Short Term Rental Riches 56. Short-Term vs. Long-Term Rental? How Much Does it Really Cost?
Dec 8, 2020
Dive into a compelling analysis of the financial dynamics between short-term and long-term rentals. Discover hidden costs associated with each type, from vacancy issues to turnover expenses. Learn how overlooked fees like lease-up costs can affect your bottom line. This engaging discussion sheds light on the real impact of these differences, providing valuable insights for anyone considering a rental investment.
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Short-Term Rental Unique Costs
- Short-term rentals include unique costs like utilities, housekeeping, supplies, and furniture.
- Long-term rentals typically avoid these expenses as tenants handle utilities and housekeeping.
Long-Term Rental Hidden Costs
- Long-term rentals incur turnover costs, lease-up fees, and possible eviction expenses.
- These costs are significant and generally not a concern for short-term rentals.
Vacancy Differences in Rentals
- Vacancies in long-term rentals can last a full month or more, causing 100% income loss.
- Short-term rentals rarely experience full vacancy even during difficult seasons like COVID.