Advantages of monthly rentals for landlords

As a property owner, there are many ways you can make passive income through your rental homes. You can rent out your property on a monthly basis or short-term. The question is, should you rent out your investment property as a short-term holiday rental or a monthly rental? A short-term and monthly rental vary in the types of tenants, occupancy, and costs for each rental system.  

Monthly rentals refer to leasing a furnished apartment, flat, or house to expats, companies, or business travellers, for a short period, from 1 month to a maximum of 12 months.

We understand that it can be challenging to decide how you should rent your property. That’s why we will break down the pros and cons of monthly rentals vs short-term rentals.

Table of Contents

Short-term holiday Rentals


Renting your property out short-term usually means renting to tourists or other short-term visitors. There is a lot of upkeep involved with owning a vacation rental property. You’ll have to keep up with regular maintenance and repairs, but you’ll also have a lot to do for each guest’s stay. This includes housekeeping (whether you hire someone or do it yourself), restocking, and answering the guest’s questions and concerns.


However, dealing with tourists can present several challenges to property owners. Tourists are not always respectful of the rental properties they stay in. Sometimes, clients will rent out short-term rentals to use them exclusively for parties, which can damage your property and irk your neighbours.

Monthly Rental Advantages for Landlords

Good tenant

As a monthly rental property owner, one of the most common tenants you will rent are “corporate” tenants. Nowadays, many companies will pay employees to spend long periods abroad. So, monthly rental properties are ideal to ensure proper housing for more extended periods.  Almost all corporate tenants require furnished properties. 

The advantages of monthly rentals for landlords renting to corporate tenants are numerous. If you rent with a relocation company, corporate month-month tenants can offer a very hands-off approach for property owners.

Because they often stay for business trips, monthly rental tenants are less likely to disrespect your property. Generally, month-to-month tenants require less frequent management than short-term tenants. This eliminates many of the cons of dealing with tourists. 

Higher turnover

With monthly rentals, you also avoid the high turnover and high maintenance costs of tourist rentals. Most of the time, the company pays the rent of the client, therefore you have fewer payment issues. 

If you rent your property through a relocation company, they manage all check-ins and check-outs, which comes in handy and is time-saving as a property owner.

Short-term Rental Occupancy and Costs

Occupancy depending on the season

The short length-of-stay of clients in short-term rental properties is viewed by many as a pro.

However, short-term rentals often lead to unstable rental income and damage to the property as the tenants often don’t treat it with respect. 

The frequent check-in and check-out procedures necessary for short-term rentals can also drive up costs for the landlord. Because of the nature of short-term tenants, repairs and maintenance can be frequent and costly. Unless the house is inspected regularly, it can be challenging to catch nagging maintenance issues.

Unless your property is located somewhere which offers year-round sun, short-term rental owners often experience a lull in rentals in the winter months as well.

Monthly Rental Occupancy and Costs


Monthly rentals with corporate tenants offer much flexibility. Some property owners fear that monthly rentals will result in long contracts, but this is usually not the case.

With monthly rentals, you can decide in advance which months the property is available and which months you need it for private use. 

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. You do not need 100% availability to be able to rent out your house every month. 

Fewer occupancy issues

Because they are renting on business, month-to-month rentals eliminate many of the occupancy issues and high costs associated with short-term rentals. Because they are staying on business, monthly tenants do not care about the winter or summer months. This means a more steady stream of income for rental owners. In addition, there are much fewer check-in and check-out hassles and fees with monthly rentals, especially if you rent with a relocation company.

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.


For most property owners, month-to-month rentals provide more flexibility, less hassle, and a more stable income than traditional short-term holiday rentals. Both come with advantages and disadvantages. What suits one landlord, doesn’t necessarily suit the other. If you have questions about a month to month rentals or need help, renting out your property by month don’t hesitate to contact us.

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