Long vs. Short-Term: Which Is Better For Rental Management?

The fundamental goal of a rental management company is to receive the best potential return on your investment. This could entail choosing a short-term rental over a long-term rental or vice versa. Short-term rentals are becoming increasingly popular as a cheaper alternative to high-priced hotels in famous vacation spots and tourist districts.

On the other hand, long-term rentals offer more stability and consistency due to year-long leases and dedicated renters.

When determining what direction to pursue with your rental property, the adage “location, location, location” is right. Florida, Kahuku, Tampa, Hawaii, and San Antonio, Texas are among the most popular short-term rental destinations; note that they have all been considered vacation destinations with mild weather all year.

However, because average worker incomes have been stagnant over the last decade, there is still strong demand for rentals, particularly apartments and single-family homes. Cleveland, Ohio, and Jacksonville, Florida, are two of the best cities to invest in long-term rentals.

Regardless of whatever choice you choose, there are certain advantages and disadvantages to both:

Long-Term Accommodations

For a variety of reasons, long-term rentals have been the traditional option for property investors, including:

  • Longer lease term: Having a set deadline and a year-long contract ensures that you always have someone paying rent on your property. This means there are no seasonal variations or off-seasons that would make renting your house difficult.
  • Less advertising: Short-term rentals must be advertised weekly to fill in for upcoming dates. You will only need to market a long-term rental property when your tenant moves out. You can also demand notice, giving you plenty of time to find a new tenant.
  • No utility bills: In a long-term rental, the renters are normally responsible for their energy, water, and other utility bills. This isn’t the case with short-term rentals, so you’ll be responsible if guests turn up the heat.
  • Basic maintenance: Long-term renters can keep the house clean, perform yard work, and perform minor repairs. Short-term rentals are frequently treated as hotels with no cleaning or upkeep requirements.

Vacation Rentals

Tourists are currently gravitating toward short-term rentals. Virtually any location now has Airbnb and VRBO rentals. Short-term rentals can provide a more comfortable and in-depth cultural experience than a hotel. Here are some of the benefits of a short-term rental (although keep in mind that location is crucial):

  • Not bound to the same tenant: Even if you conduct a thorough screening to select a tenant in the first place, you may be trapped with a tenant who isn’t a good fit for you or your property or who fails to pay rent on time. Short-term rentals can help you avoid this. In addition, you won’t have to worry about evicting the tenant if you sell the home.
  • Vacation house: If you own a property in a desirable location, whether it’s a mountain lodge, a beach condo, or simply a home away from home, you can schedule your vacation. If you like, you can share it with your friends and family.
  • Increased earning potential: Short-term rentals in tourist locations are typically marketed at higher nightly rates. This will allow you to raise your revenue at a faster rate dramatically.
  • Easier to keep up with repairs: Because you’ll be at the property more frequently to examine and prepare it for the next guests, you’ll be able to discover and remedy problems sooner. Long-term renters usually do more damage to the furniture and appliances.

While both the long and short term have advantages, there are a few other aspects to consider. A short-term rental, for example, would want greater interaction from you to maintain it clean, organized, and in constant communication with guests. 

Suppose you don’t live near your property or don’t have the financial resources to be that hands-on. In that case, you’ll have to pay a property management company in Jacksonville, FL, or someone to handle the majority of the work for you, which can be costly. 

Another factor that makes short-term rentals more challenging is that they must be completely furnished, with cookware, linens, towels, and other amenities that guests would expect and demand if they were staying in a hotel.

Furthermore, long-term rentals will have a slower income flow, and you will most likely not be able to charge higher premium rates because you must adhere to the lease agreement. Long-term tenants, as previously said, may cause additional wear and tear on your property, particularly in the kitchen, due to the length of their stay.

Conclusion 

Whatever path you choose, make sure you’ve asked the necessary questions about your property in terms of location, size, and management type to get the best return on your investment. To do this, you can seek a property management company. 

Since 1985, Quest Management Group has provided full-service real estate services to customers throughout Northeast Florida. We manage single-family investment houses, commercial office buildings, restaurants, retail centers, boutiques, and other residential and commercial properties. We can support you with purchasing or selling a house or commercial property and relieving yourself of day-to-day operations. Contact us if you’re looking for a property management company in Jacksonville, FL