As a landlord, you might think tenants are tenants – whatever the terms of the letting agreement. However, it’s worth looking at the differences between short- and long-term letting, in case you find that one or other suits you better.
What to think about before committing to short-term leases
There are a number of benefits to short-term letting such as:
- You get a higher rental return in a shorter period of time,
- There is less wear and tear due to regular furniture removals,
- Less likelihood of unpaid rent or arrears,
- Your property is available to you more frequently.
Although there will be more agreements to sign and property inspections to host, your property manager will likely take care of all of this for you.
However, long-term letting does provide an opportunity to secure rental income for a period of several months (or longer!) and the ability to plan your cash-flow over that period of time. With short-term agreements you have to find new tenants more frequently, which can take time. It’s important to consider whether your financial situation can sustain the uncertainty that comes with short-term agreements.
As with any tenancy in a strata-titled building, you must make your owners corporation aware of your plans and ensure it fits within any property by-laws before making any definitive arrangements.