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Long Term Rental Property VS. Airbnb – Which Option Is Better for Owners in 2019?

Are you planning on buying a but aren’t sure if you should turn it into an Airbnb, or long-term rental? This is an understandable rental property question to ask because 2018 was a tough year for Airbnb and many people don’t know what 2019 will hold for the global company.

In this article, we will provide you with several points to consider before choosing to turn your rental property into a long-term rental or Airbnb.

Acceptance of Airbnb’s Is Changing

Although Airbnb has been a major hit since it’s inception, many cities and towns across the United States have been making life more difficult for them because of the obvious reason that Airbnb’s short-term rentals reduce the supply of long-term rentals in California and other states.

For example: Under a new law in San Diego, CA owners of Airbnb’s must now pay a 10.5 percent transit occupancy tax that’s supposed to be paid to the city.

One thing for certain is that unless the supply of short-term rentals increases in cities like San Diego, we can expect to see Airbnb owners hit with more taxes and this could either motivate them to sell their properties or turn them into long-term rental properties.

Owning an Airbnb Isn’t Always Fun and Relaxing

Compared to owning long term rentals, owning an Airbnb rental property isn’t as always fun and relaxing as some people would make it out to be.

When you own an Airbnb unless you hire someone who specializes in Airbnb property management, you will have to market your property online yourself, schedule reservations and keep your Airbnb stocked with hotel style amenities that will motivate people to potentially stay in your property or choose a hotel.

Besides the obvious work that comes with owning and managing an Airbnb, it’s also important to consider that unless your Airbnb is located in an ideal vacation destination, you could face it sitting vacant for months at a time and this means that you will only lose money on that property.

Why A Long-Term Rental Property Makes More Sense

Yes, owning an Airbnb may have made perfect sense for some owners 5 years ago but in today’s changing times where there’s more of a demand on rentals than ever before it makes sense for every owner to be invested in long-term rental properties.

With a long-term rental, you will potentially have long-term income for up to 12 months at a time or more and when you choose a property management company to manage your San Jose rental for you, you can truly enjoy the benefit of passive income that will come from your long-term rental.

Contact Property Management in San Jose, CA

To learn more about our quality management company contact Utopia Management today by calling us at (800) 294-4656 or connect with us online.

Elly Johnson stands at the forefront of content research and online branding at Utopia Management. As the Content Marketing Manager, she delves deep into understanding local real estate and rental markets, fueled by her passion for travel and keen research skills. Elly is dedicated to empowering individuals with the knowledge they need to make informed decisions about where to reside. A proud alumna of the University of South Florida, located in the vibrant heart of Tampa Bay, she holds a Bachelor of Arts in Psychology. Her academic background and extensive travel experiences uniquely position her to provide insights that resonate with diverse audiences.

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