Should I Go Short-Term or Long-Term? ~ The Business Blog
When deciding between using your second home as a short-term or long-term rental investment, there are a few things you need to consider: the amount of owner use you anticipate, revenue expectations, and tenant expectations. As part of our vacation rental management program, we can help you make this decision!
If you, as the owner, anticipate utilizing the property as a vacation home for yourself and friends/family, then long-term is almost definitely off the table, as a tenant will be occupying your home. However, if consistent and regular income is your goal, then long-term rentals will likely be the best route for your expectations. They provide consistent revenue, typically show less wear and tear to the home, and pay utility bills.
If your home is simply an investment and you are looking for the best return on that investment, short-term rentals will be your best bet. Short-term rentals take advantage of current demand and occupancy, which can lead to higher rental prices.
It is also important to consider the location of the property when deciding between short-term and long-term. Since short-term and long-term tenants have different needs and expectations, location plays a big role. Guests staying for seven days will possibly want to stay as close as possible to the beach to avoid spending valuable time traveling to and from the sand.
Generally, short-term rentals need more upkeep as they have higher traffic as compared to long-term rentals. This means if you choose the short-term rental route, you will make more money, but will also likely have to spend that money more quickly and more frequently to keep the property in good shape to continue demanding top dollar. Properties tend to wear down slower when a single family or the same individuals live in the property over that period of time.
The major factors to consider when deciding between using your second home as a short-term or long-term rental investment are the amount of time you anticipate using, your revenue expectations, and tenant expectations as it pertains to property wear and tear. Do you still have questions? Contact us today to learn more about our vacation rental management program.