Property is undeniably one of the best investment choices a person can make for enabling long-term benefits and a better-funded pension pot. However, it is worth considering how property can not only generate cash in the long term but also provide a nice income in the short term. In this blog, I am going to explore the pros and cons of short-term rentals as opposed to having a long-term tenant.

What is a long or short let?

Before we get into it, I first want to establish the difference between these two types of let. A long-term let will usually be anywhere from a year upwards and is almost always more than six months. This type of let is considered a residential rental for a home and the tenant will have entered a contract with the owner. 

A short-term rental let, on the other hand, is a visitor’s accommodation and is often used during holidays or brief visits away from home. These tend to be anywhere from one night to a few weeks, but never more than 6 months. Short-term let’s are also often linked to holiday let companies (such as Pass the Keys) who help host Airbnb and work in holiday cottage management.

So, why is short-term let better than long-term?

Money!!

First things first, money. Since short-term let's are quite often rented as holiday accommodation, people are willing to pay significantly more to stay there, ultimately generating greater revenue. The rent prices for these short-term lets may vary across the year, increasing in the summer months and school holidays, but always sitting at a point higher than that of a long-term tenancy (on average 30% more). 

When taking a trip away, people like to enjoy the full benefits of the area and are prepared to pay for the full experience – this includes staying in homes close to points of interest, the beach, or that offer the true character of the location. Based on this, you may be wondering why anyone would choose long term over short term let? In response to this, I must note that long-term let can be a safe and easy option as it provides a more stable and reliable income, without the stress of finding people to fill your home each week. 

However, though a short-term let may not be booked up for every week of the year, the higher rent prices in key holiday weeks more than makes up for it. In areas such as Ceredigion however, lack of interest is rarely a problem that homeowners have to consider since the recent explosion of the ‘staycation’, which are most popular in seaside areas, and the growing popularity of advertising sites such as Airbnb listings and Vrbo. It is so easy to find holiday accommodation and for homeowners to reach tenants. 

Maintenance and tenants 

Another great benefit of short-term let is that the property is maintained to a much better standard. It is true that tenants in a long term let are more likely to put effort into taking care of the property as it is their permanent residence, but short term lets receive professional cleaning services and maintenance far more regularly. These properties are cleaned after every booking (some being only a few days long) and so rarely become dirty or damaged and don’t suffer the same wear and tear that a permanent home would. 

These regular visits and checks also mean that any damage or problems are spotted very early on and are fixed before they are allowed to get worse. 

This means that, in the long term, the property will likely cost the owner less money in maintenance and repairs. It is also no secret that landlords often must deal with problematic tenants which can ultimately lead to cancelling of contracts and unnecessary expenses (and stress). 

Again, short-term letting removes this threat as any problem tenant will only be staying for a very short time. It is flexible and allows for the owner to welcome and remove tenants as and when they please. 

Pass the Keys

Despite all the obvious benefits, the primary factor that turns people off the idea of short-term let is the time and effort that goes into cleaning and maintaining the properties so regularly. Though it brings in a significantly increased income, it can become close to a full-time job in terms of upkeep, customer interaction, and general organization. 

This is where companies such as Pass the Keys come into it. We are a holiday let management company that provides everything for the homeowner, from listing the property on websites, providing all cleaning and maintenance services, offering 24-hour guest support, and sorting out insurance. You get all the benefits of a short-term let without having to sacrifice any extra time or energy. 

A holiday let agency leaves you with very little to worry about and a lot of money in your bank account! Essentially, we’re flexible and take away the hassle that is often linked to short-term let. With the help of a holiday let company, you’d be crazy not to consider short-term let for your property.

To find out more, please visit https://passthekeys.co.uk/north-ceredigion or call for a friendly chat on 016545 57068 today.