Short Term Vs. Long Term Rentals

Short-term rentals have always been a popular investment, but in recent years, they have become even more popular as vacation rental alternatives to hotel chains. But before you invest in a short-term rental, there are a few things you should consider.

One thing to keep in mind is that short-term rentals often require more repairs and maintenance than long-term rentals. This is because tenants generally don't treat short-term rentals as their own homes the way long-term tenants do. Additionally, short-term rentals always need someone available 24/7 to deal with any guest needs that may arise. Of course, you could hire a property management company to take care of these things, but that would take away from your profits and typically costs 10%-30% of rents.

Another consideration is that while short-term rentals usually have a higher return on investment than long-term rentals, they also come with higher vacancy rates, advertising costs, cleaning costs, and maintenance costs. On the other hand, owning a vacation property that you can enjoy yourself may be worth the extra work.

Ultimately, there is no one-size-fits-all approach to real estate investing. Consider what works for you and make the best choice for your goals.

Let’s discuss you and see which investment model you are better suited for.

Buying V. Renting: What is Better for You?

Home ownership is the American Dream, right? Owning a place to call home, being able to paint the walls purple if you like, that’s what everyone wants. Isn’t it? The reality is there are pros and cons for buying a house. Understanding them can help you make the best decision for your goals.

Pros for Buying

This might seem obvious, but there are 3 main reasons to buy a home.

1. Financial Advantages – A home is an asset which should appreciate over time, providing wealth building opportunities.

2. Pride of Ownership - As a home owner, you control the environment in which you live. If you want those purple walls or granite countertop….you can do it.

3. Roots - Regardless of whether you have children, there is a natural desire to be part of a community: to have a local coffee shop, dry cleaners, bar.

Cons for Buying

As with all things, there are considerations which mean this isn’t the right time to buy a home.

1. Increased Monthly Costs – In some instances your monthly mortgage will be larger than comparable rent. Most of our local markets have comparable rent v. mortgage prices as rentals have increased significantly as inventory is low.

2. Freedom - A renter can move from one city or state to another very easily which allows you to move when you need/want to.

3. Upkeep - You are responsible for the repairs and upkeep of the property. Unexpected problems can become quite expensive if you are unprepared.

There are some wonderful reasons to buy a home; before you decide that it’s time to buy, give some thought to your lifestyle and goals, if they are in line with the advantages of home ownership, then time to go house hunting!

Let’s talk and decide if now is the time to buy. I also help clients who are not quite ready to find a suitable rental.