Renting your property can be a smart financial move, but do you know whether short or long-term rentals will be best for you?
Long-Term Vs Short-Term; what’s the difference
A long-term rental is generally a contract of over 6 months to a year and is suitable for those looking to have consistent occupancy and income from their property. Short term rental usually means renting by the day, week, or month to vacationers and short-term occupants; the money is big, but so is the workload.
If you want to compare the pros and cons of long and short-term renting read on;
Advantages of Long-term Rentals
Once your renter is in the property you don’t need to do much other than keep on top of any repairs and collect the rent. No regular check-ins, no busy schedules, and no constant emails and telephone calls from interested parties.
You can plan ahead for your income over the time you have an occupant; this is a more stable way of earning, and you can sometimes get a full years rent in advance from someone if you offer a discount.
Drawbacks of Long-term Rentals
More wear and tear
Long term renting means providing the kinds of furnishings that can withstand day to day use: and, though long-term renters are more likely to be careful, they also result in more wear and tear.
No chance to use your property
When you rent long term you also lose the use of your property long term; this can be a big downside for some.
If your renters don’t pay it can be harder to evict them when they’re in long-term; they may abuse their residential rights and cause some real disruption for you. It’s also much harder to get them to leave if you decide not to renew their contract.
Advantages of short-term Rentals
When you rent by the day, week, or month you can make a lot of money in a short time. In fact, if you own a property in a sought after tourist area you could make more money in two weeks renting short term than you might over one or two months renting long term.
Can still use your property
Short term renting also means that you can still use the property now and then if you wish to vacation yourself, or if a family member requests to use it for some reason.
There’s less of a focus on white goods like freezers, washing machines, and stoves when you rent short term. Closet space is also less important. When you rent short term it’s more like a hotel stay for your guests.
Drawbacks of short-term Rentals
It is undeniably more work to rent short term as you need to manage your calendar, ensure check ins and check outs don’t overlap, and make sure the property is fresh for each arrival. This is a lot of work, especially if you do not live nearby.
Less respect for your home
Short term renters are also less likely to take care of your property and furnishings. It’s harder to track breakages and when items go missing, too, so though the earnings are higher the costs can also be great.
What’s your opinion about rentals? Do you think it best to rent out your property for short-term or long-term rentals?