Renting property is a form of investment and requires you to choose which type of lease you want to resort to.
There are several factors to evaluate, to understand whether it is convenient to rent real estate in the short or long term. Often, this decision seems almost obvious, achieving the very nature of the property and the objectives pursued. However, both lease formulas have a number of advantages and disadvantages.
Do you need help deciding whether to rented properties in the short or long term? You are in the right place. We will take care to outline the pros and cons of both options.
WHAT IS SHORT-TERM RENT?
First of all, let us familiarize ourselves with the definition of “short-term rent”.
Short-term rent- in the common language, tourist rent or “holiday homes” – is the lease for delimited periods of a furnished property. At the owner’s discretion, as well as by location and a number of other factors, this type of property is usually rented on a weekly or daily basis.
Many vacation home owners rent their property for most of the year, in all periods when they do not use it themselves.During the last decades, holiday homes have become a popular alternative to hotels.
WHAT IS LONG-TERM RENT?
Long-term rent – unlike short-term lease – typically refers to properties that are rented for a month or more. Typically, renters pay the owner on a monthly basis, paying extra charges such as utilities.
RENT LONG-TERM PROPERTIES: ADVANTAGES
- Guaranteed income
One of the main advantages of renting long-term properties is the security of a monthly income that you can count on. Which can be a relief to those who have owned the building recently and are burdened by many expenses. In addition, long-term tenants are generally responsible for paying regular bills for electricity, gas, water and often the Internet.
- Stability
Long-term rent implies minor concerns related to the administration of the property (bureaucratic procedures, key delivery, marketing, etc.). Once the tenant signs the lease, it is known (with relative safety) the duration of his stay. The only need to worry about is the search for a new tenant for when the house returns free.
- No need to furnish
Some (though not all) long-term guests bring their own furniture. This can make the decision easier if you are thinking about renting your unfurnished property. With long-term rent, not only will you receive a guaranteed monthly payment, but you will not have to buy new furniture for your home.
- Deposit
If you are worried about the details of the rent, such as insurance, lease or deposit, you do not need to panic. For long-term rentals, it is normally possible to request a substantial deposit, which will then be returned to the tenant at the end of the rental period, unless damage has been caused to the property. These cash deposits can give the owner an extra reason to feel comfortable when it comes to renting real estate.