With summer arriving many investment property owners are weighing up the option of whether to rent their house to short term summer holiday makers or to long-term tenants.
While there are often quick gains to be made from short term holiday rentals there are also issues associated with this type of renting. For example the following are just some of the hidden problems with short term holiday rentals:
- Cancellations are quite common, if short notice this can leave you with unoccupied days/weeks and out of pocket.
- Damage to property. Short term holiday makers are less likely to care for your house and property. Whereas longer-term tenants have to sign tenancy agreements which legally protect you as a landlord.
- Lack of control on numbers. In the last few years there have been many reported cases of occupancy numbers in a holiday rental being greater than what was allowed/booked. Unfortunately this can go unchecked, and can result in greater wear and tear on your property.
- Many online booking sites have ratings and reviews, which can sometimes be difficult for owners if a holiday guest is not happy about their stay.
On the other hand a long term rental requires more commitment from a tenant and stability for a property owner. Advantages include:
- Landlords know exactly how much rental income they will be receiving every week.
- Tenants have to sign tenancy agreements which helps protect landlords rights.
- A notice period is set so landlords are given plenty of time to organise new tenants should existing tenants wish to leave.
- Long term tenants are less likely to damage property, and if they do landlords have bonds and/or landlord insurance as cover.
Also, given the current demand for rentals in the Tauranga region, property owners are able to rent their house for a premium to long term tenants. These tenants are desperate for houses in the areas of Papamoa and Mt Maunganui, and anywhere near good schools.
In addition to the above advantages, landlords can also use the services of a property manager when they choose long term tenants for their property. Our property management service includes a free market appraisal, REAL Landlord Insurance, set fees, up to the minute reporting and more.
So if you are looking at renting out your Tauranga investment property call Connect Realty today. We care about your investment and want to help you every step of the way.