. People aren’t traveling as much as they once did, and the entire hospitality industry has suffered as a result.
If you’re struggling with this decision, we have some things for you to think about.
Are You Spending Time in Your Vacation Home?
If you’re spending part of the year in your vacation home, or taking weekends and vacations there, converting to a long-term rental might impact your lifestyle. Think about the flexibility you want to use the home yourself or to lend it to friends and family members. When you have a long-term tenant in place, you won’t have the option to enjoy the property during the lease term.
However, if you don’t typically stay there and you aren’t going to need the home for a few years, a long term rental agreement will provide you with more stability and regular income.
Avoiding Vacancy Loss and Stress
Vacation rental homes always have periods of vacancy, and it’s something you expect as an owner. However, if there are more vacant days than occupied days, you stand to lose some money on the property. When extended vacancies make you nervous, consider renting it out to long-term tenants. When you have a stable renter who has signed a one-year lease, you won’t have to worry about an empty property. You’ll receive routine rental income and you will have someone at the home to make sure there isn’t any deferred or unreported maintenance that’s causing your investment to deteriorate.
Prepare for a Different Rental Amount
When you want to earn a steady, consistent income, a long-term rental is better, and you should consider converting. However, you’ll have to prepare for a lower rental amount per night. You will charge less per month than you would with a short term rental, but you know you can count on a certain amount of income every year.
Make a Plan for Furnishings
Your current vacation home is likely furnished, and many long-term tenants are looking for a home without furniture so they can move in their own. Think about what you’ll do with your beds, sofas, tables, linens, and kitchen supplies. All of these things will have to be moved out if you decide to transition into a long-term rental.
As you make this decision, you’ll want to think about where you stand right now and where you expect to be in a few years. The laws that govern long-term rental properties are strict in California. It may be difficult to turn your vacation home into a long-term rental only for a year or two, and then switch back again.
We handle both short-term vacation rentals in Healdsburg as well as long-term homes for residents. We can help you weigh the challenges and rewards for your specific rental home. Contact our team at Healdsburg Property Management.