Residential or vacation rental?July 16, 2019
This is a common concern among our customers. The reality is not that one is better than the other, it all depends on what your goals are with the investment you are going to make.
Vacation rental offers several advantages. It is a way to get extra money to pay maintenance expenses during the year or to put them on the mortgage. During the holiday season, you may be able to charge a higher price when demand increases. And finally you have the flexibility to use the property for yourself if you want it.
As for the disadvantages there is the vacancy risk. It is true that with this type of retntal rental you can receive above average income, but it is also true that this income will not be high or constant consistent throughout the year. You must keep this in mind and prepare yourself since all maintenance costs are monthly. On the other hand you may expereince experience a higher maintenace maintenance costs, these properties usually require more care, must be furnished and equipped, so there is greater risk of damage and again these repairs and maintenance will come out of your income.
Long-term residential rental offers the advantage of a permanent flow of rent, by established contract, which gives you more peace of mind and assures you that all the associated expenses will come from the rent and not from your pocket. Tenants tend to be more careful with the properties, which means less maintenance and it is not necessary to furnish or equip the unit or pay for electricity, which means less risk of replacement. However the gains are less attractive as they are not impacted by the season.
To make the decision, answer the following questions: What are you looking for? Have an additional monthly income? Generate surplus value? Achieve an asset that you can enjoy on a personal level and that can generate some occasional income?
At VS International Rental Properties we offer complete property management services: rent unit marketing, tenant selection, rent collection, tax and insurance counseling, periodic inspections, maintenance and repairs. We care about maintaining your property to protect its value. If you are interested in renting your property, write firstname.lastname@example.org.