When you decide to rent out your property, there are various important decisions that need to be made. One of these decisions is whether your property will be a long-term or short-term rental.
An empty, unused home offers great opportunities for you to capitalize on. Depending on the choice you make, the management, maintenance, furnishing, and rental income returns may be impacted. If you’re still unsure which type of rental property is ideal for your needs, this quick comparison may help you.
Rental income
Another factor that differentiates these two property types is the rental income potential. If you’re someone who prefers consistent income over a longer period of time, long-term renting is ideal for you. This ensures that you have a steady source of income, guaranteed for as long as the tenant’s contract lasts instead of having to worry about only earning during the busy seasons.
While short-term rentals may only be occupied during certain seasons when people are flocking to the city looking for vacation homes, they offer higher overall rental income potential. Research suggests that short-term vacation rentals yield 30% more profits for homeowners and drive up rents in the neighborhood too.
Short-term rentals rely on high occupancy rates to be financially viable, while long-term rentals are a great source of stable income.
The duration
The most obvious difference between both property types is how long you’ll be renting out your property for. Short-term rentals can be rented out for anywhere between one night to a couple of weeks. These function as vacation homes for eager tourists and travelers looking for an immersive Medellin experience.
Conversely, long-term rentals are often done on the basis of six or twelve-month contracts. These long-term rental agreements offer more stability and permanence.
If the property is a second home for you that you only occupy for half the year, it makes sense to rent it out as a short-term rental. If, however, you’ve purchased the property for the purpose of year-round letting and don’t plan on using it yourself, long-term renting is probably the way to go.
Management
Opting for property management services is a great way to manage your rental property. They take away the hassle of collecting rents, deciding the rental rates, and handling any maintenance issues.
Whichever type of rental property you choose, the property management needs may differ. Short-term rentals will require more frequent advertising, daily monitoring of pricing, professional housekeeping, and frequent communication with guests. On the other hand, property managers can help you collect rent, find suitable tenants, and oversee the repairs needed for your long-term rental.
Once you decide which rental property type is ideal for you, get in touch with us for maximum exposure on the real estate market, high returns, and a smooth property management process. At In House Real Estate, we offer full-service solutions to help you find suitable tenants and oversee the renting process to the very end.
Whether you’re looking for rental property management in Medellin or want to browse properties to rent in Medellin, we’ve got you covered. Check out the luxury short-term rentals and long-term rental properties we’re representing.
Take a look at our services and get started today.
