One of the hottest arguments among Real Estate Investors across the Monterey County area in 2020 is if long-term or short-term rental properties make a better investment?

This is an understandable question to ask because, the demand for rental properties has never been greater but, depending upon whom you ask, there’s always going to be some investors who will favor long-term versus short-term rentals.

Why Not Invest In Short Term Rentals?

Yes, it’s true that short term rental properties like Airbnb’s continue to be in demand across the Monterey County area and much of California but in 2020 short term rental properties have taken a greater hit than ever before. Why? The answer is simple, every short term investment property is a rental that could potentially be a long-term rental property.

As of February 2020, more cities across California are creating legislation and laws which were aimed at slowing down or discouraging investors from turning their rental properties into short-term rentals.

The good news is that the effort to slow the spread of short term rental properties across California, especially along with coastal cities, has been proven to be effective but those efforts can only go so far as we still have a large amount of active short term rentals Statewide.

If you plan on investing in a short-term rental property in California, you can expect there to continue to be opposition against short term rental properties which may include higher fees and taxes for years to come

What About Long Term Rentals?

If you’ve been following the rental market in California over the last 10 years there’s no doubt that we need more long-term rental properties to come to market.

Sadly, following the economic recession of 2008, construction of long term rental properties across California has been a lot slower than it’s been in the past but the good news is that more long term rental properties are coming to market, even though it’s taking more time than expected.

For those investors who plan on investing in long term rental properties across California, they can expect a consistent demand for their rental properties that doesn’t show any sign of slowing down in the foreseeable future.

With the adoption of Statewide rent control, including new standards like AB 1842, the reality is that for those investors who own rentals across the state, rental real estate will still continue to be a very profitable venture in spite of the efforts of some politicians to move the rental market more in favor of rent control Statewide.

Contact 36 North Property Management

To learn more about short-term rentals versus long-term rentals, or to speak with us about the property management services that we can offer you, contact us today by calling (831) 484-4604 or click here to connect with this online.