Many investor owners have joined the digital economy and short-term letting bandwagon, but experts maintain that long-term letting is still the way to go. For the longest time, landlords and property investors prefer the long-term letting business model. The introduction of property management rights has also leveraged this business model, bringing billions of revenue to the housing and renting market.
Permanent long-term letting is a business model that targets high-quality tenants, and even short-term renters, such as tourists and business travellers who are looking for a home away from home. Unlike hotels, these businesses provide renters with an opportunity to live comfortably in a fully-furnished, safe and secure home for periods of one month to more than a year.
Resort Brokers Australia, a management rights brokerage business in Queensland, reports that the business model is a popular choice among motels, serviced apartments and other rental services.
Long-term letting is also an attractive option across corporate networks, particularly in industries that offer housing benefits to employees, such as in the mining, exploration, financial and agricultural sectors. Property managers in these housing and renting hotspots also enjoy the convenience of securing long-term tenants that are low-risk.
Managing long-term tenancies is a lot like managing short-term lets but is more practical in the long run. The concept of permanence encourages tenants to treat the space like it is their own, keep it neat and comfortable for their own benefit.
Short-term rentals tend to have high-volume traffic, which causes shared facilities to get overused, resulting in obscene maintenance, repair and insurance costs. Moreover, short-term lets may also result in increased noise, illegal parking, and damage to common property, as well as safety and security issues.
On top of these, the biggest advantage of permanent long-term letting is that regulations are well in place to protect the interests of the landlord, property investor, property manager and the renters. It is still the best choice for rental property owners who want to make a real and meaningful profit.