The Pros and Cons of Short-Term Rentals in Utah

Thanks to the state's booming tourism industry, short-term rentals are becoming increasingly popular in Utah. However, before investing in a short-term rental property, buyers need to consider both the pros and cons. Here are a few things to keep in mind.

Pros:

1. Extra Income: One of the biggest advantages of owning a short-term rental property is the additional income it can generate. Short-term rentals can command higher nightly rates than long-term rentals, allowing owners to increase their revenue.

2. Flexibility: Short-term rentals are often more flexible than long-term rentals. Owners can block off dates when they want to use the property themselves, or rent it out for short periods of time when it's not being used.

3. Location: Short-term rentals are often located in popular tourist destinations, giving owners the opportunity to own property in highly desirable areas.

Cons:

1. Mortgage: Obtaining a mortgage for a short-term rental property can be more challenging than for a traditional long-term rental property. Lenders may require a higher down payment and may also have stricter underwriting requirements.

2. Neighborhood: Short-term rentals may not be a good fit depending on the neighborhood. Some homeowners associations or local governments may not allow short-term rentals, and neighbors may not appreciate the frequent turnover of guests.

3. Management: Short-term rentals require more management than long-term rentals. Owners will need to clean and maintain the property between guests and handle key exchange and guest communication logistics.

A Final Verdict

In conclusion, owning a short-term rental property in Utah can be a great way to generate extra income and own property in desirable areas. However, buyers should carefully consider the pros and cons before investing in a short-term rental property.