Does Vrbo Do Long Term Rentals? A Beginner Investor’s Guide

Vrbo is a popular platform for short term rentals. But did you know that there are also Vrbo long term rentals available for those staying longer?

Home-sharing platforms like Vrbo and Airbnb started to gain popularity more than a decade ago. Many travelers prefer to book a short term rental stay rather than a hotel stay because the former is more affordable. Also, short term rentals offer amenities that make guests feel at home. With the platforms’ unique proposition, owners can expect lucrative returns.

Table of Contents

1. Pros & Cons of Allowing Long Term Bookings for Your Vacation Rental
2. Does Vrbo Allow Long Term Rentals?
3. How to Find the Best Property to Turn Into a Vrbo Long Term Rental

The short term rental market remains popular nowadays. In fact, most new investors want to try their luck in real estate by starting with a short term rental investment. Short term rental investors prefer to list their rentals on home-sharing platforms like Vrbo and Airbnb. It is because, the platforms offer efficient (and essentially free) marketing, aside from their broad user base.

What’s new about vacation rental investing today is that investors now can choose between catering to short term rental guests or those who plan to stay longer. Popular home-sharing platforms now offer a long term rental option for both hosts and guests. It makes it easier for investors to decide how to position their rental property on these platforms.

Deciding between short term and long term rental investing should be based on several factors, and thorough research is necessary. Also, the most optimal rental strategy will greatly vary depending on your location and the market demand. So, a proper real estate analysis is needed to help you make the right decision.

Pros & Cons of Allowing Long Term Bookings for Your Vacation Rental

Allowing long-term bookings for your short term rental properties comes with both advantages and disadvantages. It’s crucial to understand the pros and cons of offering long term rentals on your vacation rental property to determine whether or not it will benefit your bottom line.

Pros of Allowing Long-Term Bookings for Your Vacation Rental

Nowadays, vacation rental owners now can opt to rent out their properties for a longer period than just a few weeks. There are several benefits to such a setup, including:

1. Steady Income

Long-term bookings can provide a steady stream of income that you can rely on for a longer period compared to shorter-term bookings. Keep in mind that vacation rentals are highly seasonal, and there are times when the demand for vacation rentals is low. Usually, short term rental owners incur a loss during off-peak seasons.

2. Increased Occupancy

As mentioned, there is a high risk of vacancies and loss of income for short term rentals because of its seasonality. Long-term bookings can help to fill the gaps during the off-peak season when short-term bookings are less frequent. Allowing long-term bookings for your vacation rental can mitigate the risk of long vacancies.

3. Less Turnover

Since long-term guests are staying at the property for an extended period, there is less need for constant cleaning and maintenance that is typically required every turnover. It translates to reduced costs associated with frequent bookings, which means you can save on your overall operating expenses.

4. Lower Marketing Costs

If you rent out your vacation rental to long-term guests, you’ll see fewer vacancies, reducing your need to spend time and money on advertising and marketing efforts. Imagine getting your property rented for at least three consecutive months by the same guest—it means you won’t need to advertise your property for the next three months.

5. Reduced Management

With fewer check-ins and check-outs to supervise, long-term bookings can be easier to manage, as they require less communication and coordination with guests. On the other hand, short-term bookings require you to handle check-ins, check-outs, and guest coordination every few days or so, which can be time-consuming on your part.

Related: How to Find the Best Property Manager to Handle Your Rental Investments

Cons of Allowing Long-Term Bookings for Your Vacation Rental

If there are benefits to renting out your vacation rentals for the long term, there are also risks and drawbacks involved. As an investor, you need to understand such risks to help you know what is best for your business. Here are the downsides of allowing long-term bookings for your short term rentals:

1. Reduced Flexibility

One of the advantages of owning a short term rental investment is that it offers flexibility to the owners, which means owners can use the property as they see fit. However, allowing long-term booking for your vacation rental can limit your flexibility to use the property for personal reasons. You also need to wait longer until the term ends before you can make changes or renovations.

2. High Potential for Damage

With long-term guests, there is an increased risk of damage to the property as they are staying for a longer period of time. Long-term guests can cause more wear and tear—and since maintenance is less frequent, you can expect to address bigger issues at the end of the booking term compared to short-term bookings.

