Tuesday, 27 June 2017

Short Term Rental or Long Term Rental Which is Better

Written by Posted On Thursday, 04 September 2014 18:30
Condos near Disney World Condos near Disney World Picture provided by www.orlandovacation.com

Today I received a call from a gentleman who owns a vacation home near Disney World, and for the past 3 years he has had a long term renter in the condo. Now that his tenant is possibly leaving he is considering renting it out for short term rentals. Both long term and short term rental markets have their advantages and disadvantages:

Advantages of Short Term Rental over Long Term Rentals

  • 1)      A good property manager should be able to get you more money on an annual basis than you will receive from a long term renter.

 

  • 2)      Here in Orlando our average client for a condo stays a little less than a week, so the property manager can get into the property more often and stay on top of maintenance issues. Where as in a long term rental the renter might not allow the property manager in the unit but only a few times a year.

 

  • 3)      Renting your condo or vacation home out to vacationers allows you to visit your property more often and enjoy it yourself. If you have a long term renter in your vacation home then you will more than likely need to rent another unit or find a hotel if you desire to visit this area yourself.

 

  • 4)      You can donate the use of the vacation home to charities in your local area and use this donation as tax write offs.

 

  • 5)      If you desire to sell your unit, and you have a lot of future bookings in place this make it more attractive to other investors. If you try and sell your unit with a long term tenant in the unit this will definitely deter a lot of potential buyers.

Advantage of Long Term Rentals vs short term rental

  • 1)      If the condo or vacation home is not furnished then you will need to have the place furnished and this can cost some money. In a short term rental most renters prefer to furnish the house with their belongings.

 

  • 2)      In a long term rental the renter usually pays for monthly utility bills, in short term rentals the owner pays these bills.

 

  • 3)      A long term tenant usually provides more stability from month to month. In a vacation rental, there are usually high seasons and low seasons which do not offer as much stability.

All in all, it really depends on you as an owner and the renters you attract. If you buy a vacation home in a favorite vacation spot of yours then you will definitely want to do short term rentals so you can use the property yourself. Or if you are unlucky and attract a long term renter that his high maintenance then the short term rentals will look very good to you as well; however, if you attract a long term renter that pays on time and does not call too often with maintenance issues then the long term rentals make a lot of sense. It really depends upon you the owner, yes both options have their advantages and disadvantages.

If you have a vacation home in the Orlando area near Disney World. I would love to talk with you about the management of your unit. My name is Trey Duling, and I have been a property manager and vacation rental expert here in Orlando since 2001. Please call me at1-800-641-4008.

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Trey Duling

Trey Duling is the owner of Orlandovacation.com. He has been managing and renting vacation homes in Orlando since 2001. If you have a vacation home in the Orlando area and you are looking for a property manager give Trey a call at 1-800-633-7108 ext 7007.

www.orlandovacation.com
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