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Many homeowners looking to rent out their properties struggle with deciding which option is best and more importantly, which will bring in more money. Without taking an in-depth look, it might seem like the better option is easily long term rentals since you get a huge amount of money at once instead of smaller, more regular payments as is the case with short term rentals. The truth is, you can only decide which is best by weighing the pros and cons of each option.
Pros And Cons Of Long Term Rentals
Long term rentals generally refer to house letting from 6 to 12 months. This means that you will have a tenant living in your property for a significantly long period of time, hence, it is important to properly scrutinize the tenants you choose to rent to. A careless and disrespectful tenant will easily frustrate you. However, since long term rentals involve long term contracts, you cannot simply kick them out if they turn out to be terrible tenants.
On the other hand, long term rentals save you the stress of dealing with new tenants every few weeks or months. You do not have to worry about your yearly revenue from a long term rental as it is predetermined.
Pros And Cons Of Short Term Rentals
Short term rentals are much more flexible and can span from just a few days to a few weeks or months. Many consider this option to be extremely stressful as you have to keep up with a new stream of tenants, keep records and key exchanges, as well as constantly maintaining your property and repairing any damage that comes with different tenants every week. Also, there is no guarantee of constant income as you may not always run at full capacity.
However, short term rentals have been proven to produce 30% more revenue compared to long term rentals. That means – more money! In addition, you don’t have to deal with bad tenants for long.
Which Is Best?
The best option is entirely based on you. Are you willing to undergo the stress with short term rentals but make more money or would you rather make a standard revenue from long term rentals?