Long-term Vs. Short-term Rentals

Renting out your home as a long-term or short-term rental can help you make extra money from your empty second home. Don't worry about which option you choose; both have advantages and are suitable for different landlords. However, you might need to do more research. It will help you choose the best option for your needs and money.

STR (Short-Term Rental)

A short-term rental is also known as a vacation rental and is rented chiefly out to travelers looking for temporary shelters, which usually range from one night to one month. Short-term rentals are typically furnished houses, apartments, or condos. It is no wonder majority of travelers find them more appealing, spacious, and come with cost-effective prices and attractive furnishings.

Short-Term Rental Benefits

Some of the short-term rental benefits include:

They Earn More Income.

The cost of renting out a short-term rental compared to a long-term rental can be twice as much. STR's are more lucrative during festive seasons, sporting events, or town conventions for the right time. You can double or triple your nightly, regular prices with more people in town. You can earn enough cash equaling what a monthly pay usually brings in just one week.

They are Flexible

Short-term rentals prices fluctuate according to seasons. In high-demand seasons like summer vacation, prices are usually higher, and in low-demand seasons, the prices are lower. As a short-term rental host, you are advised to maximize your revenue during high-demand seasons and lower your rates in slow months to acquire more bookings.

Cost-Effective Marketing

The charges are usually free when you market your short-term rental on a short-term rental site. The great news is that these types of properties are already famous and you are only required to stand out from the competition. Hence, it would be best to strive to use attractive and appealing visuals, descriptions, and adverts.

Long-Term Rental

Long-term rentals are the most popular types of lease agreements which range from one year or more. They offer landlords a steady and stable rental income while minimizing turnover in the process.

Long-term rental benefits

Some of the long-term rental benefits include:

The Work is Minimized.

Long-term rentals are rarely furnished and save landlords lots of money and time. As a long-term rental landlord, your responsibility is to initially repair and maintain your property. Henceforth, your tenants are expected to clean and cover any bills relating to the property they use. You will often charge tenants for any damages caused to the property beyond normal tear and wear.

Easy Marketing

Long-term rentals have low turnovers, which means that you won't need to market your space, except once a year or sometimes even longer. You have the option of going for the traditional newspaper or magazine ads or the newer forms of media like social media postings or websites add. These forms of advertising are usually low to free costs.

Bottom-Line

Your situation will dictate whether you choose a short-term or long-term rental option. While short-term leases are beneficial for renters seeking flexibility. Long-term leases give better stability, financial security, and less effort when it comes to finding new housing.