Turn your investment property into a nightly rental to make more money

As a real estate investor, you’ve probably heard about today’s newest opportunity called nightly rentals. Nightly rentals are exactly what the name suggests: people rent your property by the night instead of by the month. While this prospect certainly requires a bit more effort, the increase in profits could be as much as five percent. 

If this sounds like something you’d like to hear more about, keep reading as we discuss three ways to make more money with nightly rentals. 

1. Decorate With A Specific Theme Or Design

As with any hotel, motel, or other by-the-night rental, your nightly rental property should be decorated with a specific theme or design. The décor of the home could mimic the local community that surrounds it, or it could be something unique and inspiring. 

Whatever décor you choose, be sure it instills a sense of comfort, warmth, and hominess that your customers will appreciate. 

When shopping for furniture and décor for your home, try to find good quality pieces that don’t look cheap. This doesn’t mean you have to buy brand-name items but do try to find things that will hold up well and be comfortable at the same time. 

2. Hire A Management Company

Because your rental property is being rented by the night and not by the month, someone will need to “turn it over” more often. You can attempt to do this yourself, but with the drastic increase in profits, you’ll be able to afford to hire a management company to handle all the leg work for you.

From managing your nightly renters to cleaning and preparing the home after each, you’ll still come out way ahead compared to the monthly rent you used to bring in. 

3. Location Matters

Location, location, location – it’s more than just a business mantra when it comes to nightly rentals. To make the biggest profits possible with your nightly rental, it should be located near attractions that people frequent. Beaches, ski resorts, political events, etc. are excellent locales for a nightly rental. 

If your property is located in the right area and it has an aesthetically-pleasing décor, you could rent it for as much as $1,000 a night and probably keep it occupied nightly nearly all year long. 

More and more real estate investors are turning from monthly rentals to nightly rentals in an effort to increase the profitability of their investment properties. While nightly rentals require a bigger up-front investment in terms of furnishings, necessities, and décor, the overall increase in profits can be as much as 2-5 percent more than a traditional monthly rental property.