Long-Term vs Short-Term Property Rentals: Everything You Need To Know

Long-term rentals are the conventional unfurnished property leased out for at least six months. Usually, most people rent long-term rentals for one year or more. On the other hand, short-term rentals or vacation rentals are furnished and leased out for a short period to guests, typically through holiday rental property management companies. This can be for as little as a few days or weeks. Both types of properties can be categorised as real estate investments.

You can receive income from both properties however, the main difference is that the income from long-term rentals is more consistent. Please continue reading to find out more about short and long-term property rentals. 

Pros And Cons Of Short-Term Rentals

Recently, short-term property rental has been on the rise. More property owners choose to let out their property to guests for shorter periods and can potentially get more bookings, therefore, making it more lucrative than long-term property rentals. Below are some advantages and disadvantages of short-term rentals.

Pros

• It can be your second home: Aside from a short-term rental being an investment that earns you income, you can also use it as your family holiday home. Instead of paying for hotel accommodation while on vacation, your family can stay here. It also allows you more flexibility to use your property as you please.
• You can adjust the prices: One of the perks of short-term rentals is that you can adjust the prices to suit your needs. For instance, you can raise the rent price to maximise your profit based on the season. 
• Managing them is becoming easier: Multiple affordable platforms make it easy to advertise your property. Technological advancements have also helped make them easier to manage.
• High-income potential: You can make more money in rent with short-term rentals, especially on weekends and during holidays. However, the location of your property also plays a significant role in how much you can make. However generally, with the right tools and knowledge, you can make more income from short-term rentals.
• Tax breaks and deductions: You can get plenty of deductible property expenses and tax benefits when you are not long-term renting your property. Make sure you confirm the rules and regulations of your local authority on this.

Cons

• There are so many things you need to mange
• There is plenty of competition 
• You are not guaranteed to make any income 
• Upgrades and maintenance are costly

Which One Should You Choose?

Both long-term and short-term rentals have their upsides and downsides. 

For instance, long-term rentals offer you more consistent and reliable income but are less flexible. On the other hand, short-term rentals offer unrivalled flexibility. 

In addition to offering a higher rental income potential, short-term rentals are also an excellent investment in real estate. The best part is that you do not need to own a second home to rent it out short term. 

However, keep in mind that choosing to go with short-term rentals can mean you may end up having too many things to manage.

Not sure which option to pick? You can also choose both: you can rent out your property long-term, and when it’s vacant, you can still rent it out to travellers as a short-term rental. 

If you are conflicted on the perfect rental option, short-term rentals may be a better choice. They have more benefits to offer, and with the right tools and proper planning, they can be a steady source of income. 

Check Out The Best Holiday Rentals In Australia

Short-term rentals not only present you with an excellent investment opportunity, but they are also a better option than hotels for travellers. They offer you more privacy and often feel like a second home. Depending on your needs and budget, there are plenty of short-term stays to choose from. At bnbbooking, we are well equipped and experienced in helping people to maximise their rental income from their holidays home when not in use.

If you are looking to rent out your property to holidaymakers, please call us at bnbbooking today on 1300 421 029 or leave an enquiry and we will get back to you as soon as possible.