Long-Term Apartment Rentals in New York City vs. Airbnb: To List or Not to List
When you own a property, you have options to generate stable cash flow. Renting is one of the most obvious ways to make money from your property.
NEW YORK, NEW YORK, USA, April 19, 2022 /EINPresswire.com/ — When you own a property, you have options to generate a stable cash flow. Of course, renting is one of the most obvious ways to make money from your property. However, some owners prefer to list their property on Airbnb as a short term rental option. However, New York City has strict guidelines for this home-sharing option. To list or not to list? This is the question we will address today.
Long term apartment rentals vs. Airbnb: the details
When it comes to long-term apartment rentals or listings on Airbnb, both have distinct pros and cons. When trying to make this decision, it’s best to carefully consider your choices and opt for the method that best suits your goals, lifestyle, and financial needs.
Long term apartment rentals
For a traditional rental ad, this is part of a long-term investment strategy that you are doing. This is to list the property for a rental term of six months or more. You are responsible for promoting your rental on sites like ApartmentLove and collect rents. While you can handle these tasks, some landlords choose to hire a third-party property management company to handle them for them.
For an Airbnb listing, this is a third-party platform that will help hosts list their properties for short-term use. These properties can include houses, rooms, apartments, villas and even yachts. When you register with Airbnb, they take care of promoting your listing and handling payments. Basically all you have to do is list your property with them.
Long-Term Apartment Rentals vs. Airbnb: Pros and Cons
When making a decision, it’s always a good idea to consider the pros and cons of each option. You need to consider what exactly you are looking for in this property: constant income? Maintain some use of the property? These are just a few things to consider when making your decision.
Advantages and disadvantages of long-term apartment rentals
If you are looking for a longer-term investment strategy, traditional rental properties offer more security. With long-term rentals, you have less turnover, which means you won’t have to spend as much time cleaning and maintaining your listing every time someone checks in. You will also receive a consistent payment, as you set the terms of the lease when signing it. This is year-round income for you, as it can sometimes be difficult to fill Airbnb rentals during low season.
An important factor to consider would be taxes. Any money earned on Airbnb is treated the same as the rest of your income, therefore subject to tax. However, traditional rental income is still subject to tax, but many concessions are offered to landlords. Landlords can deduct the cost of preparing the property for rental and maintenance from the rent money you collect.
On the other hand, you are locked into a lease contract. You must respect the terms of the lease, including the amount of rent until the end of the lease. You can’t change the terms of the lease and if you don’t like the tenants, you have to deal with them until the end of the lease. If things go wrong or the rent isn’t paid, you have to deal with the eviction process. And if you opt for a third-party property management company to handle everything, that’s an added cost to you.
Advantages and disadvantages of Airbnb
The biggest advantage of Airbnb would be the flexibility, as they are short term rentals. This gives the owner options as to when they want to make the property available. If you are looking to rent the property part-time, then Airbnb is a good option. You can also change the pricing and set different rates for different time periods, based on which time periods might be more popular.
Although it’s free, Airbnb charges a 3% processing fee. While any renter can damage your property, you might be more inclined to do so from short-term renters just in town for a weekend of fun and craziness. Income may not be compatible with Airbnb because you might have a busy season and everyone wants to be in New York, but you can’t fill it at other times. A long-term lease gives you consistent money each month.
There are many regulations in place for home sharing, especially in New York. You want to make sure you’re doing this legally before you list on Airbnb. With short-term rentals, you must also clean and maintain your listing after each use. Restocking of household essentials and a lot of maintenance compared to a long-term rental.
In the end, it’s really based on what you’re looking for as a strategy for your income property. Which choice best suits your needs and when you decide, do it.