Short Term vs Long Term Letting?
Long Term Letting
– Secure (but inadequate) Rental Income
– No initial capital outlay for furniture
– Lower Rental Income than Short Term Letting
– Little control over tenants with limited access for inspection
– Higher “wear & tear” of fixtures with permanent occupation
– Not available for personal use at all
Short Term Letting
– Higher Rental Income than Long Term Letting
– Regular inspections of the unit by means of housekeeping, arrivals & departures, maintenance etc.
– Not occupied 100% means longer “life” of fixtures.
– Flexible to accommodate personal use & enjoyment
– Rental Income not 100% secure (50%* occupancy considered conservative)
– Initial capital outlay for furniture