In Philadelphia, short-term rentals are considered limited lodging rentals with up to a 30-day maximum length of stay. This type of rental property is much different than leasing a long-term property.
If you prefer short-term over long-term rentals, then you need to consider these differences and how this affects your ROI, costs, and compliance.
Start with this guide to knowing how to set up, maintain, and profit from a short-term rental property.
1. Costs and Expenses
As a temporary rental, your property will see a lot of turnover. This requires continuous services like cleaning and maintenance as well as the collection of fees and identity proofs from residents. You may even need to go through a verification process for guests, even if it is a vacation property.
Additional costs include licensing and permits for conducting a short-term rental business in Philadelphia. Using a short-term rental management service is an additional expense, but it will make your job easier and help you increase your profits.
Lastly, you have to consider the vacation rental property taxes. Short-term rentals get taxed just like a hotel, which is 8.5% a month of your rental income. Be sure to factor this cost into your monthly income and expenses budget so you know exactly how much money you are making each month and how much rent to charge.
2. Regulations and Laws
New short-term rental zoning and licensing requirements in Philadelphia passed in 2021 and began taking effect in January 2023. This was a reaction to the poor conditions of rental property in the city, which concerned permanent residents.
As a landlord, these new regulations make it more difficult to rent your property without assistance. Using a property management company can help you get the proper licensing and zoning permits to help you continue your business.
3. Appealing to Guests
Vacation rental management services can also assist with keeping your renters happy. Property Management Greater Philadelphia, we conduct a rental property analysis to see how much you can make. Then you can make adjustments to your decor, amenities, and marketing strategies to make it more appealing to guests.
Properly managing your rental will also ensure your guests experience the best hospitality. This will get you essential reviews and recommendations as well as returning tenants. Include amenities like complimentary tea and coffee, filtered water, bath towels and toiletries, and travel recommendations.
With short-term property management, you can make the check-in, check-out, and payment process seamless for your guests.
Get the Most Out of Your Short-Term Rental
Your short-term rental should give you the highest ROI possible. To do so, you need to put in the work to see results. Luckily, a property management service can take much of this work out of your hands while being proactive and improving efficiency. This will lead to more tenants and more value for your property.
Start by contacting us today for a free consultation with one of our qualified representatives.