If you’re thinking about investing in property, first you need to consider what you’ll use it for: long-term leasing or as a short-term holiday home?
Here are the main differences to help you decide which is right for you.
- Return on investment
Long term leasing offers a steady weekly income for the duration of the tenancy. Holiday accommodation will fetch far more per night but, in most locations, is unlikely to book up every week of the year. So which is more important to you: a reliable income that may be lower, or lucrative returns that will fluctuate?
- Repairs and maintenance
With different people coming and going at holiday homes, superficial damage is more likely to occur and the costs of upkeep and maintenance are likely to be higher. Long-term tenants on the other hand will be familiar with the property and aware of how to look after it. With both types of leasing you can hold a bond to protect yourself against careless damage, but this is a much higher sum for long-termers and so they are often more concerned about preventing damage.
- Personal use
With long-term tenants in place, you’ll have no use of the property until the agreement ends and they move out. As a holiday home, you’ll be able to make personal use of your investment whenever you like. Are you investing somewhere you enjoy visiting and in a property that will suit your holidaying needs? Perhaps short term leasing would be more appropriate for you.
Both types of leasing require a hands-on approach, great relationships with tenants and a willingness to help at all hours. If you live far away or can’t offer your complete attention, you may consider employing a property management service to take everything off your hands. That way you can sit back and relax, knowing your property and tenants or guests are being looked after 24/7.
Whatever you decide for your investment, we have dedicated and professional property managers who make both long-term and short-term holiday leasing stress-free, enjoyable and rewarding.
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