What are Short-Term Rentals?

Short-term rentals are fully furnished accommodations typically rented out to travelers anywhere from one night to a month. Guests typically book these rental services for a few days. People are drawn to vacation rentals as an alternative to hotels primarily due to the larger living space and amenities, such as kitchens and washer/dryer units. This typically includes stays under one month (30 days), but maximum stay durations may vary depending on the state and legal jurisdiction where the rental property is located.

It could be said that short-term rentals have become an appealing investment in recent years due to the potential for higher cash flow. However, they also bring new challenges for investors more accustomed to traditional long-term rental properties, from the rapid turnover of guests to additional regulations. Experts note that the short-term rental market is becoming increasingly competitive, so doing research and developing a strategy before diving is even more crucial. 

The Allure in Oklahoma City

A Booming Arts and Culture Scene

OKC takes pride in its vibrant artistic scene, boasting world-class museums, upscale restaurants, and lively nightlife. This attracts a steady stream of tourists seeking unique experiences, perfect for your short-term renters. The city offers shopping districts, dining options, nightlife, sports events, festivals, and cultural happenings to keep you busy as desired. There’s always something to do in OKC, whether you’re a family seeking age-appropriate adventures or a single professional looking for an exciting night out.

The diversity of amenities in Oklahoma City is vibrant. From the beautiful Myriad Botanical Gardens to the Bone and Joint Museum and beyond, you’ll never have a dull moment! Here are some fantastic attractions and amenities that Oklahoma City offers: 

• Civic Center Music Hall
• Frontier City Amusement Park
• Oklahoma City Zoo and Botanical Garden
• White Water Bay Water Park
• Lake Hefner
• National Cowboy & Western Heritage Museum
• Fred Jones Jr. Museum of Art
• Blues and BBQ music festival
• Oklahoma City National Memorial
• Bricktown Waterfall
• Automobile Alley

There’s always something to do in Oklahoma City, whether you’re a family seeking age-appropriate adventures or a single professional looking for an exciting night out. You can find it all in OKC! 

Strong ROI Potential

Oklahoma City offers a favorable return on investment (ROI) for short-term rentals. With strategic management, your short-term rental property can generate significant income. Although the exact ROI may vary depending on factors such as location, scale, and property amenities, Oklahoma City presents overall positive prospects for short-term rentals. Here’s a deeper look into why:

• Convenient rental rates: Compared to traditional lease contracts, short-term rental agreements allow you to charge nightly fees, with the ability to adjust prices based on season, events, and demand. Weekends and famous tourist festivals can witness a surge in rental income.
• High occupancy rates: Oklahoma City boasts a robust tourism industry, along with growing business sectors attracting temporary residents. This ensures a stable potential customer base, helping you maintain consistent occupancy and income.
• Manageable property costs: Real estate prices in Oklahoma City tend to be lower than in coastal cities, enabling you to invest in properties with good mortgage rates and generate healthy profits.

Short-term rentals are a cost-effective alternative to hotels

Short-term rental services often provide a more practical and convenient choice for travelers compared to traditional hotels in Oklahoma City. Short-term rental prices typically do not include hidden fees such as resort or parking fees that can inflate your hotel bill. You know exactly what you’re paying upfront, allowing for better budgeting and avoiding unpleasant surprises as in hotels.

These services often offer more space and amenities than standard hotel rooms. Imagine a family or a group of friends enjoying a fully equipped apartment with a separate kitchen and living area, all at a potentially lower price than a few cramped hotel rooms. Overall, short-term rentals are an attractive alternative to hotels in Oklahoma City, especially for those looking to save costs, have more space and amenities, and experience life like locals.

Advantages of short-term rentals in OKC

Owning short-term rental properties in the bustling, populous city of Oklahoma City offers numerous advantages, making it an attractive investment opportunity. Here, we’ll delve deeper into some key benefits as follows:

High-profit potential

With careful planning and management, short-term rentals in OKC can yield lucrative income streams, especially if you price right at the right time. This is one of the greatest benefits of short-term rentals—flexibility in adjusting your nightly rates according to demand. For example, special events, peak seasons, and weather can all be reasons to charge higher rates. At Stay in OKC, our revenue analysts update house prices daily to match future demand, so you can easily capitalize on those peak times to seek high profits for yourself.

Flexible Scheduling

Short-term rentals in OKC offer a level of flexibility that traditional long-term rentals do not. With short-term rental services, you can choose to rent out your property for just a few nights, a week, or even a month at a time. This makes it easier for you to plan your schedule when visiting OKC and ensures that you always have your property available when needed. You have better control over the rental period compared to traditional lease agreements, allowing you to adjust prices based on seasons and events.

Deductions and tax breaks

Owning a short-term rental property in OKC can offer tax benefits such as mortgage interest deductions and property maintenance deductions. When conducting short-term rental services, you can deduct various expenses related to rental activities. 

