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David wants to rent out his house, and he can list it as either a short-term vacation rental or yearlong lease. He lives in a quiet university town. Similar short-term rentals on the market average
$120/night, and similar yearlong leases average $900/month. Based on the number of short-term rentals needed to match the revenue of a lease and the likelihood of finding enough renters,
should David plan on short-term vacation renters or a long-term lease?
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O David needs 8 short-term rentals yearly to make more than from a yearlong lease. He should plan
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Answer 1

Answer:

David needs 8 short-term rentals monthly to match revenue from a lease. He can rent both ways because he is equally likely to get either type of renter.

Step-by-step explanation:

Answer 2

David needs 8 short-term rentals monthly to match revenue from a lease.

We have given

David wants to rent out his house, and he can list it as either a short-term vacation rental or a yearlong lease.

He lives in a quiet university town.

Similar short-term rentals on the market average.

$120/night, and similar yearlong leases average $900/month.

What is the formula for Short term rental needed to match monthly rent?

Short term rental needed to match monthly rent

=Monthly rental / short term rental

= $900/ $120

= 7.5

David needs 8 short-term rentals monthly to match revenue from a lease.

He can rent both ways because,

He is equally likely to get either type of renter.

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