Short-term vs. long-term is an age-old debate for property owners. There are pros and cons to both sides. Some properties are also better suited for short- or long-term renting. Lastly, they offer different experiences for the homeowner.
Sea Scape Property Management works with both short-term vacation rentals and long-term rentals. We uncovered 10 essential signs homeowners should consider before turning their property into a long-term or short-term rental.
Determine your preferences under each category to decide which is best for you!
- The type of accommodation
Coastal North Carolina is a unique market where some properties are more successful than others in short- or long-term renting. Your property size determines the number of guests or tenants. Even how expensive your home is can affect the market you pursue.
- Long-term rental: multi-family properties, homes priced within the market average
- Short-term rental: luxury or unique properties, condos
Sea Scape Properties helps homeowners with a home analysis to determine if your property is a good fit for long or short-term rental.
- The location
Consider who will be staying in your property. Vacationers prefer being near the ocean and other tourist hotspots. The more foot traffic, the better! Long-term tenants prefer communities to feel “at home.” Residential areas with access to grocery stores, transportation, and other everyday living essentials are all important considerations:
- Long-term rental: popular tourist areas, oceanfront, near the beach
- Short-term rental: quiet residential areas
- Is it allowed?
Certain properties determine the decision between short-term or long-term renting for you. Consider the regulations within a HOA community that may prohibit short-term renters. Other locations may have minimum-stay requirements to filter out particular renters.
Abide by these rules to stay in good standing with your community rules. Double-check before closing on a property and learning later that you can’t use it as intended.
- Laws, rights, & regulations
HOA community rules aren’t the only regulations to consider for your long-term or short-term rental. Long-term tenants have lots of tenant rights that keep them safe during occupancy. There are certain things you can and can’t do as a landlord with a long-term tenant. For example, you can’t kick them out of your property without cause whenever you want. Short-term rentals have rules within their communities and rules set explicitly by the homeowner. For example, you can prohibit pets and parties.
- Length of Stay
Every state defines short-term vs long-term differently. Short-term stays in North Carolina are anything less than 90 days. Long-term stays are for tenants who sign a minimum six-month lease. Homeowners ready to commit to having their homes occupied for months at a time can consider long-term renting. Short-term properties have more flexibility in who uses the property. Here’s who’s most likely attracted to each type of property.
- Long-term rental: families, professionals, students
- Short-term rental: vacationers, seasonal travelers, business travelers
- Revenue Potential
Passive income is a goal for many property owners. The target profit differs for everyone—and can impact your decision on going the long-term vs. short-term route.
- Long-term rental: more consistent revenue over the long-term
- Short-term rental: can charge higher per night but less consistent
Short-term rental homeowners in the coastal North Carolina area must consider the travel season. Peak travel season is during the summer, but tourism is significantly lower during the winter and shoulder months. Higher rates during the peak are balanced with lower rates and vacancies during the rest of the year.
- Furnished vs. Unfurnished
Take a walk through your property to determine if it’s ready for short-term renting or if long-term is more suitable. Are there comfortable beds for vacationers to sleep at night? Is the kitchen equipped with appliances to prepare a meal? Is there a place for guests to lounge around? Is there fast wifi to enhance the productivity of business travelers?
It’s mandatory to have a furnished property for short-term renting. Long-term rental properties can be furnished or unfurnished. Consider the quality of furniture used to decorate each type of property.
- Long-term rental: durable, lasting furniture
- Short-term rental: convenient, trendy, easy-to-replace
- Management Services
Long-term and short-term rentals require different levels of engagement from the homeowner. Long-term renting is hands-off since the long-term tenant handles the everyday tasks. Short-term rentals require lots more engagement with cleaning, stocking, and managing logistics for each guest checking into the property.
- Long-term rental: less active management
- Short-term rental: active management
Consider using property management services from Sea Scape Properties to help with your long-term or short-term rental.
- Personal Use
Once you’ve experienced the beach and other fun things to do in coastal North Carolina, you’ll be glad you purchased a property here. The good news for short-term rental homeowners is that they have more flexibility in enjoying their own property. Block off the calendar during your annual family vacation time or plan a weekend getaway during a vacant weekend during the off-season. Long-term rental homeowners don’t have as much control over when they can stay in their own homes. It can be occupied for months to years.
- Long-term rental: less personal use
- Short-term rental: flexible personal use
- Market competition
How often do you want to seek new guests to stay in your property? Long-term rental homeowners who find a good tenant can sit back and enjoy passive income every month. Short-term rentals require active marketing to keep their reservation calendar booked with guests.
- Long-term rental: less market competition after landing a reliable long-term tenant
- Short-term rental: constant market competition for new guests
Is long-term renting more appealing for your property? Explore our solutions for long-term property management. For short-term rentals, our vacation rental experts at Sea Scape Properties are ready to help!