How to generate more cash from your rental property

Airbnb Johannesburg

Have you got a beautiful rental property yet you’re struggling to find a tenant who will pay the rental you want? Or maybe your previous tenant has left and you’re struggling to find a replacement.

Have you considered doing short-term rentals instead? Now I know you might be thinking that it’s a whole lot more work and you’re simply not keen to manage guests checking in and out on a weekly basis but here are a couple of reasons why you should consider it.

3 Reasons to consider short-term rentals

  1. You typically make more money. If your property is consistently booked, you can expect to make 10%-30% more net cash flow each month by doing short-term rentals instead of long-term rentals. I personally rent out my apartment in JHB on this basis and have generated approx. 30% more in cash flow over the past year than I would have been able to get doing long-term rentals.
  2. You still have the ability to utilize your property. If you like to use your property from time to time, you now have access to it when you need it and can rent out the balance of time that you’re not using it. This is obviously not possible when you have a long-term tenant renting your property. 
  3. You’re able to stay on top of the maintenance of the property. By having guests in and out of the property, your guests provide a great feedback loop on what needs to be maintained or fixed. Keeping your property well maintained is essential to ensuring that guests have a great experience and leave you a great review. This allows you to keep your property in showroom condition rather than having issues swept under the rug and having to do major repairs when long-term tenants move out. 

Now I know you might be sitting there thinking, “Yeah that’s great and all, but it sounds like a lot of work”. 

The truth is that it is more work than simply putting a tenant into the property if you’re managing it yourself. The good news is that with booking platforms like Airbnb & Booking.com, it’s never been more accessible.

Now if you have no interest in managing a short-term rental property, there’s more good news

You’re able to contract a property management company that focuses on short-term rentals who can manage everything from the booking platforms, to cleaning, to monthly reporting.

This means you can make more money from your property, still have access to it while ensuring that it’s proactively maintained to preserve the capital value, all while not having to do any additional work yourself.

If you’d like to explore a managed short-term rental solution for your property, click on this link to learn more about Euphoric Leisure’s industry leading solution that takes all the inconvenience out of short-term rentals and will have you making more money in no time.

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