Renting properties is a form of investment and requires you to choose which type of rental you want to resort to. There are two types of rental business .
1.Short term rental
2.long term rental
There are several factors to evaluate, to understand whether it is convenient to rent in the short term or to rent in the long term. Often, this decision seems almost obvious, following the nature of the property and the objectives pursued.
What is Short term rental? and Beneficial of Short term rental? :
Short-term rental - in common language, tourist rental or "holiday homes" - is the rental for delimited periods of a furnished property and is precisely regulated by a temporary contract which must be renewed periodically so that it remains valid. In fact, at the owner's discretion, as well as based on the location and a series of other factors, this type of property is usually rented on a weekly or daily basis.
There are two types of short-term rentals:
tourist rents and transitory rents. The tourist rents refer to stays of a maximum of 30 days and do not require the registration of the contract with the Revenue Agency (a private writing between the two parties is sufficient). Temporary rents, on the other hand, range from 30 days to 18 months, where the deposit of the contract is required.
Over the past few decades, vacation rentals have become a popular alternative to hotels. This, in particular, with the birth of websites like Airbnb, HomeAway, and VRBO, based on the sharing economy
SHORT-TERM RENTAL PROPERTIES:
1. GREATER FLEXIBILITY
A short-term rental translates into greater flexibility for the owner (and also for the tenant). It is possible to rent the property only in the periods of the year when you do not want to use it personally. This is the ideal solution for those owners who are able to offer hospitality and accommodation in a non-regular way and for this reason they need to manage reservations with some flexibility.
2. LESS WEAR DAMAGE
Usually, the duration of rental contracts for vacation homes varies from a few days to a few weeks. Renting for such short periods ensures that guests take advantage of the property without feeling the need to customize or redecorate it.
3. HIGHER INCOME
It is possible to set different rates depending on whether you are in high or low season . Not only that, you can also expect a minimum rental period in the high season, to make sure you maximize your profits.
For example, one-day stays are mostly counterproductive. In fact, every booking requires to be managed by contacting the guest, organizing the arrival and departure and also the general cleaning of the house.
4. TAX BREAKS AND DEDUCTIONS
Often, renting short-term properties means being entitled to tax breaks or deductions on property-related expenses. On this point, be sure to check the local regulations.
5. CONTRIBUTE TO THE SHARING ECONOMY
Nowadays we hear a lot about the sharing economy and its positive effects on society in general. Renting short-term properties means being innovative, contributing to the expansion of this modern way of living and thinking.
WHAT IS LONG-TERM RENT?
Long-term rent - unlike short-term rent - typically refers to properties that are rented for a month or more. Typically, renters pay the owner monthly, taking on the extra expenses like utilities.
Unlike short-term tourist rentals, where in the event that they do not exceed 30 days, the deposit of the contract with the Revenue Agency is not required, for long-term rentals it is necessary to draw up a signed contract containing the agreement Between the parts.
RENTING LONG-TERM PROPERTIES:
1. GUARANTEED INCOME
One of the main advantages of renting long-term properties is the security of a monthly income you can rely on. Which can be a relief to those who have recently owned a property and are burdened with many expenses. In addition, long-term renters are generally responsible for paying periodic bills for the consumption of electricity, gas, water and often even the internet.
The long-term rental implies minor concerns related to the administration of the property (paperwork, key handover, marketing, etc.). Once the tenant signs the rental contract, he knows (with relative security) the length of his stay. The only need to worry about is finding a new tenant for when the house is free.
3. NO NEED TO FURNIS
Some (if not all) long-term guests bring their own furniture. This can make your decision easier if you are thinking of renting your unfurnished property. With the long-term rental, not only will you get a guaranteed monthly payment, but you will not have to buy new furnishings for your home.
If you are concerned about the details of the rent, such as insurance, lease or deposit, there is no need to panic. For long-term F, it is normally possible to request a substantial deposit, which will be returned to the tenant at the end of the rental period, unless there has been no damage to the property. These cash deposits can give the owner one more reason to feel comfortable when it comes to renting real estate.