Differences between short, mid & long term rentals
It can be difficult to know sometimes if your property is best suited to renting short term, mid term or long term and what the pros and cons of each are.
- Short-term rentals – typically are for 1 night or more
- Mid-term rentals – typically are for between 1-5 months
- Long-term rentals – typically are 6 months or more
Short-term rental properties have to be both fully furnished and fully equipped (from kitchen appliances to soap and toilet paper) so that any guest staying there doesn’t need to bring anything. This means more upfront investment from the property owner initially to get it ready and more ongoing hassle & costs with guests coming and going and needing to organise cleaning and laundry, provide internet and so on. On the plus side it usually also means overall higher income which is paid in advance so no risk of tenant default.
Properties best suited for short term rentals tend to be small to mid sized apartments in locations with large numbers of tourists.
Long term rentals on the other hand don’t usually need to be furnished (depends on the market standard in your location) and once a good tenant is found that pays rent on time you will receive stable income every month with minimal hassle (assuming there are no maintenance issues).
Mid term rentals sit somewhere in between, they can be either unfurnished or completely equipped (usually the later) depending on the needs of the tenant.
Sim Property provides property management services for both short, mid and long term rental properties. Contact us for more information and see what is most suitable for your property.