Short Term Vs. Long Term Rental Properties
Rental properties have become a popular way of earning income. Some have a vacation home that they rent out when they are not staying there. Others have a property that is solely for renters, whether that be long term or short.
Short Term Rental
Short term rentals are a popular choice due to them having the potential to make a more substantial profit. They also offer much more flexibility. The price a night can fluctuate depending on the demand, seasonal trend, popular events happening near, and so much more. The ability to control the rate and increase when needed allows a provides the opportunity to make a more substantial profit. The flexibility of short term rentals allows for the owner to determine when the property is available for renters. Marketing for a short term rental is easy and affordable. Some websites used for marketing would be Airbnb and VRBO.
Short Term Rental Disadvantages
Let’s look at the other factors of short term rentals before jumping right into starting up a short term rental property. These types of properties tend to need more maintenance throughout the year. Determining the best location is very important. Depending on the popularity, there may be a large amount of other rental properties available nearby. With having a large group of competition, getting renters to choose your property can be difficult. Short term rentals have a quick turn around rate, which means a large amount of traffic through your property. It will take more time and work to keep up track of all the renters, maintaining the property, and cleaning.
Long Term Rental
Long term rentals are another option to consider. These types of investments are the most common choice. They have a more significant appeal due to them needing minimal work. The typical time that renters will be in one of these properties will be one year or longer. Having the same tenants for a long time means less maintenance that is needed, the property will not wear down as quickly, and it provides a stable, steady income.
Long Term Rental Disadvantages
Choosing long term rentals does provide a stable income; however, it does not leave much from for a profit. Another disadvantage would be less flexibility. Rent amounts are stagnant and secure; owners are not able to fluctuate the price to answer the demand.
Rental Property Management
Whether you are managing one property or multiple, it can become overwhelming. While tending to the property maintenance, keeping track of renters, and cleaning after each guest can be quite time-consuming. The good thing is if you do decide to proceed with a rental property. Short Term Rental Manager is here to help you along the way. Click here to see how STRM can help you.