Wondering whether it is best to invest in short term rental property or a B&B? The former is a broader term for a wide range of rentals, including self-catering apartments, villas, holiday homes and cottages that are rented out entirely. B&Bs, on the other hand, are much like guest houses, offering bed and breakfast to guests. While, technically, both cater to short term markets, there are a few differences worth noting.
How does each type of property compare? And, more importantly, what do you need to know before making the choice between short term rental property and B&B? Keep reading to find out.
Short Term Rental Property or B&B – Which is The Best Investment?
Before you make your decision, it will help to get a better understanding of what each type of investment has to offer. This will help you decide whether a short term rental property or a B&B is the right choice for your needs. Some things to consider include the following:
- Most short term lets include the entire property. This means that guests have full use of bedrooms, bathrooms, living rooms, dining rooms, kitchens, gardens, swimming pools, balconies, garages and any other room within the property. Guests rent out the entire unit and enjoy the luxury of self-catering. There is no one on site and managers are typically virtual. Some rentals may offer housekeepers, butlers or other staff however.
- B&Bs, by their nature, include a single room. Guests pay for bed and breakfast. There are usually anything from a few to a number of rooms within the property. Living rooms, dining rooms, gardens, swimming pools and other facilities are shared between guests. There is often a manager on site at all times. Although guests enjoy breakfast, they do not receive any other meals unless by previous arrangement. They do not have access to the kitchen, either. Many rooms will include basic appliances such as kettles, coffee makers, and bar fridges. Some are en-suite, while others have shared bathrooms.
At the end of the day, there are a few things that you should take into account to decide which is the best option. Questions to ask yourself include:
- Do I want to be there every day, all day for guests?
- Am I able to provide a good breakfast for guests each morning?
- Can I equip each room with basic equipment?
- Can guests expect a decent amount of privacy?
- How will communal spaces be shared?
- Will I hire a dedicated manager to run my short term let?
- Am I more interested in supporting my income or running my property as a business?
- What zoning laws apply to both types of property in my area?
- How will I proceed with marketing my property?
Once you have answered these questions, it should start becoming easier to know which option to choose. Both types of properties have their advantages. From a logistic and income potential, one of the biggest advantages of short term lets is that they have a far higher income potential on a nightly basis. They also require the least amount of stress – especially if you hire a dedicated manager to run your rental on your behalf.
To find out more about working with a professional short term rental manager, contact Totalstay today. We will arrange an evaluation of your short term rental property, and help you determine the best way to get results.