Should I Buy a Short-Term or Long-term Rental Property? | Pros & Cons

If you are interested in buying a rental property #realestateinvestors need to decide whether they should purchase a long-term rental property or a short-term #airbnb vacation rental home.

If you are a real estate investor, short-term Airbnb guru, or just curious about the difference between long-term and short-term rental properties, then this video is for you.

In this video, I’ll show you the PROS & CONS of each #investing strategy and show you my #longterm rental property and my #vacationrentalproperty, and which one I like more!

Great Article ⬇️
https://learn.roofstock.com/blog/short-term-rental-vs-long-term-rental

PROS of investing in a Short-term Vacation Rental Property:

1. You’ll own a dual-purpose vacation rental property, so if it's your second home, you can enjoy it with your friends & family and rent it out the rest of the year.
2. You have the potential to generate more income than, say a long-term rental property. Very Dependent on location, amenities, property style & furnishings.
3. Ability To Adjust and Increase Prices during high demand times
4. Airbnb vacation rental property appreciation over time

CONS to investing in a Short-term Rental Property:

1. Cities, Counties, and Communities have rules and regulations on short-term vacation rentals.
2. You’ll need to furnish the rental unit (according to LazyBoy, the average cost to furnish just the living room is $2,700-$12,000+.)
3. Hiring a property management company is more expensive (25-30% of property rental bookings.)
4. You’re now in the hospitality business - People are there to enjoy their vacation and the slightest hiccup at the property puts a damper on their vacation, which can lead to negative reviews and hinder your property's overall performance.
5. You pay all the utilities for the vacation rental property
6. Higher taxes for your short-term vacation rental home

PROS of investing in a Long-term Rental Property:

1. Consistent cash flow while the property is tenant-occupied.
2. More passive investment if properly managed or if you have a property manager in place for your rental property.
3. Tenant pays all utilities unless you pay for them in an HOA or condo association.
4. No need for spending thousands to furnish the property, you wil not need to spend any money on utilities.
5. Lower property management fees if you decide to hire a property manager.
6. Tax deductions and monthly rental income for your retirement.

CONS of investing in a Long-term Rental Property:

1. Higher vacancy costs if the property is not tenant-occupied and is vacant.
2. Difficult tenants if you are self-managing.
3. More state, county, and local rules and regulations regarding property repairs and habitability.
4. Higher chance of non-payment of rent and or possible eviction.
More national & state rules and regulations regarding posting notices, lease violations, security deposit claims.

Choosing whether to invest in a long-term rental property or short-term rental property really depends on your goals and strategy as a real estate investor. Either strategy can be very beneficial and work as a secure and profitable investment.

#shorttermrental #longtermrental #buyingarentalproperty #invest #manage #profit #jobin

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