Should I Do Short-Term or Long-Term Rentals? ~ Southern Vacation Rentals
When deciding whether to use your investment home as a short-term or long-term rental home, there are a few things you need to consider: the amount of stays you will use, your revenue expectations, and your tenant expectations. Does this seem daunting? Don’t worry, our knowledgable vacation rental management team is here to help!
If you anticipate using the property as a vacation home for yourself and friends or family, then long-term is likely going to be 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 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, then 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.
In addition, 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 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 seeing maximum revenue. 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.