As the owner of rental property – and particularly as a long-distance landlord – locking in your tenants for one year, two years, or longer can provide you with a number of advantages…starting with the fact that you won’t have to spend more time marketing for and screening potential residents.
But having short-term renters can in fact provide you with some nice benefits, too. This is particularly the case if you own rental property in Naples, Florida, or the surrounding South Florida locale.
One of the primary advantages for you is the ability to charge a higher amount of rent. Typically, tenants are charged a lower amount of monthly rent for longer lease periods, and vice versa. So, renting your property for less than twelve month periods can allow you to bring in a higher amount of monthly cash flow.
Shorter-term rentals can also equate to you having more flexibility in terms of what you can do with the property going forward. As an example, should you decide to sell your property and use the equity for other financial endeavors, having a tenant locked in to a year (or longer) lease can hold up the process, and essentially hinder your opportunity cost. Alternatively, knowing that your investment will be available sooner rather than later gives you options.
While renting out your property for shorter periods of time means that you will have to advertise it more frequently, as well as screen tenants and draw up new leases, the time that is spent doing this does not necessarily have to be yours.
Rather, by working with a professional property management company, all of these tasks can be seamlessly completed while you concentrate on other things. For more information on how a property management team could work for you, Contact Benoit Management today. With more than 650 properties in South Florida under our care, our reputation speaks for itself, while also benefiting you.