Hello, I’m Thomas Lloyd and this is the Top Tip in a Minute…
Today we are talking about what is the difference between a long term rental vs. a vacation rental property.
I will review 5 items to compare these two property types.
- Rental Rate per Day: Long term rental property’s normal have a much lower per day rental rate than a vacation rental. You will receive a considerable higher amount of money per night with a vacation rental.
- Occupancy Rates per Month: Usually the long term rentals are contracted out for a six months or normally 12 month contract. Where the vacation rentals are contracted out per night or per week. It is only logical that you will have your unit occupied much higher in a long term rental than in a vacation rental unit.
- Rental Managers: You will most likely need the assistance of a rental management company to help you keep your vacation rental occupied. With a long term rental you may be able to find your tenant by placing your own ad or advertising.
- Personal Use: If you have an unexpected vacation and wish to use your rental property for your break, you will most likely have your long term rental property occupied. Whereas if you have a vacation rental property you will most likely be able to book within an open window of rental dates.
- Wear and Tear: The vacation rental properties usually receive a higher usage and a little rougher treatment. Whereas on average, a long term rental receives a bit more TLC, that tender loving care. So you should work in a small budget for repairs and replacements on these properties.
I’m Thomas Lloyd and this has been Top Mexico Real Estate’s Top Tip in a Minute. Feel free to check out all the other informative Top Tip’s on the Top Mexico Channel.
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