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Should You Invest in Short-term Rental Properties or Long-term Tenants?

There are pros and cons to both short-term and long-term rental properties. Which is right for your investment?


[Updated: Feb 04, 2021 ] Oct 22, 2019 by Aly J. Yale

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PROS CONS
There’s potential for high earnings. There may be rules and regulations to deal with.
The barrier to entry is low. The income is seasonal and often inconsistent.
You’ll see less wear and tear on the property. You need to furnish, decorate, and stock the property.
You’ll get a vacation home for yourself. You pay the utility bills.
There's usually some form of payment protection. There’s little protection from loss and damage.
It requires more maintenance and upkeep.
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Pros Cons
The income is consistent and predictable. The property will get more wear and tear.
You don’t pay the utility bills. It may take more marketing to find tenants.
There’s more protection from damage. The barrier to entry is high.
You don’t have to furnish or decorate the property. You can’t use the property yourself.
There’s less maintenance and upkeep. You’re on call for repairs and emergencies.
You have less control over the home.
You could encounter payment problems.
You have little pricing flexibility.

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