Long-Term Vs. Short-Term Rentals – Community Info Share

What You Need To Know About Long-Term Vs. Short-Term Rentals

By Sarnen Steinbarth

4/15/2021

When you invest time and money into a property, getting the best possible return on your investment is the main goal. This might mean opting for a short-term rental instead of a long-term rental or vice versa. Short-term rentals are becoming very popular as an alternative to pricey hotels in vacation destinations or high-tourism areas. On the flip side, long-term rentals provide more stability and consistency with year-long leases and committed renters.

The old adage “location, location, location” is spot on when deciding what direction you are going to take with your rental property. Some of the top places for short-term rentals include Tampa, Florida, Kahuku, Hawaii and San Antonio, Texas; notice these are all considered vacation areas where the weather is usually warm year-round. However, because the average worker’s earnings haven’t increased much in the last decade, there is still a high demand for rentals, especially apartments and single-family homes. Some of the top places to invest in long-term rentals are Cleveland, Ohio and Jacksonville, Florida.

Regardless of what you choose, here are some advantages to both options as well as some potential setbacks:

Long-Term Rentals

Long-term rentals have been the traditional option for property investors for a variety of reasons, including:

• Longer lease length: Having a consistent deadline and a year-long lease will ensure you always have someone in your property paying rent. This means there is no seasonal variance or off-seasons that would make it difficult to rent your property.

• Less advertising: Short-term rentals have to be advertised constantly, usually every week to fill in for later dates. With a long-term rental property, you will only need to advertise when your tenant leaves. You can also require notice, which allows you ample time to find a new tenant.

• No utility payments: In a long-term rental, the tenants are usually responsible for taking care of their electricity and water and other utility payments. This isn’t the case with short-term rentals, which means if guests blast the AC, the charges fall on you.

• Renters will take care of basic maintenance: Long-term renters can generally keep the house clean, complete yard work and do minor repairs around the house. With short-term rentals, guests often treat it as a hotel, with no cleaning responsibilities or upkeep.

Short-Term Rentals

Short-term rentals are the go-to option for tourists at the moment. You can now find Airbnb and VRBO rentals in almost any location. Short-term rentals can provide more of a homey and in-depth cultural feel that a hotel usually doesn’t provide. Here are some of the advantages of opting for a short-term rental (but remember, location is going to be vital):

• Not tied to the same tenant: Even if you go through proper screening to find a tenant in the first place, you can get stuck with a renter who ends up not being a good fit for you and your property or doesn’t pay rent on time. This can be avoided with short-term rentals. Plus, you can also sell the property without having to worry about moving the tenant out.

• Vacation home: If you own a property in an ideal location, whether it’s a mountain lodge, beach condo or just a home away from home, you can block out availability for your own personal vacation. You can also let other friends and families use it if you’d like.

• Possibility of more income: Short-term rentals in destination areas are usually listed at higher prices with nightly rates. This can significantly increase the income you are collecting at a faster pace.

• Easier to keep up with repairs: As you will more consistently be at the property to inspect and get it ready for the next guests, you will be able to catch and fix things more often. Usually, long-term renters create more wear and tear on the furniture and appliances.

While both long-term and short-term have advantages, there are several factors that should also be considered. For example, a short-term rental would require more interaction from you to keep it clean, organized and to always communicate with guests. If you don’t live close to your property or don’t have the means to be that hands-on, you will need to hire a property management company or someone to do most of the work for you, which can be expensive. Another aspect to short-term rentals that can make them more difficult is that they need to be fully furnished, have kitchenware, linens, towels and, ultimately, have necessary amenities guests would need and want if they were staying at a hotel.

Furthermore, when it comes to long-term rentals, they will have a slower cash flow and you most likely won’t have the ability to charge more premium rates as you must stick to the lease agreement. As mentioned above, long-term renters may potentially create more wear and tear on your property, particularly in the kitchen, due to the longevity of their stay.

Whichever way you decide to go, make sure you’ve asked the right questions about your property in accordance with location, size and type of management for the optimal return on investment.

Source: https://www.forbes.com/sites/forbesrealestatecouncil/2019/07/01/what-you-need-to-know-about-long-term-vs-short-term-rentals/?sh=1ec0acfe3254

The Pros and Cons of Owning Long-Term vs. Short-Term Rentals

By JOHN BORUFF

4/15/2021

There are many things to consider when determining whether to list your property as a long-term or short-term rental. To optimize returns on your investment property, it’s important to understand the benefits and drawbacks to both options.

Location is a top factor. Short-term rentals are becoming a popular alternative to traditional hotels for many vacation-goers in popular touristy areas. If you have a property in the heart of San Diego or a coastal city like Carlsbad or Encinitas, then you might consider a short-term rental for the premium nightly rates and abundant tourists. On the other hand, a long-term rental provides more stability with consistent yearlong tenants.

Here is a guide to some of the pros and cons of short-term and long-term rentals.

BENEFITS OF SHORT TERM RENTALS

A short-term rental is a condo, home or apartment that is rented anywhere from one night to one month. On average, short-term rentals are occupied for a few days at a time. Below are some pros of investing in a short-term rental.

GREATER EARNING POTENTIAL

Normally, short-term rentals in destination areas charge higher prices than long-term rentals. Especially during holidays, big sporting events, concerts, and high-season, renters expect to pay premium rates. As the property manager, you can change your nightly rates depending on demand. This can increase the income you are making at a faster pace.

VACATION FLEXIBILITY

Since renters only stay at your property for a few days at a time, you have more flexibility to use your home for yourself. You can block off periods where you know you’ll be using it, or have a spur-of-the-moment trip if no one is currently renting the property.

MAINTENANCE AND REPAIR UPKEEP

If you live near the property and prepare the home for each new guest, then you’ll be able to catch and fix repairs quicker since you’ll be on-sight more often.

TAX DEDUCTIONS

If you plan to rent your place for 14 days or less per year, then you could qualify for the 14-day rule. It states a property owner will not have to pay taxes on their rental earnings if they only rent 14 days or less a year. You are also allowed to deduct expenses related to the rental like insurance, maintenance, and utilities.

POSSIBLE CONS OF SHORT TERM RENTALS

STRICTER REGULATIONS

Some areas have strict rules for short-term rentals. Escondido and other cities in San Diego County require a transient occupancy tax for short-term rentals, occupancy limits, and other requirements.

MAINTENANCE COSTS

Since short-term rentals are considered more like hotels, guests expect a fully furnished home. Because the turnover rate on short term rentals is much higher, you will find yourself with more cleaning fees as well as re-stocking towels, sheets, paper goods and more. This can make a dent in your profits.

FLUCTUATING DEMAND

Most renters will only stay in the property for a few days, so there will likely be periods where no one is renting the property, especially during out-of-season.

LONG TERM RENTAL BENEFITS

A long-term rental is a condo, home or apartment that is rented out for longer than a month. It’s common for long-term rental owners to have tenants sign a yearlong lease. Below are some benefits of having a long-term rental property.

MORE CONSISTENT REVENUE

Less turnover means a consistent income for the duration of the lease. There is also no seasonal variance or off-seasons with long-term rentals because a typical lease is one year.

YOU CAN HIRE A PROPERTY MANAGER

Hiring a professional team of seasoned property managers will save you time, money and headaches in the long run. Property management companies typically handle everything from tenant screening and placement, to being compliant with state and federal laws, and managing all things maintenance and repair. Leaving the property owner with more time, money and peace of mind.

LESS ADVERTISING COSTS

Unlike short-term leases that need constant advertisement because of their high turnover, long-term leases only need advertisement when the tenant is moving out.

NO UTILITY EXPENSES

Long term renters are usually responsible for taking care of their utility expenses like water and electricity. Renters may also be responsible for some lawn maintenance.

LESS CLEANING AND MAINTENANCE EXPENSES

A lower turnover rate means you will typically spend less time cleaning and prepping your property for new guests. Less time inspecting, showing and servicing things that the tenant would be responsible for.

CONS OF LONG TERM RENTALS

RISK OF DAMAGE

More time spent in a property usually means more risk of causing damage. Tenants could create more wear on appliances, flooring and walls – especially if they have pets or young children. Make sure to include a damage clause within your renters contract and collect a deposit.

LESS FLEXIBILITY

Without proper tenant screening, you could find yourself in contract with a poor tenant. Unless certain conditions qualify for the eviction process, a DIY landlord may be dealing with a headache of issues. It also means no spur-of-the-moment vacations, since your property will most likely be rented out the majority of the year.

We know deciding whether to rent short-term or long-term isn’t simple. Our expert team is here to help you make the best personal and financial decision for your rental property.

