With the short-term rental market raking in almost $100 billion in 2021, there is a temptation to set all your leases as short-term. Though, long-term lease agreements have their benefits, which could appeal to some people. So, what is the difference between the two, and why would you pick either?
Below, we run through a few of the things you might want to think about when it comes to short-and-long-term rental leases. As you read through, think about whether each applies to you and which option you find more appealing.
Short-Term Tenants Are Interesting
Ignoring the real estate itself, it might be you want to engage with people from all over the country or world. Short-term rentals often bring in unique people from different cultures who might teach you a thing or two about who they are.
If this appeals to you, short-term rentals will help you expand your horizons.
Short-Term Rentals Allow You to Pivot
Short-term lease agreements are better for people starting out when they want to find out what they can charge for a place. As the lease comes to a close fast, you can then change its terms for the next rental period and see if people still want the location. You can find the best terms that work for both you and the renters.
Short-Term Rentals Get You More Money
Short-term lease agreements are often going to earn you a little extra cash compared to longer-term contracts. There is an understanding that these leases are for people in unique situations and thus the rent is often higher.
Long-Term Rentals Are Stable
There are many different kinds of leases, even in long-term rentals. Still, long-term leases are more often stable for both the renter and the landlord. Both parties can understand they will get what they need for an extended period without much hassle.
Long-Term Rentals Take Less Work
If you own a rental property, chances are high that you do not want to have to work too hard on it. Shifting people in and out every few months with a short-term lease can do that. If instead, you opt for a long-term lease, you can enjoy the passive income every month and only step in if something needs maintenance.
What you want out of a rental will determine whether you would prefer short or long-term rentals. While the above gives some big differences, the major thing you will want to think about is how much work you want to put in. Short-term rentals will get you more money, but are less stable and demand more work.
The choice is yours to make.
Organizing Long-Term Lease Agreements
With the above in mind, you are going to need to make a choice. Do you want to invest in short or long-term lease agreements in the Salt Lake City area? In the end, we cannot decide for you, but we can help you manage the properties.
Our people are ready to help you get started in the world of leases and rentals. We have plenty of experience getting people up and running. All you need to do is give us a call and we can talk to you about your options.