Short Term vs Long Term rentals!
Posted on 26th September 2019 at 12:14
Why short-term rentals mean long-term gains.
For years, the buy-to-let market has been dominated by long-term lets. Most landlords opt for six to twelve month tenancy agreements, with a view to having their properties let to the same tenants for years, or even decades. And while there’s nothing wrong with this approach, there are other – potentially more lucrative – options out there.
One of the best options for landlords who want to see a good return on their investment is short-term rental. Giving property owners the chance to boost their income and maximise their profits, short-term rental is perfect for landlords looking for a great investment. Keep reading to find out more.
Rent vs property value
Over the past couple of decades, property prices in the UK have skyrocketed. Many parts of the country have seen homes rise in value by tens of thousands of pounds every year, giving property owners great returns on their investments in the process.
As a result, many landlords have relied on long-term profits, rather than rental income, when it comes to seeing a return on their investment. However, over the last few years, house prices in the UK have begun to stabilise. In some parts of the country, they’ve even begun to fall. This means that landlords are having to look for alternative ways to make money, and many have switched to short-term rentals as a result.
Short-term rentals generally bring in much more income than long-term lets. Short-term lets are often used by business people and those taking up work or educational opportunities in a new city. Thanks to the convenience they offer, landlords can ask for higher rents and so see a better return on their investment.
One of the main reasons that landlords opt for long-term lets over short-term rentals is that they believe it’s easier to manage long-term tenants. Renters staying in a property for a year or two generally need less attention and the properties themselves will require less professional cleaning and less maintenance.
However, with proper property management, short-term rentals can be just as easy and just as stress-free as long-term lets. Hiring a professional management service will ensure your property is well cared for and your tenants are looked after.
In general, those who take up short-term rentals are professionals or people looking for temporary accommodation as part of a relocation. This higher quality of tenant means that you’re less likely to have problems during the letting period and that your property is more likely to be left in a good state when the period comes to an end. Again, a professional management company would be able to find you good-quality tenants and manage their residencies from start to finish.
Offering the chance to boost rental income and attract high-quality tenants, short-term lets are a great option for landlords looking to make the most of their investment. Find out more by exploring our site or getting in touch with a member of our team.
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