Do you own an empty property all or part of the year and plan to use rental to make this property profitable? Are you hesitating between short-term and long-term rental? These two models are interesting but depending on the characteristics of your home, can offer big differences in profitability. Let's see together how to easily compare short and long-term rentals in just a few clicks.
The advantages and disadvantages of long-term rental:
Long-term rental is certainly the most popular type of rental since it is deemed to be more secure. By renting for a long period, you ensure that you have rather reliable rental income over long periods. The main concession is made on the amount of income: by renting for the long term, you must assume rental income lower than the short-term model.
What are the advantages of LLD Long Term Rental?
- Simplified daily management
- Long-term rental income
- Reduced daily housing maintenance
- More invested tenants
What are the disadvantages of LLD Long Term Rental?
- Lower rental income for an equivalent period
- Long-term commitment with your tenant
- Trust in your tenant is imperative
- Finding a new tenant takes longer
The advantages and disadvantages of short-term rental:
Short-term and seasonal rental will be considered here as synonyms. Short-term rental involves stays of a few days to a few weeks, or even exceptionally a few months. The ability to find tenants and offer a high return will depend on a multitude of factors specific to the rented accommodation. However, if the constraints exist, the short-term rental is known, rightly, to offer much better returns vis-à-vis the LLD.
What are the advantages of Short Term Rental?
- Significantly higher yields than LLD
- The exchange and regular meeting of new tenants
- More flexibility in managing your accommodation
- Greater control of home life
What are the disadvantages of Short Term Rental?
- Time-consuming daily management
- Less respect for housing on the part of tenants
- Permanent search for new tenants
- Legal limits according to cities
Compare long and short term rental in a few clicks:
During your steps to rent out your accommodation, you will quickly have to choose between short and long-term rental. The profitability of the investment is central here and can be difficult to estimate for anyone who is not a real estate rental professional. We suggest you:
- Carry out a long-term rental profitability study using online solutions such as Horiz.io. We also present this software online in the article " Calculate the return on your investment with Horiz"
- Request a rental income estimate at the YourHostHelper branch closest to you. You will quickly receive a tailor-made study for your property for seasonal rental according to the local market and for the year, free of charge and without obligation.
- You will thus have a concrete overview of the rental income of your rental property on both models. The estimated profitability will then be concrete and you will only have to weigh the pros and cons based on the advantages and disadvantages of each model mentioned above.