This includes property maintenance, utilities, insurance, property management fees, cleaning services, advertising costs, etc. These deductions can offset the rental income you receive, thus reducing your taxable income. Compared to long-term rentals, there are typically more deductions available for supplies, more frequent cleaning, and higher management fees.

Unique Guest Experience

Short-term rental services allow you to create personalized and memorable experiences for guests, encouraging positive reviews that attract future bookings. Another benefit of short-term rentals is the opportunity to receive feedback from guests. 

This feedback can be invaluable in helping you improve accommodations and provide a better experience for future guests. By listening to guest feedback and implementing necessary improvements, you can continue to attract more bookings and earn additional income. 

Harness the Power of Technology 

The short-term rental industry has witnessed significant growth in recent years, thanks to the technological prowess of renowned short-term rental platforms such as Airbnb and Vrbo. These platforms simplify marketing activities, communication with guests, and booking management.

Airbnb and Vrbo are two of the most important companies in the short-term rental industry. Both operate online, connecting property owners with travelers seeking short-term rental accommodations. Established in 2008, Airbnb has since become a recognizable brand and the largest provider of short-term rental services globally, offering 6.6 million listings in over 100,000 cities worldwide. Vrbo is also a major operator, providing approximately 2 million listings.

As an investor, it’s crucial to understand the growth of the short-term rental industry in OKC. Additionally, integrating technology into short-term rental services offers travelers convenience and cost savings while providing property owners and management companies with a streamlined platform to operate and market their rental properties.

Challenges of short-term vacation rentals in OKC

In general, short-term rentals offer several benefits for homeowners seeking additional income and tapping into the sharing economy. However, with the appropriate approach, short-term rentals in OKC may pose the following challenges:

Fluctuating income

• Income fluctuates seasonally: Short-term rental income in OKC can be a rollercoaster ride throughout the year. Peak tourist seasons and major events like the Oklahoma State Fair may experience higher demand and allow for higher pricing. However, during off-peak seasons, demand may significantly decrease, potentially resulting in lower income and requiring you to adjust rental rates.
• Increasing competition: The OKC short-term rental market is growing, and with more options available to guests, you may face fiercer competition from other businesses. This could directly impact your occupancy rates and lead to lower rental income during certain periods.

Too many responsibilities

Short-term renting in OKC can bring various benefits such as higher income potential, flexibility in asset utilization, and networking opportunities. However, it also comes with important responsibilities that must be efficiently carried out to ensure success and avoid potential issues.

Managing short-term rentals requires performing various tasks. These include communicating with guests, coordinating cleaning services, overseeing maintenance, and being able to market your business. Guests may book and arrive at any time, requiring hosts to be ready to assist and address issues 24/7. Additionally, guests may encounter issues during their stay, and hosts need to resolve complaints effectively and professionally. The workload can be overwhelming, especially if you own multiple short-term rental properties.

Regulations and Permits

Renting out your property as a short-term rental comes with a level of legal responsibility. You’re responsible for ensuring that your accommodation is safe and well-maintained, and you may be legally liable if a guest is injured on your property.

OKC has specific regulations regarding short-term rentals. These may include licensing requirements, limits on occupancy, and zoning restrictions. Failure to comply with these regulations can lead to fines or even license revocation. Oklahoma City has strict regulations regarding short-term rentals, and you may need to obtain permits or licenses to legally rent out your property.

More maintenance and upkeep

With a frequent turnover of guests coming to OKC, short-term rental services will experience more wear and tear compared to traditional long-term rentals. This requires more frequent cleaning, potential furniture replacements, and addressing minor maintenance issues more regularly.

Additionally, short-term guests may not be as invested in careful housekeeping as long-term tenants, leading to a higher risk of damage. Short-term guests from various places come to OKC, and they may have different living habits and use homes differently, increasing the risk of misuse and damage.

Mitigating the Risks of short-term rentals in OKC

Thorough Screening

The foundation of risk mitigation lies in selecting responsible and respectful guests who will take care of your accommodation. Here’s how to implement a thorough screening process:

• Utilize screening tools: Take advantage of guest screening features provided by short-term rental platforms. These may include background checks, identity verification, and reference checks.
• Set minimum requirements: Establish minimum requirements for guests, such as age limits and positive reviews from previous stays.
• Communication is key: Interact with potential guests through clear communication. Ask relevant questions to understand the purpose of their visit, the number of guests, and their expectations. This allows you to assess their suitability for your property.

Clear Communication

Open and transparent communication with guests is crucial for a positive experience and for minimizing potential issues. Here’s how to achieve clear communication:

• Detailed house rules: Establish comprehensive general rules outlining expectations for guest behavior, noise levels, occupancy limits, and proper care of the accommodation.
• Rental agreement: Use a clear and concise rental agreement that outlines the terms of stay, including payment details, cancellation policies, and deposit information.
• Prompt responsiveness: Be ready to answer guest questions and address any concerns promptly. This fosters trust and prevents misunderstandings.

