Investing in a short term rental (STR) property can be a lucrative venture, but managing expenses is crucial to maximizing your profits. While common tips for finding a lucrative STR include identifying the best sized home in the ideal location with enticing amenities, there are unexpected property attributes that can significantly reduce your costs. Don’t forget to pay attention to these unique features when searching for your next short term rental investment. Many of these property features will save you money or decrease your management load.
1. Zero-Scape Your Way to Savings
One often overlooked expense in property management is lawn care. Opting for a property with zeroscaping or low-maintenance landscaping can substantially cut down on your outdoor upkeep costs. Drought-resistant plants, gravel, or artificial turf can be attractive alternatives that not only save you money but also appeal to eco-conscious guests. You’ll save money on your water bill, and your lawn care services. Plus, less lawn care means less time worrying about scheduling mowings and routine maintenance for items such as an irrigation system.
2. Solar-Powered Savings
Consider properties with solar panels to harness the power of the sun. While the initial installation cost is often steep, the long-term savings on energy bills can be substantial. Are we saying you should go install solar panels on all your STR investments? Absolutely not, but if you find a home that already has them that can be a substantial bonus. As an STR owner you’re on the hook for utility costs, so if you can reduce or maybe even eliminate that electricity cost line item you will increase your net income.
3. Energy-Efficient Upgrades
Energy-efficient upgrades may seem like an obvious choice, but it's worth emphasizing. In the same way solar panels reduce energy cost expenditure, energy-efficient updates also contribute to lower utility bills. Look for properties with appliances that have high Energy Star ratings to ensure long-term savings on electricity and water expenses. Also, look for homes that are well insulated to reduce electricity expenses associated with keeping your STR the appropriate temperature.
4. Smart Home Features
Investing in smart home technology can lead to long-term savings. Automated thermostats, energy-efficient lighting systems, and smart security features not only allow you to reduce utility costs, but they also help you remotely manage and monitor your property. This can result in lower utility bills and lower management costs. For example, a smart home lock that automatically creates a new code with each new booking removes the need for a human to perform this task.
While the location and size of your short term rental property are undeniably crucial factors, delving into unexpected attributes can unveil hidden savings. From landscaping choices to advanced technology, these elements can significantly impact your bottom line. When scouting for your next investment, consider these unique features that not only appeal to potential renters but also contribute to a more cost-effective and sustainable short term rental venture. By thinking outside the conventional property investment box, you may find yourself on the path to unexpected savings and increased profitability. Need help identifying the perfect STR investment in Austin? Contact us today!
