As an owner of a beautiful investment property in Australia, you can consider yourself quite lucky.
Australia is such a favourite global tourism spot that finding good short-term tenants for your property is not difficult at all.
In fact, letting your property out for short-terms may be the best financial decision you can take to make an excellent return on the investment you have locked up in the house or apartment. Still mulling over whether to go for short-term or long-term renting?
Short Term Renting
If you want to use the property at certain times of the year, then short-term rental is best for you because you can simply avoid taking in tenants when you need the home free for personal use. With a long-term rental you lose this flexibility although you avoid the need to look for reliable tenants frequently.
"You can simply avoid taking in tenants when you need the home free for personal use"
A short-term rental strategy has your home occupied only for as much time of the year as you choose. If you would like your home to experience less wear and tear, simply avoid letting it out throughout the year. You lack this flexibility with the long-term rental strategy.
Better rental incomes are usually a characteristic of the short-term rental strategy. Remember that you can take advantage of seasonal demand and peak - season pricing with short-term tenants. You cannot have a differential rental rate for a long-term tenant. Market experts state that, when you look at a longer period, the total incomes earned via short-term rentals surpasses the long-term strategy. This is one very critical factor to consider in favour of the former.
Long Term Renting
However, there are a couple of downsides to short-term renting as well. Mainly, you cannot avoid furnishing the home because your tenants are most likely to be tourists who expect a fully furnished place of stay.
Second, the maintenance bills are yours to pay. With a long-term rental tenant in place at your property, you can leave all of these payments to them. This is an additional cost to consider when you choose the short-term rental strategy.
Looking at the big picture, it is clear that if you want to maximise your property's return and have more flexibility, short-term rentals are the perfect option for you. This is a great strategy to adopt especially if you own a home in a scenic spot where tourist population is high and you only want to use it occasionally through the year.
For more information/questions regarding short term rentals.
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MadeComfy provides an end-to-end property management service, which means property owners don’t need to do a thing when they hand over their keys. MadeComfy makes the process of earning greater returns from short-term renting effortless, achieving up to 40% more than long-term rentals and self-managed Airbnb listings. Get in touch with us today to see how we can help!