What is a Short-Term Rental?

A short-term rental (also known as a holiday rental) is a short-term rental of a furnished ancillary property. Depending on the owner, rental location, and many other factors, these properties are rented on a weekly, nightly, or monthly basis. Many short-term rental unit owners  rent out their property  for most of the year when they are not using it themselves. Especially with the advent of sharing economy websites such as Airbnb, Vrbo, Booking.com and Tripadvisor, they have become a very popular alternative to hotels over the last 10-15 years.

Advantages of Short-Term Rentals

A short-term rental (also known as a holiday rental) is a short-term rental of a furnished ancillary property. Depending on the owner, rental location, and many other factors, these properties are rented on a weekly, nightly, or monthly basis. Many short-term rental unit owners rent out their property for most of the year when they are not using it themselves. Especially with the advent of sharing economy websites such as Airbnb, Vrbo, Booking.com and Tripadvisor, they have become a very popular alternative to hotels over the last 10-15 years.

Short term rentals have many advantages to consider. Choosing between short-term and annual rentals can be  a little difficult or confusing, especially for vacation home owners. Yes,  annual tenants are committed, there is a clause in the contract if they move out early, providing security and a steady income for 1-2 years. However, short-term rentals have many advantages.

1 : Higher rental income potential (up to 30% more than  annual rentals)

Not only can you  set variable rates depending on the high and low seasons in your area, but you can also set  minimum stays during the most popular times of the year to maximize surplus. Many landlords are unaware of this, but your property functions like a hotel, with the same seasonal price and occupancy dynamics.

2 : More flexibility

This provides more flexibility if the owner rents out the property for a short period of time. With the short-term rental business model, landlords always have the option to reclaim their property and reconsider what they want to do with it, or to reserve a slot in the property so they can use it without worry. Anyone.

3 : Less wear and tear

Rental terms typically range from a few days to a few months. Since you’re visiting the property only to have visitors for a short period of time, don’t think about redecorating or rearranging the furniture  between leases

4 : Tax breaks and deductions

Many owners of vacation rentals qualify for specific tax deductions or deductible real estate expenses because the property is not a long-term rental, depending on local jurisdictions and regulations. Verify this with the rules and regulations of your local government.

5 : Contribute to the sharing economy

Nowadays, the sharing economy and its advantageous effects on society as a whole are frequently discussed. You demonstrate that you are an innovator supporting this contemporary lifestyle by renting out your property to transient tourists and business travelers.

6 : PropTech: Property management automation

This specialized area of real estate has become highly technological thanks to technological advancements like smart locks and smart apps. Every day, numerous new chances arise to enhance the experiences of both guests and owners.

What is an Annual Long-Term Rental?

The traditional annual long-term tenancy contracts, in contrast to short-term rentals, typically refer to property that is rented for periods of one year or longer. Renters typically cover other costs like utility bills and minor maintenance by paying the homeowner every month for the entire year in advance.

Advantages of Annual Long-Term Rentals

Annual rental revenue ensures a regular source of income for property owners for at least a year. Additionally, the unit can be rented without furniture, saving you money on furniture purchases. But there are other concepts that are frightening. They give a lot of power when they hand the keys to long-term tenants. Instead, if you have visitors staying for a little period of time, you are free to check the house out for each visitor so that you may report any problems more quickly.

Due to the workload involved, many owners of investment properties keep clear of short-term rentals. However, there are specialized professional managers who handle all reservations, check-ins and check-outs, cleaning, maintenance, and marketing for the property, such as LIMITLESS CAPITAL. Thus, landlords could earn significantly more money with no additional work. With a focus on short-term rentals, LIMITLESS CAPITAL provides top-notch property management services that satisfy both tenants and landlords.

How Locate Vacation Homes can help you

Locate Vacation Homes is an Airbnb property management company with locations in Dubai, besides offering rental services. Renting a property can be a hassle, however our company provides the finest services in Dubai, so you don’t have to fret. Everything from check-in to check-out, maintenance issues, marketing, property damage, cleaning, and getting you the best price for your apartment will be handled by us. We manage both short- and long-term rentals, with short term providing a profit and the long term generating a fixed sum. Choose us for your contemporary property and don’t be frightened.