If you're a real estate investor with a short-term rental property in your portfolio, you may be sitting pretty right about now. This summer, the demand for vacation rentals has escalated now that travel restrictions have been lifted across states and a boosted economy is making it easier for more people to make plans.
Throw in the fact that school's out for the summer and that many parents with unvaccinated children feel safer booking private vacation homes over hotels, and it's a great time to own a short-term rental.
But what happens when the summer rush tapers off? Once school starts up again and the weather begins to cool, travel demand could start to wane. This may especially hold true if cold temperatures fuel a surge in COVID-19 cases and force states to impose travel restrictions once again.
In fact, you may be thinking of selling your short-term rental once summer comes to an end. Home prices have soared on a national level, so if you list your property in the near term, there's a good chance you'll manage to command an attractive offer for it. But while that opportunity may exist, there's another opportunity you may be overlooking -- one that should lead you to hang onto your rental home longer.
The remote work trend could mean added revenue
For the past year and a half, a large chunk of U.S. employees have been doing their jobs remotely, and it's only now that some companies are finally starting to call workers back to the office. But many companies aren't going that route. Instead, they're allowing employees to continue working remotely on a long-term basis.
Remote work can be beneficial to employers because it has the potential to save them a lot of money on office space. Also, remote work opens up talent pools. Once companies aren't forced to limit their new hires to a certain geographic region, it can lend to more diversity and a greater wealth of knowledge across employees.
Of course, the ongoing remote work trend is bad news for investors with office real estate investment trusts (REITs) in their portfolios. But as a short-term rental owner, it means you have the potential to make a lot of money in the near term.
Why so? As more workers get the green light to do their jobs remotely on a permanent basis, those workers may be inclined to try out different cities before settling on a long-term home. And those same workers will need a place to crash for a couple of weeks at a time while they explore different areas. That's where your rental comes in.
The Millionacres bottom line
There's no need to assume that once the summer rush is over, bookings will automatically start slowing down. Thanks to the remote work trend, you may find that the demand to rent your property remains high as workers all over the country attempt to figure out which city or area to call home.
Another thing to consider is that while travel tends to slow down after the summer, it shouldn't die out completely. And there are still plenty of people who'd prefer an entire place to themselves over a hotel room any month of the year. As such, you shouldn't be so quick to think about listing your rental just yet -- even if there is the potential to command a higher-than-usual sale price for it.