If you want to open a short-term rental, and you live in the US, you hit the jackpot. US short-term rental landlords have the highest earnings in the world. In fact, the average income for such a landlord is $44,000 a year.
That is, until you hear the horror stories of parties and HOAs ganging up to stop your rental. And yet, the grass isn't always greener on the long-term rental side; tenants can trash and ruin your home for months on end.
Short-term rental management and long-term rental management have their pluses and minuses. So which should you choose?
Today, we give a few reasons why Cleveland, Georgia landlords should go for one or the other.
Short-Term Rental Management Can Be Lucrative
If you play your cards right, the rental income comparison might be a 3:1 ratio in favor of vacation rentals. One of the short-term rental benefits is that you often earn significantly more per night.
Long-Term Rentals Are More Stable
However, this depends heavily on vacation seasons. Usually, you've got a busy summer, winter, and holidays. The times in between will be slow with frequent, long vacancies.
This is one of the long-term rental advantages. When a tenant signs a contract, they owe you rent for a full calendar year.
Turnover Is Good for the Short-Term
Preventing turnover is critical for a long-term rental, but not for the short-term. More turnover, actually, is better. This means more guests and multiple short stays that average out to be more profitable.
Long-Term Rentals Keep Reliable People Longer
Alas, having so many guests every month means you never know what you're going to get. There will be a fair share of crazies, folks who drive up your maintenance and insurance costs. Meanwhile, long-term rentals can keep a good, reliable tenant for a full year.
Eviction Isn't an Issue for Vacationers
The eviction moratorium during the pandemic was a death blow to landlords. It allowed millions of tenants to live rent-free.
Even without a moratorium, tenants can remain in a property rent-free during the months-long eviction process. Short-term rentals ensure those disreputable tenants are gone by Monday.
Vacation Rentals Can Be Oversaturated
Unfortunately, the popularity of short-term rentals has become a disadvantage. With so many on the market, competition is fierce. Prices can sometimes suffer as a result.
Short-Term Rentals May Be Unpopular
Short-term rentals have a bit of a stigma amongst HOAs and neighbor homeowners. Owning one could lead to some unwanted conflict. Ever-restrictive legislation on short-term rentals may slowly choke the life out of your investment.
Find Rental Management Strategies at PMI Mountain Gateway
Short-term rental management has many benefits, such as being more lucrative and giving less power to bad tenants. However, long-term rental advantages include stability and less market saturation. Eviction can be very tricky for long-term rentals, while a vengeful HOA can as well for short-term rentals.
PMI Mountain Gateway in Cleveland, Georgia provides best-in-class property management services for landlords and investors. Our excellent customer service makes you feel safe, and our expertise makes your investments soar. Find out what your rental's worth with a free rental analysis.
