If you’re thinking about a short term vs. long term lease, you need to understand the risks and benefits of both. Typically, short term rentals are for things like Airbnb or Vacation Rental by Owner. They are basically a few weeks to a few months in length, versus a long term rental which is anything from 12 months to two years or even longer.
Property Management Burlingame: Short Term Rentals
Short term rentals are usually fully furnished. The owner is often someone who is out of the country for a short period of time, or they’re not sure what they want to do with the property. In many cases, they haven’t decided if they want to rent it out or sell it.
Short term rentals can work, but you have to think about your goals with the property. In short term rentals we tend to see more wear and tear on the property, which could be problematic, especially if you’re leaving the furnishings in the property. You do need to keep it furnished because most people looking for short term rentals don’t want to spend the money or time to bring in their own items for three weeks or a month or two.
If you’re the owner and you have nice furnishings, the last thing you want to see is that someone is not taking care of your property. A lot of times, it’s not worth the few thousand dollars of income to lose items that are worth more than that.
Property Management Burlingame: Long Term Rentals
The focus of Five Star is really on long term rentals of 12 months or longer. Those type of rentals are unfurnished, and they are properties where the owner knows this is an investment property that they plan to have for at least a couple of years. They plan to maximize their rental income and the value of the property. The best way to obtain that goal is with long term rentals and tenants. We make sure rent increases are built into that plan. If you’re a serious investor, long term rentals are the best way to go.
For further questions or a discussion of additional pros and cons, please contact us at Five Star Property Management. We’d love to talk more about Burlingame property management.