(Why)Long-term Stays Gain Popularity Today
Long-term stays are prevalent nowadays. Everyone from lone tourists to traveling workers to families looking for a change of scenery book long-term stays.
If you’re thinking about buying a house, a long-term rental is an excellent approach to generate a steady, positive income flow. It has several advantages, and once you know how to get started, it can provide a more consistent income stream than short-term rentals.
But what exactly is a long-term rental, what are the advantages, and how can you get started? In this comprehensive guide, we’ll go over all of this and more. First-time investor or a seasoned pro trying to enter into the world of long-term rentals? We’ve got you covered.
Learn how our staff makes each PlistHub home functional for stays of a month or more.
Do you know how good it feels to snuggle into a perfectly made-up bed? Or how about nightstands with drawers for your personal belongings? It’s all on purpose. When it comes to establishing comfortable stays, interior design is one of the most significant factors to consider. Our residents stay in Lagos, Nigeria, for a month or longer. Thus, most homes are listed with us expressly for more extended periods.
Although it’s tempting to rush into style and make a home look lovely, we always think about our tenants and how they’ll use our long-term rentals while they’re here.
What are long-term vacation rental properties?
A long-term rental property is usually rented to a long-term tenancy for a long time. Depending on the landlord or property management business, this could be anywhere from 30 days to 6 months (or more).
A long-term rental can be furnished or unfurnished and used for vacations, work relocation, or those between houses.
When compared to a short-term rental, a long-term rental might give tenants an immediate sense of relaxation. It can provide a sense of “home away from home” and fill in the gaps when something unexpected occurs.
Long-term rentals, on the whole, entail less churn, more constancy, and, presumably, fewer headaches.
Benefits of a Long-term Rental
Vacation rentals are viewed as a profitable rental strategy in real estate. Long-term rentals come in various forms, from turn-key and fully furnished to those that demand a little more effort.
Let’s look at the advantages of long-term rentals now that we’ve answered the question, “What is considered a long-term rental?” Let’s look at some of the ways long-term rentals benefit landlords, from a stable income to tax savings.
- Consistent Earnings
When deciding between a holiday rental and a long-term rental, one of the most important factors to consider is income consistency. The income from a short-term holiday rental can be unpredictable. You can find yourself renting out your house or apartment for a week over spring break or a weekend here and there. If a tenant is seeking a long-term rental, it means the property owner has full occupancy all of the time (or at least for a long time), resulting in a consistent income.
- Eliminate Debt
Debt from an investment property or two can quickly mount if you’re a real estate investor working in the rental market. In comparison to a short-term rental, a long-term rental allows you to be more hands-off. You’ll be able to pay off debt faster if you have steady and positive cash flow, which will allow you to invest in new properties (and gain additional income). Not only may cash from a rental property be used to pay down your mortgage but it can also be used for other purposes. A long-term rental can help you achieve financial independence, whether you’re preparing for retirement or paying off credit card debt.
- Cash Flow
A long-term rental property’s ultimate purpose is to generate positive cash flow. Of course, you probably want your tenants to be happy and provide an ideal living situation. However, you and your long-term tenant will be satisfied if you can generate positive cash flow with your long-term rental property. To do so, make sure you’re making a profit after all of your rental property’s expenses have been paid.
- Reductions in taxes
Being a landlord comes with a slew of tax advantages. Landlords, for example, can deduct travel expenses linked to the rental business, such as going to your rental property to handle a tenant issue. Repair costs, such as replacing broken windows or repairing gutters or leaks, are deductible. The most typical deductible item is engaging, such as mortgage interest payments or loan and credit card interest accrued due to rental activity.
See How PlistHub Manage Long-Term Stays
- Target Market
Knowing how to get renters begins with identifying our target demographic. Some renters may stay in the neighborhood for a long time for education, which is excellent if we have a property close to the college. Others may be visiting the area for work and require simple public transportation access. Knowing our target demographic helps us sell the unique features of your investment property more effectively.
- Fine-tuned Details
One of the more time-consuming aspects of being a landlord is dealing with the intricacies of a long-term rental. You’ll need to figure out things like the ideal rental price and the local fair market rate. Depending on your location, you may need to obtain specific property management licenses and permits. These things may seem tedious at first, but after you’ve figured them out, the possibilities for your rental property are endless.
You’ll want to plan out your budget and expenses as you start your home renting business. Aside from the cost of the property, there are a few other costs to consider:
-Repairs and maintenance
-Taxes on real estate
-Loan interest Insurance
Costs of lawn and landscaping
- Furnishing and Decor
Tenants will enjoy the thoughtful touches and attention to detail, whether you’re making sure to include all of the kitchen staples or creating a warm living room ambiance. Keep things clean, essential, and efficient if you’re renting for a lengthy time. Each piece of furniture, linen, or appliance should have a specific purpose and assist your tenant in the long run.
- Website and social media
Getting your rental home a social media presence and a website is a terrific way to get started with long-term rentals. It’s possible to move from tenant to tenant without it, especially if you’re following the traditional leasing method. An online presence not only aids in organically spreading the word to potential tenants. But it also serves as a reference source for previous renters to pass on to their friends and family (which can help generate more business in the future and make your property stand out in the rental market).
Long-Term Rentals with Us
Without lifting a finger, PlistHub provides full-service property management and care. We treat your house and property as if it were our own when you sign a revenue-share lease with us. Not only do we look after your property, but we also find you the ideal tenants through a thorough screening process. We can provide you with a hands-off approach if that’s what you’re looking for. Property management is a lot of work, but it’s easier if you divide the responsibilities.
You can advertise your rental on bulletin boards in neighborhood businesses, in newspapers, through word of mouth, and with “for rent” signs. There are also a few rental websites that may assist you in marketing your property so that you can fill any vacancies.
Ready to partner with us and start earning? Add a new listing now.