If you are a landlord looking to place your property on the market, you should know the differences between short and long-term letting. In this blog, we discuss the pros and cons of both options so you can make an informed decision. But first, what is the difference between short and long-term letting?
The main difference between short and long-term letting is how long the contract between tenant and landlord lasts. Short-term lets are six months or less, while long-term lets are commonly a year with the option to extend further upon agreement. Mid-term lets are another option that typically lasts three to eight months.
Read on to find out more about the differences between short and long-term letting so you can decide on the best option for you.
What Is A Short-Term Let?
Short-term lets have to fall within a certain time period to be considered short-term, specifically six months or less. This is usually considered rare as most landlords desire commitment from tenants for at least a year to guarantee a regular income. For tenants, this means that there may be a lot of competition due to the limited availability of short-term lets. Landlords can benefit from being able to pick their tenants from a larger range of applicants, especially in areas with a large demand for short-term accommodation.
Short-term lets are ideal for tenants looking for a convenient, comfortable place to live for a short period of time. This could be for work relocation, temporary accommodation while renovation is completed on their main residence, or selling their current home.
Another option for short-term letting is a holiday or second home that the owners don’t use for all 12 months of the year. This is a great way to gain additional income from holidaymakers who don’t want to shell out for a hotel for the whole family.
What Is A Long-Term Let?
A typical long-term letting lasts for twelve months which is commonly renewed upon agreement from both the tenant and landlord, known as a rolling agreement. Long-term lets can save landlords time and money as long as the tenant takes care of the property. They don’t have to redecorate, clean or renovate the property as often as short-term lets. Time is also saved by not having to perform background checks on new tenants. It also provides a more guaranteed source of income for at least twelve months.
The downsides to long term lets include being stuck in a contract with potential troublesome tenants which, unless they breach the contract, landlords cannot pull out. Landlords may also not be able to meet rising rent costs over the years unless a break clause is added to the contract.
What is a Mid-Term Let?
Mid-term let contracts last anywhere from three to eight months. This type of letting is ideal for tenants looking for a short-term accommodation solution. Landlords can benefit from being able to charge more per night for mid-term and short-term lets.
Mid-term lets are ideal for students or employees working on a short-term contract who need to relocate briefly before moving back to their main residence. Families can also benefit from mid-term lets when their home is being renovated, expanded or maintained.
Short and Long-Term Letting at The Home Crowd
At The Home Crowd, we understand the importance of making your property as comfortable as possible for tenants. We have different packages available to suit your needs and provide expert advice to prepare your property for tenants. This is why in each of our packages we take care of the hassle so you can focus on gaining more revenue. Find out more about our lettings service by contacting a member of our team today.
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