Two growing sectors of the lodging industry are short and long-term rental properties. Thanks to the advancement of technology and the internet, websites like Airbnb and Zillow have made it much easier for ordinary people with no industry experience to break into the field and purchase rental properties. The big question for anyone looking to break into this industry is whether to go with a short-term or long-term rental. Long-term rental properties are usually seen as more stable and predictable businesses while short-term properties have higher earnings upside. Both types have their own advantages, but the decisions will ultimately come down to each individual and their own unique goals.
Long-Term Rental Properties Advantages
Regular Income
One of the biggest advantages is more consistent rental income. The constant and steady stream of cash will make it easier to budget. Tenants usually stay at long-term rental properties for at least a few months which is a much longer average period of time compared to short-term rental properties. There are going to be expected repairs and other maintenance expenses throughout the year, so the routine monthly flow of cash will make the financial preparations easier.
Better Management Fees
Professional management companies generally charge much lower rates for long-term rentals compared to short-term rentals. This is because long-term rentals have less turnover among the tenants since they rent it for a longer duration. Thus, management companies will have less responsibility because they won’t be managing the constant guest turnover that short-term rental properties experience.
Reduced Operating Expenses
The general expectation is that tenants using long-term rentals will be responsible for simple tasks like keeping the property clean, taking care of the yard, and paying their utilities bill. This makes it easier for property managers because the guests will often view the property more like their own personal home. This generally leads to fewer problems because these tenants are usually more careful than those staying there for shorter periods of time.
Short-Term Rental Properties Advantages
Higher Income Potential
Guests won’t be staying for long durations of time, so prices can be adjusted more frequently to make sure they are staying current with the market demands. Short-term rentals have the potential to generate two to three times the amount of rent revenue compared to long-term rentals because the margins are higher.
Regular Maintenance
There is a higher level of turnover among guests in short-term rentals, so the rooms will constantly be
checked between each guest stay. Professional maintenance organizations will be able to identify and fix minor problems. The property will also be cleaned between each guest’s stay which will help it stay in good condition.
Flexibility
Owners that want to use the property for personal use will have greater opportunities to set aside periods of time for themselves with short term rentals. It also makes it more convenient when trying to sell a property because buyers may prefer to not have a tenant already there.
Hospitality Products are Important for Rental Properties
Whether you own a short-term or long-term rental property, it will still be important for you to have good-quality linens to keep your guests satisfied. Sheets, blankets, pillows, and top covers are some of the many important types of bed linens that the properties will need. Other important hospitality products like amenities, lodging accessories, and personal care accessories will also be important for your property to offer. InnStyle is here to help with all your linen and hospitality needs. Please give them a call and speak with one of their account managers about what kinds of products you are looking for. They can be reached at 267-354-6020 or 800-877-4667. Their website is https://www.innstyle.com/.