Succeeding in the Real Estate trade is by no means an easy task. Those who have been in the industry can assure you that it takes more than just years of experience and industry knowledge to stay ahead of the game and the seemingly endless competition.
Fortunately for those of you seeking to escape the clutches of strenuous routine, the never ending cliches of everyday life and instead, get your holiday-mode on, JZ Vacation Rentals is equipped not only with a plethora of fully furnished, highly maintained, comfortable, illustrious luxury vacation homes, but also the necessary tools to always ensure optimal quality service, and boast of a team of experts with both the passion and drive to meet your every demand with an acute sense of professionalism, unwavering dedication and a warm and friendly smile to top it off.
In this article, we will be discussing and answering a question that surely has been asked several times by countless proprietors, and that question is, what is more lucrative: Traditional Long-Term Rentals or Short-Term Rentals? Let’s jump right into it.
WHAT IS A SHORT-TERM VACATION RENTAL?
Before anything else, let’s familiarize ourselves with the definition of a short-term rental. Before understanding the difference between the two, it’s a must that you familiarize yourself with the definition of a Short-Term Rentals aka vacation rental. In definition, it is the leasing out of a furnished property on a temporary or short term basis. Determined by the following factors; the owner, location and some others, these properties are given out on rent on a nightly or weekly basis depending on the requirement of the customer. It is a known fact that many proprietors of vacation rentals make their holiday homes available throughout the year whenever they themselves aren’t using it themselves. Having become a well known alternative to hotels in the last two decades, Vacation Rentals have notable success through websites such as Airbnb.
WHAT ARE THE PROS OF VACATION RENTALS?
Now that we’ve understood what a short-term or vacation rental is, let’s see what benefits it hosts.
For proprietors who only have a certain period of the calendar year blocked out for vacationing, vacation renting can prove to be a saving grace. Not only do you get to enjoy the benefits of an increased income, but you also get to be in charge of the schedule while giving your short term tenants a place to call home on a temporary basis.
- Less Interior Hustle and Bustle
Due to the nature of vacation rentals; ranging from a number of days to a couple of weeks at maximum, it is safe to say that you will not have to worry about the guests having the need to redecorate or re-arrange your property as they see fit, at least for the most part.
- You can almost hear the cash register
Understanding of the seasons- high and low should give you a sense on how to fluctuate rates depending on the demand. Setting smaller tenancy lengths during the high season allows you to reap greater returns and that goes without saying.
- You’re playing your part efficiently
Sharing economy and its positive effects is something that is discussed and spoken about a lot within most areas of society in this day and age. By renting out your property to vacationers you’re sending a clear message that earns you the title of an innovator who contributes to this contemporary way of life.
Now that we’ve taken the time to explain what Vacation Rentals are and the host of benefits one can hope to gain from them, let’s discuss its impact versus traditional rentals.
WHAT ARE LONG-TERM AKA TRADITIONAL RENTALS AND WHY AREN’T THEY AS LUCRATIVE AS SHORT-TERM VACATION RENTALS?
In definition, unlike its counterpart, traditional or long term rental refers to rentals that’s lease period that spans an entire month or longer. In this scenario tenants pay the proprietor on a monthly basis while also taking care of additional expenses such as utility bills.
While there are some benefits to Traditional Long Term Renting such as the ability to charge higher security deposits, no necessity to furnish, less turnover and consistency in cash flow and revenue, these factors are generally outshone by Short Term Vacation Renting due to some of the following factors that are in short, the Cons of Long Term Renting.
- Proprietor has Less Flexibility
If you’re looking to make some additional income while also enjoying the benefits of taking the time to relax within the luxuries and comfort of your own property during those well earned off days, then Traditional Renting is one of your biggest enemies. You won’t have the option of asking your tenant to vacate the premises for your leisurely time every once in a while if they’ll be occupying your ‘holiday home’ on a long term basis. Now isn’t that a bummer?
- Proprietor has Less Control over the Property
While nothing can go wrong; most of the time anyway, during a rental stay, there is a clear contrast between the short-term and long-term rental options especially when it comes to checking up on your property. During a short-term rental period, as the property owner you get to inspect and make necessary adjustments and maintain your property on a regular basis between vacationing guests, thereby making sure the quality of your holiday home is always on an optimal level. This is definitely not possible when you have tenants staying on the long-term basis, especially because you will have to give them prior notice before deciding to show up at your doorstep to play the role of the inspector.
- Location Restrictions
Depending on the whereabouts of your property, different laws, restrictions and licenses have to be taken into account before leasing out on the long-term is possible. These factors can prove to be troublesome considering they are far more strict and costly in comparison to the amount of determining factors that come into play during short term renting.
- Finding the right tenant can be a grueling process
It may sound simple, but there is a process that needs to be adhered to when finding the right tenant. Firstly, you need to be sure that the people moving in are trustworthy, respectable and above all responsible. Not only will you be going through a list of tenants in search of those who are likely to meet your standards and expectations, but the contracting and vetting process can prove long and tiresome. In comparison, it is a much easier process with short-term vacation renting especially thanks to tools like instant booking.
In conclusion, based off the facts listed in this article, it is safe to say that Short Term Vacation Renting can without a reasonable doubt be more lucrative for proprietors seeking means of making extra income while also having the flexibility to spend quality time at their holiday home away from home, as opposed to the complications and restrictions that come into play when renting out properties in a long-term or traditional format.
If you have any doubts, questions or need more information from our experts, do not hesitate to get in touch with us. Allow us to be the bridge that connects your property with those in search of a grand escape.
Click here to see Alex Zemianek, CEO of JZ Vacation Rentals, explanation from the Fasterhouse explanation: