What are the differences?
If you have an unused property you will wonder how you can benefit from it. There are two ways this can be accomplished and they are short term or long term. But there are many differences in income streams and legal responsibilities, so our advice is to do some serious research before deciding on the Lease Model.
The difference is not that one model is better than the other but what best suits the needs and income you want to have in the current situation. Below are some things to know about the LoveBnB experience.
Short term lease
A short-term lease usually consists of a lease period of less than 6 months. However, the range of nights a visitor chooses to stay at the property varies from one night to several weeks. Thanks to the revolution of Airbnb and various other channels the short-term rental market has opened up and this gives the opportunity for high demand coupled with high prices.
Statistically, short-term leasing can yield at least 30% higher profits than long-term leasing. Managing a short-term property takes a lot of time and effort, so you may need to hire a real estate management company like LoveBnB or spend a lot of your personal time to ensure the successful operation of your property.
Long term lease
When you make a long-term lease you can opt for 6 or 12 month contracts. As a traditional landlord when you have tenants on your property, you have a steady income every month, so you don’t have to calculate how much you’ll earn each year. Renting your home in this way is also beneficial because the tenants will cover their energy bills and the demand for rent is always high.
There is generally no rule that you have to choose one or the other. In fact at LoveBnB quite a few bucks, we suggest a flexible rental model which is a combination of short and long term rentals to maximize your revenue.
The LoveBnB team can help and answer any of your questions about managing your home or villa. Contact us and a representative of our company will arrange a personal appointment for your briefing.