Investing in properties can be risky. The magnanimity of returns that owners can expect highly depend on the property’s location and type of term.
Where long-term rentals can give you fixed returns over time, a short term rental Seattle WA can help you gain exponential returns without having to lend your property for months, if not years.
Short-term rentals can do much better than long-term rentals because of the diversity in prices. Tourists can happily pay more for their month’s stay than tenants renting for a year.
But long-term rentals can be your go-to option if you need a steady flow of passive income.
So, which one should you buy? Let’s understand that by looking at the benefits of both long and short-term rentals:
Long-term rentals
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No seasonal constraints
If you can compromise on returns for consistency, then investing in a long-term rental can be feasible.
Since there is a long lease duration, you will always have someone paying you rent, even during the off-season.
So, if you plan to create a steady income stream, we recommend you go for long-term rentals.
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Less advertising
Leasing your property on a long-term basis can help save you money that you would have otherwise spent in the case of short-term rentals.
Since long-term tenants are going to stay for months, you don’t have to spend on highlighting your property every day. Your marketing campaigns will start only after your tenant starts serving the vacation notice period.
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No utility payments
Leasing your property for the long-term means the payment of utilities like power, water and maintenance lies on the tenant. Therefore, you don’t have to spend a penny from your side throughout the tenancy.
Long-term tenants are also responsible for cleaning and maintenance of your house. They will do some repairs and yard work as well.
Short-term rentals
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You don’t have to stick to a single tenant for long
One of the best amenities short-term rentals have for investors is that they don’t have to stick to a single tenant for months.
Some tenants can be a headache; they may not pay their rent and utility bills on time. Thanks to the contract, you can’t show them the front door until they complete their tenancy.
But short-term tenants are generally tourists who are likely to pay you the rent in advance.
Moreover, new faces always come in, so you don’t have to worry about dealing with lousy renters for long.
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You are in charge of the home.
Short-term rental spaces are always available for personal use. You can block all the tenancy requests and move in for a vacation with your family and friends. In other words, you can exercise complete authority over your house.
Moreover, short-term rentals are priced at nightly rates. You need not charge as high as a hotel, but a reasonable price that takes care of your profit is good. You can consistently charge higher than long-term rental prices and make decent money.
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Easy to repair the property
Since people will not spend more than a few weeks, the property will likely experience minimal wear and tear, which can be easily fixed.
Moreover, you can visit the property often and inspect its condition to ensure that everything is fixed and working so that your guests don’t leave bad reviews on your property while leaving.
Final Thoughts
Both short- and long-term rentals have their benefits. Therefore, it is best to list your priorities and limitations before investing in a property. So, consider these detailed descriptions before you take your final call.
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