85% of Americans take at least one annual vacation, so owning a short-term rental unit is a great way to reach renters year-round.
However, sometimes it can be challenging to determine the difference between short-term and long-term rental vacation management. Here, we're going to discuss the similarities and differences that you need to know, so read on to learn how you can best profit from your vacation property.
The Pros of Short-Term Rentals
In Florida, a "short-term rental" legally limits occupation to 181 consecutive days or fewer. Anything above that is considered a long-term rental.
Short-term rental units in the Sunshine State require zoning approval but not much else. This makes them a convenient option for landlords who don't want to undergo extensive licensing processes.
Fewer tenant disputes are a massive advantage of short-term rentals. If you don't get along with someone, they will be gone within a couple of months.
You also have more flexibility to visit the property and make improvements between tenants. With yearlong leases, you would need to notify and inconvenience the tenants living there. If there are some short vacancy periods between renters, you can simply go in during those timeframes.
Upgrades are also easier because of this, so you can improve your property over time!
Essentially, short-term rental options are ideal for landlords who:
- Want to make improvements frequently (and potentially ultimately flip the property)
- Don't want to contend with complaints and requirements from long-term tenants
- Want a higher cash flow within a short timeframe
- Don't mind a bit of vacancy between tenants for maintenance and improvements
Long-Term Rental: Some Advantages to Know
While short-term rentals have a higher cash flow than longer leases, they also have a high risk of prolonged vacancies. If you have a long-term lease, you won't need to worry about leaving the unit unoccupied for an entire year. You'll have more time to find your next tenant with the help of property managers.
You also won't need to worry about losing money because of no rental income or needing to pay for utilities at a vacant property. It's a win-win!
Long-term property rentals also have more tenant screening options than short-term ones do. You won't need to have property managers rush background checks, which means that you can find the best possible tenants out there.
You can rest assured that your property is taken care of. Better screenings also mean a lower likelihood of legal issues so that all occupants can make the most of their vacations.
Long-term rentals are ideal for:
- Landlords concerned about vacancy rates
- People who want meticulous background checks
- Less potentially-confusing turnaround
Manage Your Fort Lauderdale, Florida Rental Unit
Now that you know the difference between short-term and long-term rental management, it's time to begin turning the highest possible profit from your property investment. Our rental vacation management professionals have all the tools you need for success including tenant screening technologies, expert lease drafting techniques, and connections with maintenance and cleaning crews.
Schedule a free consultation with PMI Matching Property to learn more about profiting from your rental unit.
