If you have a property that you want to generate some money for you, the most ideal thing that you can do is to have it rented as a vacation rental. Here, you will be able to get renters to pay for the cost of maintaining the property and even more. The good thing about the renting market is that it is booming in some locations. Now, if you are just a newbie in the vacation rental and airbnb industry, do you go for long-term or do you go for a short-term rental?
In order to have a clear picture of long-term and short-term rental, it is a good idea that we break things down for you. It is important to understand the pros and the cons of each option.
Long-Term Rental
When it comes to having a long-term rental property, most likely, you will only be talking to one renter. That means you can save the trouble of adjusting to another renter every few days. For someone who simply wants to sit around and not worry about occupancy, then a long-term rental is a great option for you. However, keep in mind that long-term rent is cheaper than short-term rent.
In addition to this, keep in mind that long-term rental can do more damage to your property. Since the renter is staying for a longer period of time, the property accumulates more wear and tear. And because of this, there are some damages that will only be fixed once the renter decides to leave the premises of the property.
You also have to take into consideration the reality that it can be quite difficult to find someone who is going to commit for a year in your property.
But once you have a tenant, this means that you don’t really have to worry for a couple of months. You can expect the payment to go straight to your bank account.
Short-term rental
So why is it that homeowners now love short-term rentals? For starters, you can easily raise the rent at any given time. You don’t have to worry about current renter that they can’t handle the increase on the rent. The good thing is that you can easily adjust the price especially if you have done some renovations.
However, it can be challenging to increase the booking rate. Often times, you have to invest a good amount of time and money in order to get more people to rent on your property. You want to make sure that you cover the interiors and the overall experience of your renter, it is also crucial to cover the marketing part of having renting your property.
If you opt to have your property rented, you need to understand that it is not really as easy as it looks. Choosing between short term and long term rental can be a tough decision to make. As rule of thumb, if you want more money in your property, stick to a short-term rental. What you can do is to increase the maximum capacity of your house in terms of beds and you can solve the problem already. However, if you want something that is less stressful, stick to long-term tenants.
