Vacation rentals are one of the most popular and hottest properties on the real estate market at present. As a property owner it is a tough decision to either rent out your property as a vacation rental or as a long term rental. A vacation rental has many rich prospects, however the choice needs to be informed and insightful. There are certain pros and cons which come with both vacation rentals and long term rentals and you need to be particularly aware about the implications of both before making a decision as to how you rent out your property. Being smart while making the choice will help you make the most of your property.
Why Choose Vacation Rentals?
- Income – Typically, vacation rentals are priced higher and work with nightly or weekly rates. This enables you to earn significantly more while renting out your property. The increase in revenue can even make up for those times of the year when rentals are slow. Alternatively, you can also use the corporate market to your advantage. Corporations are frequently on the lookout for short term rentals and your property might be an attractive option for them, bringing in more profit for you.
- Tax – Making your property available for vacation rentals also entitles you to a number of attractive tax benefits. There are a number of incurred costs that you can deduct from your taxable income. You can also make tax deductible purchases at year-end to save on taxes.
- Community –Vacation rentals are focused on the community around them and its characteristics, and attractions. This leads to community rewards and the overall enhancement of the value of local property in that community.
Why Choose Long-term Rentals?
- Costs – Long-term rentals have far less hidden costs than vacation rentals. With a long term rental you will be spending far less in terms of maintenance, upkeep of property, utilities and payment of annual fees. There will also be significant savings in terms of promotional and advertisement costs.
- Competition – The vacation rental market is hugely competitive with potential clients having a lot of options to choose from. Making an impression is, therefore, much easier in the long-term rental market.
- Restrictions – In many areas, people who let out their property for vacation rentals face certain special restrictions. There are stringent laws which are being formed about their activities and you can avoid these with long-term rentals.