Professional Management

Although you can manage your short-term rental on your own, collaborating with a professional property management company like Stay in OKC can provide significant advantages in risk mitigation:

• Expertise and Experience: Property managers have in-depth knowledge of local regulations, market trends, and best practices. They can navigate complex situations and ensure compliance with local short-term rental regulations.
• Screening and Guest Communication: They can handle guest communication, screen potential renters, and enforce house rules, saving you time and effort.
• Maintenance and Repairs: Professional management companies often have established relationships with reliable cleaning crews and maintenance staff, ensuring your property remains in optimal condition and minimizing potential repair costs.

Making an Informed Decision

The best risk mitigation strategy begins even before you invest in real estate. Here’s how to make informed decisions:

• Market Research: Conduct thorough research on the short-term rental market in OKC. Analyze rental trends, competitor listings, and occupancy rates to understand potential income and associated risks.

• Financial Planning: Develop a detailed financial plan considering not only potential income but also estimated expenses for mortgage payments, property taxes, maintenance, and potential vacancy periods.

• Seek Expert Advice: Consider consulting with a reputable real estate agent or short-term rental property management company. They can provide valuable insights and specific guidance for the OKC market.

By implementing these risk mitigation strategies, you can confidently approach short-term rentals in OKC. Through careful guest selection, clear communication, professional management as needed, and informed decision-making, you can minimize potential issues and maximize the success of your short-term rental project.

Why Should You Partner with Local Businesses for Your First Short-Term Rental Investment?

Market Expertise

• Deep Understanding of OKC: To manage short-term rental properties smoothly, it’s crucial to understand the market and demand for short-term rentals in OKC. With years of experience in the industry, the Stay in OKC team brings excellent expertise. We stay ahead of market trends, leveraging our knowledge to optimize your property’s performance and maximize rental income.
• Strategic Location Selection: Moreover, partnering with a local company like Stay in OKC can assist you in selecting strategic locations for your first short-term rental investment based on customer demand, income potential, and other essential factors.
• Investment Potential Evaluation: Furthermore, Stay in OKC can assess the investment potential of short-term rental properties you’re interested in, helping you make informed decisions and maximize profits.

Support and Management 

• Comprehensive Service Offerings: Stay in OKC provides full-service solutions for short-term rentals, including managing booking schedules, cleaning, guest communication, handling incidents and maintenance, and showcasing your property. Our interior design services create a unique and standout property. We regularly update photos to enhance its presence across all platforms. We recognize that each property is unique, and so are the goals of every property owner. Our personalized approach ensures that we tailor our services to meet your specific needs, whether you’re seeking full management services or a customized package.
• Time Liberation: Partnering with Stay in OKC helps you save time and effort, allowing you to focus on other aspects of investment. Embrace the future of vacation rental management with our advanced technology. From flexible pricing strategies to online booking platforms, we harness the power of technology to streamline operations and enhance the guest experience.
• 24/7 Expert Customer Support: Stay in OKC is always ready to assist you 24/7 in resolving any issues that arise during short-term rental in Oklahoma City. Our team is extensively trained to handle challenging situations and platforms with standardized processes. If any issues arise, Stay in OKC’s local staff will be immediately available to address your request.

Cost and Time Savings

• Operational Efficiency: Stay in OKC can optimize the efficiency of your short-term rental operations, helping you save costs and maximize profits. Stay in OKC applies dynamic pricing strategies tailored to each platform’s algorithm (descriptions, photos, A/B testing) or across multi-channel listings such as VRBO, Booking.com, and Airbnb.
• Partnership Networks: Stay in OKC has a network of trusted service providers, saving you time and costs when searching for cleaning, repair, maintenance services, etc. Additionally, they also have partnerships with other local businesses in the tourism industry, helping you promote your short-term rental to a wider audience. Stay in OKC provides a supportive community for short-term rental investors, allowing you to connect with like-minded individuals and share experiences.
• Professional Processes: Stay in OKC implements professional processes to manage short-term rentals, helping you protect your assets, minimize risks, and avoid common mistakes by Pre-inspection; Comprehensive insurance coverage; Routine maintenance; Utilizing technology for property protection (cameras, noise detection); Guest screening; Expert cleaning team; Assistance with permits. 

Conclusion: 

In summary, partnering with a local business like Stay in OKC can indeed be beneficial for your first short-term rental investment in Oklahoma City. Their expertise in the local market, efficient support and management, cost and time savings, and networking advantages can greatly enhance your investment experience. With their assistance, you can optimize your short-term rental investment and achieve success in the OKC market.

Are you ready to experience Stay In OKC’s short-term rental property management method? Contact us  today to discuss your short-term housing needs and explore how we can assist you in finding the perfect home or maximizing your investment returns as a homeowner !!