12 Feb SHORT TERM OR LONG TERM RENTALS?
If you’re fixed between the option of a short term rental or long term as a real estate investor or you have a property for rental, then reading through this article will give you an eye opener as to why you need to put in for short term rental. Here are some of the reasons:
LESS USAGE OF THE PROPERTY
There are two reasons why this may happen, it’s either your rental rates are high or you have very awesome guests who treat hour home better than your long term renter.
Owing to higher rental rates, the property can still turn over huge profit smell as it would if it was a long term rental with lesser nights used.
Here’s what it implies, if your priorities booked solid, say occupied daily by a renter, there’s every tendency that your home would be used less than a long term renter. The reason is because such guests will not really have so much time to explore everything in the home; there will be some furniture that might never be touched. Short term users do not really spend all day at home. And as said earlier homes that are less used less gives more opportunities to earn more profit as there would be lesser damage to worry about.
Due to the fact that short term renters come and go, it gives you the room to clean and inspect your property regularly. By doing this you get to see which property needs repair, how your home has been used and you get to quickly fix whatever is spoilt for better customer satisfaction and this has its good effect in the long run which is more guests. Short term rental helps reduce the expenses of fixing or repairing damaged properties because lesser properties are damaged and there is a quicker intervention when you check in the regularly. This helps save more.
BUSINESS VALUE ADVANTAGE
If your property is structured to be on a short term rental basis then it has more value proposition than just seeing it as a normal house. It has become a business of its own because it has the ability to keep bringing in profit unlike when it’s just a house. This means that if you choose to put the house up for sale, you have the advantage of selling it at more value than just the property; as you have addressed additional assets around the property making it turning a business.
One annoying thing that can happen is that you want to use your property but you cannot because it is on a long term rental. However, with short term renters you can. You get to make decisions over the usage of your home and you have full control. If your property happens to be in a vacation location or an area where you travel often on business trips, since it is yours, it is easier to use whenever you want to only if it is on a short-term rental.