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.
Property Location
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.
Financial Considerations
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.
Management Considerations
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.