What is the difference between short and long-term rentals?
If you are just about to decide which type of rental is suitable for your property, then our article will help you.
However, before you decide which type of rental is the best for you, you should be aware of the respective legal obligations. Since we do not offer legal advice, we recommend that you discuss your project with your advisor.
In general, it can be said that both types of rental can generate a very profitable income stream, as long as important criteria are observed and the administrative work load is not underestimated.
In the following we will discuss three possible rental models.
In the case of short-term rental, we generally speak of a rental period of less than six months. Most people associate the term with a period ranging from one night to a few weeks. Thanks to the rapidly growing market for home-sharing booking platforms, it has become clear that short-term rental is a lucrative way to generate income.
One of the most popular and user-friendly booking platforms is Airbnb. Due to the international reputation of this platform, it is possible to achieve high occupancy rates and returns for your BnB.
Thereby it is to be considered that the rental effort is considerably higher than with a long-term rental.
We can facilitate the administration of your BnB through our marketing and management services. We guarantee you a successful management of your professional accommodation.
In the case of long-term rentals, the choice lies between a six- or twelve-month contract. With this rental model, the advantage is obvious: your monthly income is predictable, the utilities can be partially allocated to the tenant and the administrative costs are only a fraction of those for short-term rentals.
Flexible rental models
The last model deals with the combination of short, medium and long-term rental. Through this flexibility you can achieve an optimal occupancy rate and return on your BnB. If, for example, your city is visited by many tourists in the summer (potential guests), then the best way to proceed is with short-term rentals. Thanks to the many bookings you can maximize your occupancy rate and increase your profitability. In the months when the tourist load decreases, you can then focus on another target group to rent the rest of the year, on a medium and long-term basis.
》As you can see, there isn’t really one and only rental model. No matter which model you choose, we at rockyourbnb will support you in your plans and we will help you to maximize your return on investment and occupancy while reducing your administrative costs.《(Service Link)