So you’ve made the decision to buy some rental property, and now you’re trying to decide whether to do short-term rentals or long-term rentals. Depending on location, almost any house, condo, or apartment could be either short-term or long-term rentals, so it’s up to you as the owner.
There are pros and cons to both options, so let’s dig in to find out more so you can find the perfect renting solution for you!
Long-Term Versus Short-Term Rentals
Short-Term Rentals Pros and Cons
Short-term rentals, also known as vacation rental property, entail renting to guests who stay for less than a month. Their rental agreements are by the day or by the week, and the property must be furnished.
Pros of Short-Term Rentals
- Less wear and tear: Vacation rentals are used far less than long-term rentals, resulting in less damage to your property. You also don’t have to worry about guests wanting to paint or change things. By being able to inspect property between guests allows owners and managers to keep up on maintenance and keep little issues from becoming big ones.
- More money: Even though you might have tenants for fewer days of the year with short-term rentals, studies have shown short-term rentals can increase your revenue by between 30% and 100%! You can charge more because people won’t be there for very long, so they’re willing to pay a higher price. Plus, you can fluctuate your prices according to the season.
- Personal Use: This may be the best part of short term-rentals–you get to use it for your own vacation whenever you want! You can block off the days you want it and rent out the rest.
Cons of Short-Term Rentals
- More maintenance: If you don’t have a rental property manager to help you with this, it can be difficult to keep up with repairs and regular cleanings, especially if you don’t live in the area.
- No guaranteed income: To get a lot of bookings, you either need to be marketing savvy or have a manager who is. There’s a lot of competition out there, so you need to set yourself apart!
Long-Term Rentals Pros and Cons
Whie short-term rentals are paid by the day or week, long-term rentals are paid by the month. Typically, the owners are paid at the beginning of the month.
Pros of Long-Term Rentals
- Consistency: If you value consistency, long-term rentals might be for you. You may earn less money overall, but at least you know how much income to expect. You also don’t have to do as much paperwork when your tenant stays longer.
- Less responsibility: With long-term rentals, you don’t have to furnish the home or pay utility bills, so it’s good for a less hands-on owner.
Cons of Long-Term Rentals
- Less flexibility: You won’t be able to use the property for your own vacations on a whim, because tenants have the place for months at a time.
- Less control: With less responsibility comes less control. You or your property manager won’t be able to check on things like maintenance and security as often.
Interested in Short-Term Property Rentals?
If you want to make the most of your rental property investment, you need a manager who can improve your marketing while taking over the day-to-day responsibilities of renting. Call or email our office today to find out if we’re the right match for you!
MountainTown VRM- Vacation Rental Management
110 E Broadway, st 203
Missoula, MT 59802