3. Missed Opportunities to Charge Higher Rent

One of the advantages of owning a short term rental is that you can charge a higher nightly rental rate during the peak season. If you rent out your property for the long term, the booking might overlap with the peak days, and you’ll miss the chance to earn higher income from high demands from short-term guests. 

4. Discounted Rate

Typically, most long-term bookings are advertised to provide a discounted rate compared to short-term bookings. The goal is to incentivize guests who book longer stays. However, while earning a steady income stream from long-term guests is beneficial, the discounted rate may significantly reduce your income-earning opportunity. 

Related: How to Calculate Rental Rate: A Beginner’s Guide

5. Legal Restrictions

There are some locations with legal restrictions on the number of days that a property can be rented out as a vacation rental, which may limit your ability to offer long-term bookings. Also, you might need a separate business registration to rent out your rental unit for a longer period. Depending on where you’re located, it may make the process longer and more complex.

Is It Worth Accepting Long-Term Bookings for Vacation Rentals?

As discussed above, long-term bookings for vacation rentals come with both benefits and drawbacks. It’s important to weigh these pros and cons carefully. Consider your own goals and circumstances as a vacation rental owner when deciding whether to allow long-term bookings. 

It’s best to study the market first to know if there are demands for long-term stays in your area. Remember that not all rental markets are the same, so conducting a proper rental market analysis is essential to help you with your decision-making process. In addition, you also need to evaluate the market so you can set the right rent estimate that can help maximize your returns.

If you decide to offer long-term rentals, it’s important to clearly outline your terms and expectations for renters to ensure a positive experience for both parties. Also, utilize a platform that allows both short term and long term rental bookings to maximize your investment property’s return potential. 

Does Vrbo Allow Long Term Rentals?

Vrbo, short for vacation rentals by owner, is one of the most popular home-sharing platforms known to both hosts and travelers around the world. If you’re one of those who ask the question, Does Vrbo have long term rentals?, then the short answer is yes.

Vrbo allows hosts to rent monthly rental apartments on top of its usual short term rental offerings. Travelers who plan a longer trip may opt to book a stay on Vrbo long term rentals rather than in hotels to save on cost. Booking a vacation rental like a regular monthly apartment is more cost-efficient for guests, and it is beneficial to hosts, too.

There are several advantages to booking Vrbo long term rentals aside from being cost-effective. Guests get to enjoy amenities that offer the comforts of home, including full-functioning kitchens, HVAC systems, washers and dryers, and entertainment facilities like WiFi and televisions. Other Vrbo vacation rentals also offer facilities like gyms, saunas, swimming pools, and hot tubs. 

Tips for Setting Your Vacation Rentals for Vrbo Long Term Stays

To list a vacation rental for long-term stays on Vrbo, you must meet certain requirements and follow specific guidelines. It’s essential to do your research and know the local rules to ensure that you remain in compliance with the law. Moreover, you can use the following tips to help guide you:

1. Set Minimum Stay Requirements

If you want to accept long-term bookings for your vacation rental property, you need to set the minimum stay requirements on your account portal. Usually, long-term stays are a minimum of 28 nights; other hosts require at least three months’ booking.

2. Set Pricing and Availability

You’ll also need to set a monthly rental rate for your property (usually, monthly rates are discounted compared to per-night bookings). In addition, you must also make the property available for the entire length of the stay.

3. Provide Detailed Listing Information

Your listing should include a detailed property description, including the number of bedrooms and bathrooms and available amenities. Provide detailed information about your property’s location and any specific policies or house rules for renters.

Related: 10 Tips for Showing Rental Property to Prospective Tenants

4. Set Clear Cancellation Policies

Make sure to clearly outline your cancellation policy for your Vrbo long term rentals, including any penalties or fees for cancellations. Also, state how many days prior to the start-of-stay date guests are allowed to cancel the booking and what percentage of the amount paid will be refunded.

5. Provide Responsive Communication

As a vacation rental owner, you must respond promptly to inquiries and booking requests from potential renters. Ensure to reply to any questions from guests and address any potential concerns about booking your Vrbo long term rental property.

