Whether you are new to rental investment or an experienced landlord, you have surely thought of renting long or short term. What is best to do, rent your property in the long or short term?
Before delving into the details, let us start with some reasons that make landlords question which of the two is better. One clear reason is the development of the long-term rental market itself. When the market slows down, you may not be able to obtain the rent increase you were hoping for. Or regular rent increase is crucial for many landlords as an important addition to their monthly income that often helps pay mortgages and other loans.
At the other end of the spectrum, thanks to online services such as Airbnb, the short-term rental market in many cities across the country is experiencing a massive boom. Renting your property short term certainly brings in more money, but only for as long as it stays rented, but you lack control over how busy your property will be. On the other hand, a long-term rental means less money, but your property is virtually always rented out. Since revenue increase is what most landlords are up for, it is essential to make an educated decision about marketing your home as a long- or short-term rental.
Here are a few points that you should consider before you decide whether it is best to market your property as a short term, as opposed to the more traditional long-term rental. Let us begin with the property:
The most likely clients of short-term rentals are visitors, tourists, businessmen, and professionals. More often than not, these prefer to rent in the vicinity of the city center, attractions, or business and professional neighborhoods. If your property is conveniently located within walking distance of any of the above, it may be a good fit for a short-term rental such as Airbnb and you can consider becoming an Airbnb host. Do not despair if it is not. If the house is in a neighborhood that is well connected by public transport to the city center or attractions, many guests will still find it reasonable to commute, at least in certain conditions, which we will discuss below.
The general feel of the neighborhood is extremely important as well. If the area has a good range of restaurants and bars or is known for cultural activities or a rich nightlife, – in short, inter