Do you have an apartment and don’t know if you should go for a short-term or long-term rent? Keep reading to find out what their pros and cons are so you can make the right decision.
Advantages of Short Term Rent
- More Earnings: Short-term renters pay per night, which means you can earn more by renting for a short period of time. For example, if you rent an apartment for €100 per night, you will earn €700 per week, while a long-term tenant might only pay €1,200 for the whole month.
- Keep apartment in better condition: When tenants only stay in your unit for a short time, you can keep the property in better condition. It is easier to do maintenance and inspection on an apartment when it is empty than when it is
- Flexibility: If you want to have the opportunity to stay in your property when you are in the area, then short-term rentals can provide the flexibility you need to make this happen. You can choose when to rent and for how long.
- Price adjustment: Depending on the demand season, you can change the price per night, which means that you can maximize the yield – profit from your apartment.
Disadvantages of Short Term Rent
- Fluctuating income: Although you can make a lot of money with a short-term rental property, it can be seasonal or intermittently occupied. This makes rental income unstable and unreliable.
- More time – consuming: As your tenants may leave the property every few days or once a week, you should ensure that the site is thoroughly cleaned and restocked every time new tenants arrive. So you’ll spend more time doing it yourself or watching someone else do it.
- Non-Tenant Background Check: When you rent your home short-term, you don’t have the opportunity to do a background check on the tenant. In other words, you don’t fully know who is entering your home and why. The only positive is that you have been paid for his accommodation.
- More Regulations – Issues: It is important to first make sure that short-term rentals are allowed in your apartment building as some do not. In addition, know that there are many safety and cleanliness regulations that must be observed. Finally, if the manager or the tenants of the neighboring apartments are “strange”, they can complain to you about the noise or security as they do not know who lives next to them.
Advantages of Long Term Rent
Steady income: Although you can charge more for a short-term rental, the steady income of a long-term lease is attractive. You can expect the same amount of money every month for the duration of the lease.
Background Check: Unlike short-term renters, you can check the background of a potential tenant by renting long-term. This gives you more control – security about who lives on your property.
No operating costs: The tenants undertake to pay the operating costs (electricity, telephone, internet, water supply, utilities) with their own money. You won’t have to worry about paying these extra expenses like you would with a short-term rental property.
Disadvantages of Short Term Rent
Higher turnover costs: Although long-term tenants stay longer, the cost of repairing a property when they leave can be higher. After a long-term tenant, you may need to paint, replace the carpet, or fix more serious repairs.
Eviction harassment: If the tenant turns out to be more trouble than they’re worth, you may have to evict them. The eviction process can take a few months and during that time, you will have a tenant who may not be paying rent or may be causing more problems.
No flexibility: If you have made a closed contract with your tenant for 3 years, you do not have the possibility to increase the rent or to exploit your apartment in a different way. In other words, since eviction is very difficult, you have our hands tied until the end of the contract you entered into.
Tips 1: If your apartment is located in a tourist area (Koukaki, Syntagma, Monastiraki) then it is worth choosing the short-term lease. You will have more running but it will be worth it!
Tips 2: If your apartment is in a neighborhood that is not touristic (Keratsini, Vrilissia, Nea Smyrni, etc.) then choose a long-term lease to have a stable income.
Tips 3: In long-term leases, never make contracts with tenants for more than 2 years. Rent prices change quite a bit from year to year so if you have signed a five year agreement with the tenant you will be bound.