Should you be renting out your residential unit long-term or short-term? Here is what you need to know.

One of the questions many of our investor often ask is whether to rent out their residential property short-term or long-term. We believe both options should be evaluated in terms of profitability, regulations, safety and wear and tear. There are pros and cons to both options and we would like to highlight them to help you make a more informed decision.

Long-term rental allow the landlord a hands off approach, usually the tenant would not have the landlord conduct minor repairs unless there is a major maintenance issue that is above the stated expense on the rental contract. This is a great advantage as the expenses does add up and could increase the overhead of owning a property.

Another advantage long-term rental have over short term rental is, It allows the landlord save on property management fees. Managing a unit or apartment that requires monthly move require a significant amount of cost to manage to make it desirable to the next occupant.

Long-term rentals reduces the wear and tear of the apartment as not a lot of people are moving in and out of the apartment which is another advantage over short term rentals, as the wear and tear would need to be addressed frequently to keep the apartment in a marketable condition.

While short term rentals offers a lot of flexibility and can provide additional income based on the time of the year, additional licences are required for owners that offer short term rentals and sometimes it is prohibited in certain buildings due to security measures. Its easier to ensure safety of residents when the rental is long-term as more information is held about the tenant by the building management and the government unlike short-term rentals. The decision to rent out a property short-term depend on the flexibility of the owner and considerations of the necessary pros and cons

If you would like to know more or have further questions on how you can make the most of your Real Estate Investment, please don’t hesitate to contact us at info@blytheandcompany.com.