There are several benefits to turning a vacation rental into a long term rental. At Warner Quinlan, we are in the unique situation of understanding both the long term and the short term rental worlds. Over the last two years alone, I have managed the transitions of over 75 short term rentals to the long term rental market. Today we are talking about the most important considerations for short term owners who might want to make the switch.
For starters, you don’t have to pay any sales or tourist taxes on your long term rental the way you do on a short term rental. Depending on the county your property is located in, that’s a savings of between 11 and 13 percent. Not having to pay that tax means there is extra money in your pocket.
A major benefit of the long term market is that you have 52 weeks of predictable income. That’s not the case in short term markets, and it’s rare to have an entire year booked and rent payments coming in for every week.
You have much lower overhead when you turn your property into a long term rental, particular on utility bills. There are a lot of costs associated with a property, including gas, electric, water, cable, Internet and telephone. All of those costs transfer to the tenant when you have a lease, so it’s not an extra cost to you, the long term rental owner.
There is also less maintenance to worry about. With your short term rental, you are always changing bedding and cleaning and updating. With a long term rental, that doesn’t apply because you have the same tenants in there for an extended period of time.
A final benefit is that you have a lot more time for yourself and your own pursuits. With a long term rental, you don’t have to do the constant marketing and endless working to get those short term bookings.
Turning your short term vacation rental into a long term lease carries many benefits for property owners. It has to be handled properly by experienced professionals that understand both markets. If you have any questions, or you are thinking about transitioning your own investment property, please don’t hesitate to contact Warner Quinlan about your plans. We’d be more than happy to help you.
