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 Long-term rental or vacation rental?

When the owner decides to rent his home, he must be clear about whether it will be a long-term rental, that is, for more than 1 month or a vacation rental. 

The marking of the rents varies, one year more demand and another less, therefore the owners must adapt to the opportunities that may have. 

The short-term rental or vacation rental is usually rented for a short time, weeks or nights. This type of rental requires certain conditions, it has to be furnished and accommodated to attract potential clients. 

The points in favor of this type of rental are: 

  • Greater flexibility to use the property without being an inconvenience to anyone. 
  • The tenants do not redecorate the property and it does not deteriorate so much with the use of a few days. 
  • Higher income, prices may vary depending on the high seasons in the area. 
  • Tax exemptions and deductions, many vacation rental owners can benefit from this. 

The points against short-term rental: 

  • Constant maintenance, cleaning before check-in and maintenance of the house in general. 
  • Income is not guaranteed, due to high and low seasons and demand, we can get good results or not. 
  • Competition from neighboring properties, if the area is very touristy, there will be more than one owner who wants to rent their home and there may be a price difference.

Long-term rental, tenants are looking for a home for more than a month, they take care of community expenses themselves in addition to the monthly compensation for the owner to live in their home.

Take into account to carry out long-term rental:

  • Accommodate your home for daily life, the needs are different than vacation rental clients.
  • Inform the tenants in advance and set standards for the house. The possibility of disturbing the neighbors can be a problem. It is necessary to make it very clear what can and cannot be done.

The points in favor of long term rental:

  • Regularity, each month you can count on a previously established fixed income. 
  • They are long-term insured benefits.
  • Easy management, having the same person usually will make mutual understanding easier.
  • Deductions for long term rentals are paid annually.
  • It does not need constant maintenance.
  • Furnishing may not be necessary, tenants may have their own furniture.

The cons of this type of rental:

  • Flexibility for the owner, since he has agreed with his tenants the period of stay
  • Less control of the property, even if something serious should not happen, there are fewer opportunities to revive your property
  • Danger of non-payment, there is always the possibility or that there are differences and there is not good communication


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