Let up on the length of your leases! 31.8% of Americans had month-to-month leases without specific end times. Some people stayed in their rentals for three months or less.
This may sound invigorating or confusing depending on the type of landlord you are. But before you start looking for new tenants, you should decide what types of tenants you want. You can break things down with the help of a few questions.
How much money can you make off of long-term and short-term tenants? How should you advertise your properties? When do you need to maintain and inspect your properties?
Get the facts and you can start an effective landlord strategy in no time. Here is your quick guide.
You can make money off of both long-term and short-term tenants. Your income for long-term tenants is more stable because you can charge steady rates for them. But you can adjust your rates for short-term renters, charging higher amounts for a holiday rental or peak season.
In addition to fees, you can charge a high security deposit for short-term renters. If someone damages your property, you can use their deposit to fix it. It can be harder to manage long-term security deposits in a bank, especially if your tenant moves far away from you.
Make sure you are following Florida laws on security deposits. You must return the security deposit if you did not spend it. Communicate with your tenant about how you will do so.
In order to make a short-term rental viable, you have to advertise your properties constantly. You must keep posting on social media, and you need to update your property descriptions.
With long-term rentals, you can advertise less often. You can also require your long-term tenants to let you know when they are moving out. However, advertising less often can make it hard for you to build a name for yourself as a landlord and real estate professional.
The most obvious problem with short-term tenants is turnover. You will have to perform many administrative tasks like handling paperwork on a regular basis. Some people with many short-term tenants need to hire a property manager to arrange everything.
There is far less turnover involved with long-term tenants. But the process of screening tenants and writing long-term lease agreements takes longer. It may take you weeks to find a pool of tenants, then longer to narrow the pool down.
Most long-term tenants will keep their property clean. They may volunteer to perform yard work or make minor repairs in common areas.
Most short-term tenants treat their properties like hotel rooms and don't bother to clean them. However, you may be able to make repairs more often because you are constantly inspecting the property.
Comparing Long-Term Tenants to Short-Term Tenants
Long-term tenants and short-term tenants have their strengths and weaknesses. Long-term renters are more reliable, and they can keep your income steady. You have to advertise and maintain your property less, though you have less oversight over your property and brand.
You may be able to charge more for short-term renters. Though there is more turnover, you can keep track of your property better. You can also use more money for security deposits and maintenance.
If you still don't know who to market to, talk to experienced property professionals. Allegiant Management Group serves the Kissimmee area. Contact us today.