Landlord will often approach us because they have a furnished rental property and they will ask if they should rent it out short term or long term. Let me give you some things to think about that might help you make that same decision if you find yourself in a similar situation.
Things to consider with a Long Term Rental vs. Short Term Rental:
Consider the area and need for short term rentals
In order for a short term rental to work, you will need to be in an area where that kind of property is attractive. Usually, these are resort areas such as places on the beach. However, there are some opportunities around in Tampa Bay around MacDill Air Force Base for officers who may be traveling for short assignment periods.
Are you Legal? Make sure you are permitted to do a short term rental where your property is located. There may be restrictions, so check with municipal codes and make sure your HOA or condo association rules and regulations allow short term rentals.
Think about income
On a long term rental, you have lower rents but the property is continually rented. On a short term rental, the rent is often dramatically higher, but there are higher costs to consider as well. A short term property might have higher management fees, maid fees and laundry fees. The property will not be continually rented throughout the year. When you compare the two, the annual income is often about the same with long term rentals maybe coming out just a bit ahead.
Florida has a weak insurance market. You might find on a rental property that you can lose hazard coverage if the property is vacant for more than 30 days. With a long term rental, that would probably not apply, but with a short term rental it could be an issue. Check with your insurance agent first.
Your own residence:
If you want to stay part of the year in the rental property, then obviously a short term rental is the only way to go. If you have a long term rental, you will not be able to access the property for your own use because you will have a tenant in place.
I hope these considerations have helped you decide whether your property is best suited for a short term rental or a long term lease. If you have any questions on today’s blog or any issues pertaining to property management, please contact us at Hoffman Realty.