A lot of landlords ask us if it makes more sense to put their property on the market as a short term rental or a long term rental. This is a vacation area, so it makes sense to think about your options. There are a couple of things to consider when you’re making this decision.
Homes that are on or near the water make good short term rentals. If your property is on Lake Michigan, maybe it’s a good idea to consider renting that home out to short term vacationers. If your property is more inland, a long term rental might make more sense for you. When your property is even just a couple of blocks from the beach, you’re less likely to attract short term renters and you may be better renting it out to long term residents.
Make sure you understand the numbers associated with these different types of rentals. Short term rentals are more seasonal, and so you’ll have 12 to 14 weeks in summer that are really good, with a lot of high rents coming in. But in the winter or the off season, it will be harder to rent the property.
Short term rentals can be more management intensive than long term rentals. Whether you’re managing on your own or hiring a property management company, it’s going to be more expensive to maintain and care for that property. You’ll have different people moving in and out every week, so it’s more like taking care of a hotel. With a long term rental, you have one tenant living there for a year or longer, so that’s less money per month in management costs.
Basically, short term rentals will give you higher income for a few months while long term rentals will give you lower but more consistent rents. If you have any questions or you’d like to discuss short term and long term rentals further, please contact us at Real Property Management Southwest Michigan. We’d be happy to help with whatever you need.