Holiday or Long-Term Renting - Which is the Better Fit?
Category Advice
As a landlord, it can be tricky to figure out whether short-term or long-term renting is going to be the most beneficial to you. Your decision is largely going to come down to financial profit and management capacity.
Read more about how you could benefit from either rental option:
Advantages of long-term renting
Consistent income
It is considerably less stressful having the surety of rent coming in every month. When you're renting to holiday goers and business travellers, there is no guarantee that you'll have a good income from your property month to month.
Less advertising maintenance
Once you have a tenant in your property, you can say goodbye to the anxiety that comes with property marketing for a while. Owning B&B and guest-house accommodation can be taxing for time and money when it comes to advertising.
Less property maintenance
Being a landlord to short-term rentals comes with the responsibility of checking guests in and out, constantly keeping up with cleaning your unit, and replacing or fixing furniture and supplies.
When you've got a permanent tenant in your property, they will generally take care of all the basic maintenance and utility fees, and can be left alone without having to be frequently checked up on.
Advantages of short-term renting
Possibility of higher income
If you're able to get guests into your property for most of the month, you will be profiting more from a short-term rental. Nightly rates are significantly higher than a monthly rental. It is also common for landlords to increase rates during the peak and holiday seasons, creating more opportunity for profit.
Personal holiday home
The great thing about not being tied to permanent guests is that you can book out your property for personal use whenever you feel like it. Your holiday house can be your income when you're not using it.
No commitment to tenants
Renting your property for the long-term comes with the risk of signing into a lease with uncooperative tenants. It is difficult to get out of a contract with tenants who don't want to leave but aren't meeting your standards. Short-term renting assures that even bad tenants won't be in your hair for too long.
Whether you decide that you're looking for permanent tenants or guests on your property, we offer services that will help you manage all the tough work that comes with being a landlord.
Author: SAproperty.com
