MEME4D x Flexible property management: Five benefits of both long term and short term leasing -

Flexible property management: Five benefits of both long term and short term leasing

Property remains one of the most financially rewarding investments available and we never get sick of saying that. The market has seen some changes in the past few years, with the increase in short-term rentals thanks to Airbnb. Now, we have options – long-term tenants when permanent rentals are most suitable and/or short-term guests for when the location demands higher rates for accommodation.

Here are five benefits to having access to both long-term and short-term tenants:

1. Flexibility

The flexibility of being able to stay in your investment is one of the major attractions of short-term renting. Just because you have a property manager, doesn’t mean you lose this benefit. Just one email to your property manager and they can block out the dates in your property calendar for your family holiday.

When the market starts to slow down and better returns can be achieved from long-term renting, all we have to do is place it back into the long-term rental pool. It’s that easy.

2. Higher Returns

Higher returns can be achieved by timing the market. We like to make the most of seasonal fluctuations by advertising for short-term guests in the high season. This is when tourism is the most active, usually summer but depending on your location. It also happens to be the time when we can ask for the highest nightly rates, which can sometimes be as much as the weekly rent!

3. Better Maintenance Reporting

Condition inspections are conducted every 6 months for long-term tenants, which is sufficient to ensure maintenance is up to scratch. For short-term renting however, this is not enough. We need to keep a closer eye on things.

That is what our cleaning team does – reports on any maintenance issues with each turnover. This means maintenance issues are identified and addressed in a far more timely manner.

4. Lower Vacancies

The traditional model of long-term leasing relies heavily on tenants paying rent consistently and renewing their lease. A good property manager should be proactive to advertise the property well in advance to minimise vacancy, but having the option to put the property into the short-term pool means we have another way to do this.

5. Higher Rental Rates

The domestic traveller trends have taken people to the city fringe and suburban towns, which they would not have otherwise visited. When the local café and restaurants can remain in business during these tough economic times, the locals can enjoy all the conveniences available. This has a knock-on effect which will generate high demand for rentals in the area, which in turn increases your rental value.

At Airtip we like to be one step ahead of the market. We have embraced the changes in the property industry because we know from experience, better returns can be achieved from adopting a more flexible property management model – both long-term and short-term leasing.

This doesn’t mean completely separate departments that don’t talk to each other – it means having the technology to switch easily from one type of lease to another.

Let’s take for an example a tenant who experiences unforeseen circumstances, which means they have to break their long-term lease. A traditional property management model would mean advertising for another long-term tenant and going through the motions to minimise the time the property is vacant.

We have a better solution.

We already have a short-term listing ready to go live as soon as the tenant has moved on and the property has been sufficiently cleaned. At the push of a button, your property will be advertised on over 40 platforms to get the maximum exposure to guests and the property could be rented out in as little as a few hours.

The only decision we have to make now, is whether or not it is the right time in the market for long-term or short-term rental. Which of those options will maximise our owners return on investment?

Isn’t that a great problem to have…

If you are ready to start earning some great returns for your property investment, get in touch and we can assess your property’s full potential.

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