The median rent in California ranges from as low as $1,108 and as high as $4,508. If you have a property in California that you want to rent out, you're faced with a dilemma.
Do you offer short or long term rental property? They both have their advantages, and the one you choose will depend on the type of income you're looking for.
Keep reading to learn about both short and long term rentals and which will offer you a better return.
Advantages of a Long Term Rental
The most significant advantage to a long term rental is the financial security od a consistent cash flow. You know that once you sign the lease, your property will be occupied, and you should receive a check every month for the rent.
You can also arrange to have the renter pay the monthly utility bills. This will lower your overhead to maintain the property.
Long term renters also bring their own furniture. You won't have to worry about furnishing the place or updating the decor to fit with trends.
Finally, you can charge a security deposit and have a lease that will protect you from damage. This will make it easier to pursue damages than it would if a short term renter damages your property.
Advantages of a Short Term Rental
With short term rentals, you have the potential to earn a higher income. This is because you can charge more per night than you can with a long term rental.
Your property will experience less wear and tear because there won't be someone in it occupying the space every day. This gives you more opportunity to go in and maintain the space.
As long as you don't have vacationers throwing wild parties, your property will stay looking like new for longer.
When you don't have a renter, you can use the property yourself. So if your rental property is in a vacation area, such as a beach or ski house, then you can use it with your family.
Shorter-term rentals also allow you to adjust your pricing more often. Change your pricing to adjust for demand during peak seasons. This way, you can earn more when your rental is in greater demand.
Finally, it's much easier to find someone to rent for a few days rather than an entire year.
Which Has the Better Return
The property with a better return has the type of payments you're looking for. Short term rentals will offer increased earnings during the high season but may have spotty returns during the offseason. They will also require more work on your part for the management of the property.
A long term rental may have lower monthly returns, but they're consistent throughout the year. They also require less work on the management side of things once you have a tenant move in.
Start Renting Your Property Today
Whether you want to rent your property out for the short or long term, our team can help. Our exclusive eight-step process will systematically produce the quality tenants that you want.
We can help you manage your short or long term rental. Contact our team today, and let us help you rent your property.