Should I Do Short Or Long-Term Rentals With My Property?

chris

November 11, 2022

Articles, Blog, Property Management

Real estate investments exist in a wide range of forms and sizes, just like any other type of investment. When deciding between long-term and short-term vacation rentals, owners and managers might consider a variety of criteria. Although, this decision is typically simple to make since it can be based on the characteristics of your property and your goals. However, both short-term and long-term rentals have a number of benefits and drawbacks, so it’s important to look at them carefully.

Short-term rentals refer to bookings that last for a short period of time, often done on a daily, weekly, or monthly basis. Vacation rentals, house hackers who rent out a spare bedroom, and single-family rental properties with tenants on month-to-month leases are a few examples of short-term residential rentals.

On the other hand, long-term rentals are typically done with a 12-month lease and a set annual rent that is signed by the landlord and the tenant. The majority of residential leases last for a year at a time, but leases longer than a year may be permitted under certain municipal landlord-tenant rules.

The Advantages Of Long-Term Rental Properties

Less Work to Manage

Long-term rentals demand less attention, so whether you self-manage or hire a property management company, managing the property involves less time and work. Additionally, the cheaper management costs, less marketing to keep the unit rented, and overall less work involved with the property are all benefits of the less regular resident turnover.

Consistent Income

Longer lease terms offer constant and predictable cash flow. As long as you find reliable renters, you won’t have to worry about not having any income coming in. At the same time, seasonal variations will have less of an impact on your monthly maintenance budget.

Lower Operational Expenses

A long-term rental tenant will furnish the unit and cover all utilities. Since long-term renters are more inclined to treat the property as if it were their own home, they will make sure to keep it clean, make minor repairs, and perform basic yard maintenance.

The Advantages Of Short-Term Rental Properties

Less Work to Maintain

Short-term rentals are usually much simpler to maintain. Since short-term rentals undergo more frequent cleanings and preparations for new tenants, they often result in becoming better-maintained homes. This aids in avoiding any long-term property damage. If any maintenance issues emerge, a short-term rental owner can get easy access to the house without bothering residents.

Flexibility

If you encounter an unruly tenant, you won’t have to deal with them for a very long time thanks to the short stays. During the busy travel season, it is easier to increase the rent so you can match other businesses. Without long-term tenants, if you decide to stop being a landlord, it is also simpler to get your property ready for sale. 

Your Own Vacation Home

You can secure some time for your own private holiday if you own a place in an ideal location, whether it’s a mountain lodge, a beach condo, or simply a haven away from home. If you want to, you can also allow your friends and families to use it.

Profitable Potential

Profitable vacation rentals are very attainable, especially if you charge the appropriate amount at the right time. After all, one of the main advantages of short-term rentals is the freedom to adjust your nightly rates in accordance with market conditions.

Short-Term Rentals vs. Long-Term Rentals, Which One Is Best?

 

Before you get concerned over the drawbacks of short-term or long-term rentals, you should first and foremost rejoice that you have effectively acquired a property that is in a market that people will be interested in renting! Be proud of yourself and know that whatever you choose to do with your property will very likely benefit you in one way or another.

It can be difficult to decide whether you want to use a short-term or long-term vacation rental approach, but in the end, the decision is yours to make. We hope this blog has been helpful to you and that you’re now one step closer to renting your property. If you want more assistance from an experienced property management company, Marwest Property Management there for you.