Transitioning Your Airbnb Short-Term Rental to a Long-Term Rental
Moving from short-term rentals to long-term rentals in the Dallas, Fort Worth metroplex
Now that the Fort Worth, TX Short-Term Rental ordinance has been in place for a bit - in the areas where short-term rentals are permitted, per the zoning restrictions – property owners are getting used to the ordinance, and many are deciding to avoid the hassle of the registration, management, and reporting required to operate.
Owners are asking themselves if they should sell their short-term rental property or convert those properties to a longer-term rental.
Below are a few benefits and a few considerations when deciding if long-term rentals are an appropriate investment strategy for you.
Benefits:
- The ability to generate monthly income.
- Potential long-term wealth creation as the home value appreciates over time.
- As a landlord, certain annual expenses may qualify as tax deductions*, including repairs, operating expenses, and property tax, among others.
Considerations:
- Calculate potential ROI. Will the rental income cover or exceed your mortgage and any additional financial obligations such as HOA and property insurance?
- Consider the time commitment and how much you want to be involved. Who will manage the property? Does it make sense to hire a property management company to provide leasing, rent collections, tenant communications, and maintenance services, or can you manage this all on your own?
- Are you up to date and comfortable with local codes, zoning, Fair Housing, and understand landlord-tenant law? This is especially important when reviewing tenant applications, conducting evictions, etc.
Set yourself up for success! There is no right answer; it all depends on your personal situation. If you would like more information about the long-term rental strategy, we would be happy to help! At Locke Property Management, formerly League Property Management, we have many Fort Worth rental owners making the switch, and we can help you too! Contact us to chat with one of our specialized property management team members today!
*As always, we recommend you speak to a tax professional like https://metroplextax.com/ for tax advice and tax strategies.
