Have you been watching London property for sale or calling estate agents in East London? Investing in real estate has been a widely held due to the steady economic growth that investors have achieved over the years. These days, there are more ways to make a profit when investing money in a property: you can opt for short-term rental in London or consider long-term rentals. ..............................................
But what exactly are short or long-term rentals? Here is what our sales agent shares
We’ve seen that the definition varies depending on who you ask. Still, to help you better understand it, we’ll define short-term rentals in London as properties typically rented for a few weeks, and long-term rentals are typically rented for a few months.
Whether you invest in short-term or long-term rentals, the goal remains to get the best possible return on your investment. Both options have their advantages, and here is a summary by estate agents in East London to help you better understand which solution would be more suitable for you.
Advantages of long-term rentals
- Steady Income: Long-term rentals are for one year, ensuring a steady rental income throughout the year. When tenants live on your property, the seasonality factor is taken out of the equation.
- No Frequent Ads Required: As a homeowner, you don’t have to spend a lot of time managing your property or advertising your property as often as necessary for short-term rentals.
- No utility bills: In a long-term rental, tenants are responsible for paying electricity, water, gas, or other utility bills. However, in a short-term rental, you are responsible for these bills.
- Basic maintenance: Your tenants take care of the maintenance of your property and usually keep the house clean. You may have to take care of some basic repairs, but most responsibilities fall on the tenants who occupy your property.
Advantages of short-term rentals:
- Higher Income Potential
The biggest advantage of a short-term rental is that it can help you earn more money, especially if the property is located in a popular destination. Property prices can vary based on demand to maximize your total income.
- You won’t get stuck with bad tenants
Sometimes, regardless of how well you screen your tenants, for various reasons, they may end up not being a good fit for you and your property. With a short-term rental, you can completely avoid this situation.
- Improved maintenance
Short-term rentals require you to clean your property between each change of guests, which could help you catch any damage early. East London estate agents suggest saving money by fixing a problem early to help you keep your London property for sale in good shape.
- Second home
You won’t just be making money from your rental property. You’ll also always have a place to go when you feel like relaxing and rejuvenating. You will also be able to host your friends and family from time to time, spend some quality time with them, and have fun.
- Greater earning potential
Short-term rentals can make more money, plain and simple, especially in a popular vacation area. A property that could fetch a certain monthly amount from a long-term tenant can often earn more than double that amount as a vacation rental.
While administration fees are generally higher with short-term rentals, the increased earning potential can offset that cost.
- Ability to adjust prices
In addition to the increased earning potential, short-term rental in London owners has the added luxury of being able to adjust prices as they see fit. If an inventory is filling up quickly, a landlord can raise the rent to maximize profits.
Managing a vacation rental is no longer the case. Platforms like Airbnb allow owners to list their properties, and technological advances like smart locks have made it easier to manage vacation rentals, even if you don’t live nearby.
So while managing a vacation rental is still more complicated than managing a long-term rental, it’s much easier than it used to be.
In summary: If you are wondering about the best option, according to our sales agent there is no perfect answer to this question. It depends on the comfort you are looking for, the risks you can take, the time you can spend, and the benefits you expect. Check out London property for sale here.