When you decide to invest in a property with the view of letting it out to tenants, you have to consider whether it will be for short or long term lets. There are plenty of advantages and disadvantages to both, so you might even decide on a property-by-property basis as you build your portfolio. Here are some of the things to consider when buying a property to let.
Town and Neighbourhood
Where are you buying the property? This might have a big impact on the types of tenants you could attract to the place that you decide to purchase. If you buy a rumah sewa Penang, this would maybe be more suited to a long-term tenant. You could attract a young professional or maybe even a family depending on the size of the apartment, and this would give them a comfortable place to live.
If you are thinking about buying somewhere that could be a bit more compact, and located near major tourist attractions or nightlife, this might be better for short term lets. Long term tenants might not enjoy this type of home, but there could be many who enjoy visiting for a short period of time.
If you are searching for something in the middle and the town that you are buying in has an excellent university, why not consider purchasing student accommodation? You have the potential for long term letting here if the same students return to you year after year to make their home, but you also have a guaranteed pool of tenants to draw from if there are going to be frequent changeovers. Though not everyone wants to rent to students, there is no denying that they represent a fantastic market that can offer a great potential for yield.
What type of landlord do you want to be? If you pride yourself on being very hands-on and ready to help out at a moment’s notice, you should think about long term lets. Having a tenant in place for a long period of time gives you the chance to build an amicable rapport with them. There should be an element of professionalism here, as having a friendship with a tenant can make things slightly difficult if you need to chase them up about an issue. However, being friendly and ensuring that a good rapport is maintained will only be beneficial for you.
However, you might prefer to simply buy the property and then let another company manage it for you. Many letting agencies nowadays do come with some form of property management, and this can be very beneficial if you are located in a different city from your property. They can handle anything from finding people to book your property to scheduling repairs that need to be made. If you want to sit back and let someone else manage your property, either as a long or short-term landlord, you need to make sure that you find a trustworthy company to handle the property in your stead.
Do you want to get any use out of the property at all? If you do, you need to make sure that you are marketing it for short-term use, so you are able to occupy it for parts of the year. For example, you might buy an apartment in a popular beach town. While you might not live here all year round, there could be a couple of weeks in the spring and summer when you want to swing by for a little holiday. You can’t do this if the property is occupied by a long-term tenant.
Most short-term rental companies will let you mark off parts of the calendar for your own personal use. This means that you can begin to plan your year and your holidays at the start of each new calendar. While you might not be able to swing by your property whenever you feel like it, you will be able to visit it and get some use out of it each year.
Short or Long, What is Right for You?
It can be difficult to determine whether long or short-term rentals are better for you in terms of yield, because it all depends on the market situation and whether or not you can attract the right tenants. Instead, much of it can come down to the type of property that you own.
If you are wanting something that you can make us of yourself, short-term will always be better. Likewise, if you would rather just add to your portfolio and let someone else call it home, long-term will be for you. Work out what your needs and wants as a landlord will be, and then head out and find the ideal property to meet them.