When someone owns a property and is looking to rent it out, owners can either go for short term or long term rentals.
Although long term rentals may feel like a safer option, short term rentals can be really profitable in certain areas during certain periods of the year.
We are back with another article for Woke Wednesdays in Real Estate and let’s just get right into it with the pros and cons of both options!
1. Short-term rentals
This type of rental allows you to rent out your property for short periods of time like just a couple days to 6 months.
We would get higher returns in short-term rentals but we need to keep in mind that there will be higher maintenance costs too, as there will be guests coming and going all the time.
A big con of renting for short periods of time constantly is that we won’t likely have occupancy always and that can be stressful as we’ll have to continue paying for those maintenance costs we mentioned above, as well as refinish our property and equip it with TV, Wi-Fi…etc
2. Long-term rentals
If you are looking for more stability and calm you may want to go for long-term rentals, where the return won’t be as high as with the short-term option but might be worthwhile to secure a good tenant that looks after your property. And if you’re lucky, you may have a tenant for quite a while as tenants usually have a renewal option that they may take.
Ensuring good management of your property and tenants would mean that you can basically bank on your monthly rentals. Securing a good tenant who looks after your property provides peace of mind to the landlord.
The risk we take here is that we never know quite well if we chose the right person to live at our property, and that can be a problem as once the contract is signed, it will be hard to change the tenant from one day to another in case we don’t like the person.
Good luck, and I hope you enjoy your new home for many years to come.
So that’s all for today, hope you found this article useful so far and don’t hesitate in reaching me out if you have any questions or need a consultation.
Stay hungry and stay positive!
Make it a great day,
Sean La Rue