Long-term rentals have been popular for many years. However, the new monthly rentals are gaining popularity by property owners, and rightly so! Many advantages come with monthly furnished rentals. Let us take a look together.
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What are monthly rental apartments?
First of all, let us explain what monthly rentals are. Monthly rentals are neither long-term rentals nor holiday rentals. Corporate housing rental is a growing business that companies are betting on and from which more and more homeowners in the world are benefiting. With corporate housing, you are moving away from a long-term rental property.
Nowadays, more and more companies decide to send their employees abroad and we are very happy with this shift in the working world as this creates new opportunities for landlords.
The commitment to these temporary rentals not only allows companies to save costs by moving their workers to other cities or countries, especially when projects and businesses last for several months, it also has lots of benefits for the homeowner. We will take a look at the monthly rental advantages below:
The perfect tenant
Not only do property owners avoid the high turnover and high maintenance costs of tourist rentals, but the client pays well and on time as it is a responsible tenant, with a double guarantee of payment. On top of this, the landlord saves a lot of money and time with check-ins and check-outs as the relocation company manages everything and you don’t have to worry about this.
Not to mention all the time you save on administration. If you rent your property through a relocation company, the company is responsible for the contract and the payments, therefore it is like “the perfect tenant”. You don’t have to do anything, except provide all information about the property. And you certainly don’t have to worry about payment troubles.
With tenants coming and going frequently, you can keep up on small repairs before they turn into bigger problems. This way you can maintain the house better and keep it in good condition.
If you rent with a relocation company, they often offer property management as well. This takes a load off your shoulders and everything is taken care of by the rental company. However, you do have to pay for this service.
Flexibility of temporary apartments
If you have invested in a property and want to use it yourself, you can do so without any problems. You are not stuck with a long contract that binds you. With monthly rentals you can decide for yourself when you want to use your house and which months you want to rent it out. You do not need 100% availability to be able to rent out your house every month.
Monthly rental also comes in handy if you do not reside in the same country as your property. In this way, your property is indirectly taken care of. You have less security than with the traditional long-term rental but you can choose to enjoy your second home during the summer months for example. It is nice to have that freedom.
Since you often change your tenant, you again have flexibility regarding the rent. You are not tied to a long-term contract as you are with long-term rentals. This also means that you can change your rates without any issues as the market evolves.
No domicile, no hassle
If you rent your property temporarily, the tenant may not register at the address. This ensures that you will not get into trouble if you have problems with the tenant and want him out of your house. At any time you can “claim” your property back. With long-term tenants, you don’t have this advantage and it is much more complicated to kick out your tenant.
The properties for monthly rental must be fully furnished and ready to move into. This means that the prices are all-in and include all costs of electricity, gas, wifi,… This ensures that you can ask for a higher rent than whit traditional long-term renting. Thanks to this, renting out a house every month is much more profitable for owners than long-term rentals. On average you can ask for 40% more rent with monthly rentals.
Both long-term rentals and monthly rentals have advantages and disadvantages. If you rent your property per month, you will have more interactions to keep it clean and organized. If you hire a property management company, you won’t have to worry about this but you do have to pay their fees, which can be expensive for some. First, you also have to invest in the property as they have to be furnished to be rented out short-term.
However, when it comes to long-term rentals you will have less cash flow and you have to stick to the lease agreement. Due to the longevity of the tenants’ stay, they will also create more wear and tear on your property.
As you can read, there are many monthly rental advantages. You keep control of your property, there is no need to worry and you can earn more money. What’s not to love about that? However, it is not always all sunshine and roses. Whatever you choose to do, there will always be pros and cons that come with it.
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