Investing in AMI rental property sounds like a sweet deal! It’s a beautiful location with a lot to offer. However, you might wonder if you should offer short-term or long-term leases. Both can be beneficial, but they also have pros and cons. Let’s dive into the short-term vs. long-term rental discussion to help you decide!
Anna Maria Island Real Estate Market Watch
As of April 2024, the average time to sell a home on Anna Maria Island was 68 days. However, the AMI real estate market is always changing. Contact the Anna Maria Life team for help buying and selling homes on AMI.
Short-Term vs. Long-Term Rentals on AMI: Which is Right for You?
Income Potential
With short-term rentals, the prices are daily rates. That usually means you can charge tenants more than you could with a long-term rental. In hot tourist spots, you can even charge top dollar. With the potential to charge more, short-term rentals offer more profit upside.
Meanwhile, long-term rentals have more consistent income due to the longer leases. The longer leases also reduce the stress of nightly or seasonal vacancies. In general, short-term rentals have higher income potential, but long-term rentals offer greater stability. For property owners, this matter comes down to your strategy and which you value more.
Property Maintenance
For short-term rentals, maintenance is done regularly, including check-ins and check-outs. It makes it simple to inspect the property often and address any maintenance issues quickly. However, you have the responsibility of cleaning and upkeep between every booking.
On the flip side, tenants cover utilities for long-term rentals. Tenants with long-term leases may also handle an array of routine maintenance tasks. For example, long-term tenants are usually responsible for routine yard maintenance.
Location and Competition
Short-term rentals could be your choice if you’re good with frequent turnover and vacancies. With AMI being a tourist destination, the market for short-term rentals is strong. However, there is also a lot of competition for vacation rentals. That means you’ll need to work to increase the occupancy rate and beat the competition.
Want a hands-off, steady income stream? Long-term rentals might be more your speed. They’re great for stable cash flow without too much hassle and perfect for properties in residential areas with constant demand.
About Tenants
Property owners must deal with constant turnover with short-term rentals. It’s never long before you need new tenants. However, there are various booking platforms and tactics you can use to maintain a steady flow of bookings.
Finding good tenants for long-term rentals can be a process. You must perform background checks and assess their financial ability to pay rent through the lease. Once living in the home, long-term tenants typically have more rights than short-term tenants. That can be another issue if you end up with a problem tenant.
Both short-term and long-term rental properties have advantages. What works for one investor might not work for another. Contact Billi to learn more about the real estate market and decide between short-term and long-term rentals. She is a local expert who can guide you!
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