How to Make Money Renting Out Your Vacation Home Or Villa
Do you need a long term rental? There are many great reasons for this, but before we get into them, it is good to know exactly what you should expect. A long term rental can be great for you if you know how to handle it properly. Many people go for a long term rental simply because they are used to the routine and are comfortable with it. But for those of you who are new to renting, long term rentals can be tricky and may not be the best option for you.
Your long term rental will depend on your location and what the local market is doing. The rental rates will always be higher in an area that is less popular, so it will help if you plan on moving around a lot. The demand of a long term renter will be completely different than a short term renter. Long term renters are more likely to be looking at simple, basic aspects of your rental property, like appliances, upgrades, lighting, and surrounding neighborhood.
Long term tenants are also looking for a rental that provides some security. This may mean an owner who doesn’t mind doing a little more work or it could mean a rental property with some basic security measures. If you plan on going on vacation in the future, long term tenants will want to know that your vacation home or rental property will be safe and secure. Basic security features such as a gated entry and alarm systems are very common for long term rentals. Security is always an important consideration for any rental property. Learn more information about phuket long term rental.
One of the most important considerations for long term rentals is the monthly rent. Your long term tenants are looking for a steady, reasonable amount of rental income. This is usually equal to twenty percent of the gross monthly income of the property. In order to calculate this, you must add fifteen days to the gross rental amount for each calendar month. Calculating this percentage is not very difficult. All you have to do is subtract fourteen days from your monthly rent and the result is the percentage that your prospective tenants will pay for your rental income.
On the flip side, short term rentals are looking for a quick way to free up some cash. With short term rentals, the goal is to get out of the property as quickly as possible. Tenants often change rental properties in a relatively short period of time. In many cases, the same tenant will move into a different apartment within a short period of time. As such, short term rentals are looking for a rental property that they can quickly occupy and move out of as soon as possible.
Both types of tenants have different expectations of their rental income. Long term renters expect to make more money from a vacation property than short term rentals. However, this may not always be the case. As such, if you are able to offer vacation rentals, you should consider doing so since it will increase your overall income.