How profitable to rent a house: by the day or long term
Are you a homeowner starting to rent it out? Wondering how to get the maximum profit? Our article will help you evaluate all the risks, pros and cons of each of the methods of delivery of real estate.
Short-term or long-term rentals are practiced on the rental market. Both options are equally popular, so we will look at each of them in detail.
Long term rentals
It is suitable for people who do not like unnecessary fuss, problems with law enforcement agencies, but prefer to “give up and forget”. This option is the best solution for those who leave the city for a long time: the living space will remain under supervision.
The apartment for a long time is most often rented by students, young families, migrants from remote places or another region.
The advantages of long-term rental:
- Residents responsibly belong to the property, in time they report malfunctions or breakdowns (for example, plumbers).
- The bills for water, electricity and gas (when installing the meter) are paid by tenants.
- Residential space brings a steady income, which is easily calculated in advance.
- The rent depends on the average price of the area. At the same time, the condition of the living space and the amount of furniture does not play a decisive role.
- Raise payment without prior agreement with the tenants will not work. According to the legislation, in the case of a long-term lease, the owner has the right to increase the fee no more than once a year.
- There is a risk of fraud on the part of lodgers: they can retake housing for rent, invite relatives.
Tip! In order to avoid ambiguity and misunderstanding, when concluding a transaction it is recommended to draw up a lease agreement. It specifies the term of employment, amount of payment, number of people living, responsibility of the parties for damage to property.
The owner sets the rental price independently: on the basis of the state, conditions and degree of comfort.
Tenants of such housing are travelers, tourists. A separate category - couples in search of solitude.
The advantage of a short-term lease is one: renting out an apartment for rent, for a month you get several times more net profit than with a long-term lease.
- We have to constantly look for new guests.
- Housing is required to furnish furniture, to equip with kitchen and bedding.
- To clean, change bedding, repair furniture, taps and stuff you have to yourself.
- Redecorating has to be done much more often.
- There may be problems with neighbors due to noise.
Tip! Record the passport data of tenants, mobile phone number for communication. Take the money for the entire stipulated period in advance - the advance payment acts as a kind of insurance for possible damage.
Each owner chooses how it is more profitable for him to hand over real estate. Someone better once a month to meet with the tenants to pick up the money. And someone prefers to increase income through active rent for rent. By contacting an agency to find customers, you will relieve some of your worries. Another option is to enter into an agreement with the real estate trust management agency. In this case, you will regularly receive the agreed amount, and the agency will assume all the trouble of renting and maintaining the apartment in good condition.
Any of the above options is beneficial, as it brings the owner a steady additional income!