If you’re interested in finding out how much you can rent your space for – fill out our FREE Rental Analysis and receive an in-depth market report on your property.

Source: https://www.palomarpropertyservices.com/blog/the-pros-and-cons-of-owning-long-term-vs-short-term-rentals–

Flat-Fee MLS Listing Service in Northern VA

**Neighborhood Specialist (McLean, Falls Church, Vienna)** |
**Helping For Sale by Owner (FSBO) & For Rent by Owner (FRBO)**

DIY Landlord – Renting out Properties Safer and Quicker!

By David Chen

4/15/2021

Q. We purchased our first home some years ago, and are about to move to another home. We are considering to keep our first home as an income property. We heard of the free ads on CRAIGSLIST and zillow.com, but some landlord friends told us it could be a challenge to find qualified tenants through CRAIGSLIST and zillow.com. Is there any way to rent our property out quicker and safer with minimum cost? We are the kind of persons who would like to try things ourselves, and have some spare time.

A. You may have already done the initial research and have figured out the range of monthly rent of your property.

If the monthly rent is low such as $1600.00 or below, you may want to do it through CRAIGSLIST, https://postlets.com/, zillow.com, or similar web sites. The renters interested in the low-priced rentals may not go to the Realtors community for assistance.

If the monthly rent is $1600.00 or above, you may want to consider listing your rental on brightmls.com for the Realtors community to market it for you.

Bright MLS is made up of nine forward thinking MLSs (43 Associations) in the Mid-Atlantic region who put aside their differences and came together with a shared vision to help solve MLS market overlap and empower everyone to get more out of the MLS. Bright will serve parts of 6 states plus Washington, D.C. encompassing 85,000 real estate professionals who serve over 20 million consumers and facilitate approximately 250,000 transactions a year that are valued at more than $70 billion.

Dozens of public real estate websites (such as: zillow.com, redfin.com, brightmlshomes.com, etc.) pull data from brightmls.com through syndication. In a few hours, your listing will show up on dozens of websites and will get the maximum exposure. It is a lot quicker and safer finding qualified tenants than doing it through CRAIGSLIST and zillow.com. You may talk with a Realtor for assistance. Please be aware some Realtors take rental jobs, some don’t.

Over the years I have helped some landlords in the community renting their properties out with very low cost. A popular arrangement is to help the landlords ‘DIY’, which has been working well for those experienced landlords.

The good side of ‘DIY’ is that the landlords can ‘screen’ the potential tenants from the very beginning, have 100% control of the whole process, and enjoy the feeling of “on top of things”.

If you prefer minimum service, I can help you ‘DIY’:

1. I provide CMA, list your rental on brightmls.com, put a realtor’s lockbox at the front door if needed, provide the access log (if needed), support you through the whole process.

I charge a flat fee for the minimum service.

2. If you would like me to prepare the lease or review the lease, there is another reasonable flat fee. This service is optional.

3. You answer phone calls, work with the tenant (if the tenant doesn’t have an agent) or the tenant’s agent, run credit check, verify employment, check references, etc.. You pay the tenant’s agent (if there is one) directly on the move-in date – usually 25% of first-month rent.

If you need full-service, the commission is first-month rent – which includes the commission to be paid to the tenant’s agent.

If you need any customized service (between minimum service and full-service), we can work out an agreement.

Some information:

CMA stands for Comparable (some called Competitive) Market Analysis, that will help you determine the market value of your property for sale or for rent.

I use Sentry-key lockbox. Any Realtor with membership of NVAR (Northern Virginia Association of Realtors) or any other VA Realtors association can access and show the property.

The access log tells when the agents enter the property and their contact info. which can help you follow up with the agents.

If you like the DIY experience, I would recommend you to use the minimum service.

Please feel free to reach me if you need any assistance.
—
David Chen
Realtor (Licensed in VA) | Neighborhood Specialist (McLean, Falls Church, Vienna)
Libra Realty, LLC
dchenj@gmail.com
703-395-5406

WeChat ID: dchenj2015

Last update: 4/15/2021

Websites that will show your flat fee mls listings

4/15/2021

Almost all real estate websites that offer the ability to search brokerage listings use a data feed from the MLS called Internet Data Exchange (IDX) to pull in listing data. Depending on the number of sites tapping into your MLS, your listing could appear on hundreds of websites. We do not control the content of any of the websites listed below. updated periodically & subject to change at any time Here are some examples of national websites by area that pull listings from the MLS:

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