6. Stay in Compliance With Local Laws

Different states and cities impose varying rules and regulations for operating a vacation rental business. Make sure that your property complies with local laws and regulations regarding vacation rentals and long term rentals. They include zoning laws, building codes, business licenses, and tax requirements.

7. Set Up Your Preferred Payment Method

VRBO provides a secure payment processing system for hosts and property owners. You’ll need to set up a payment method on your portal and ensure that your account is up-to-date and accurate. Doing so will help avoid delays in receiving payments from guests.

How to Find the Best Property to Turn Into a Vrbo Long Term Rental

The best investment property you can turn into a Vrbo long term rental varies greatly depending on your chosen rental market. In some rental markets, a single-family home may be optimal for long-term bookings. In other markets, a condominium unit may attract more renters looking for a place to reside temporarily. 

If your goal is to invest in a property that’s a hybrid of short term and long term rental, it’s crucial to invest in the best short term rental markets. The best markets for vacation rentals are those that attract visitors all year round and offer long-running events that tourists frequent. 

You may also choose to buy an investment property in a business area to enjoy a higher chance of getting booked for longer stays. You may attract business travelers visiting the city for a temporary work assignment that may last up to six months. Also, look at employees who are there for month-long workshops or training. 

Whatever your decision is, make sure it is based on accurate real estate data and thorough market analysis. However, conducting your own real estate research and analysis can be overwhelming, time-consuming, and prone to error. Fortunately, you can spare yourself from doing any manual research if you use a reliable real estate platform like Mashvisor.

Mashvisor is an online real estate analytics platform that can help you find the best investment property available for sale in your chosen area. It offers a variety of tools that can help you evaluate the property’s investment potential, allowing you to make the right decision.

Here are the tools that can help you find the best Vrbo long term rentals:

Market Finder

The Market Finder tool allows you to find the best real estate markets for your chosen investment strategy. You can choose your state or city and find the top markets for investing in either short term or long term rental. Filter the top markets based on Mashmeter score (Mashvisor’s investment scoring system), cap rate, rental income, or crime rate.

You can also use the heatmap to see what markets are optimal for your preferred rental strategy. From the heatmap, you can set your custom filters like cash on cash return, rental income, listing price, and occupancy rate. It allows you to find the best rental markets that meet your criteria.

Property Finder

After finding the best market for your real estate investment, you can use the Property Finder tool. The tool can help you find the most profitable investment property that would make a good Vrbo long term rental investment. Just type the city or neighborhood of your choice, set a few filters like budget, property type, and size, and you’ll see a list of results that match your criteria.

From the results, you can select a few properties to evaluate to determine which one would provide the highest possible returns. Make sure to consider at least three properties so you can assess them thoroughly to help you decide which will make the best investment.

Real Estate Calculator

The best thing about using Mashvisor is that you will enjoy easy access to all property information that you need to assess the profitability of an income property. Mashvisor also provides access to an investment property calculator that lets you see different rates of measures to determine a property’s profitability potential.

The rental calculator provides information such as cap rate, cash on cash return, cash flow, occupancy rate, and monthly income for both long term and short term rental strategies. With the tool, you can see the information side-by-side and decide which strategy is the best. Find a property that’s ideal for both if you want to rent it as a Vrbo long term rental.

Begin your search for the best investment property for Vrbo long term rentals. Start a 7-day free trial with Mashvisor today.

Are Vrbo Long Term Rentals the Right Investment for You?

Vrbo allows property owners to decide the minimum length of stay for their properties, and as such, you can rent out your vacation rental for the long term if you choose to. Usually, long-term bookings are at least one month, while in some cases, you may be allowed to set a minimum length of stay for more than a month.

If you invest in Vrbo long term rentals, make sure to choose the right market to attract both short term guests and temporary residents. The good news is that you can easily find the best investment property in the right market using Mashvisor’s investing tools. 

Not only will you get access to the important information that you need to evaluate the market and the properties, but you can also search for available properties for sale. Such features make it easier for you to find the most profitable investment that fits your budget and other preferences.

Schedule a demo today to explore the investment possibilities that Mashvisor offers.