There are two main methods that investors use when it comes to real estate: Short-term rentals and long-term rentals. Today I’m here to go over the pros and cons of each.
Long-term rentals are really easy to fill. Just put an ad out there online, interview five or six potential tenants, run their credit, do a background check, and you can lock them in for a one-year, two-year, or three-year agreement. The only thing you really have to worry about here is some yearly maintenance and you don’t have to furnish it at all.
“Believe it or not, short-term rentals have much less wear and tear.”
With short-term rentals, the ROI is much higher because of increased rates, but the type of management you’ll need involves a lot more work and is more time-consuming. Airbnb and VRBO can help you market these properties, but you’re still responsible for the turnover.
Another pro for short-term rentals is that the property has less wear and tear. They won’t be drilling holes in the wall or using the appliances every day. However, they are harder to fill on a daily, monthly, or weekly basis.
If you have any questions for me about either type of rental investment or anything else related to real estate, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.
