Is a short- or long-term letting better for your investment property?

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The rental vacancy rate is so low in many regional areas, and rents, as a result, are so high. Does it make more sense to let out a property as a regular residential tenancy, or put it on a short-stay platform?

As so many investors bought property during COVID-19 in regional tree-change areas, many are now working out what to do as the pandemic, hopefully, subsides.

“I was one of those,” says Luke Harris, chief executive of The Property Mentors and co-author of the property investors’ guide“I bought a place at Airlie Beach in the beautiful Whitsundays and shifted there from Melbourne. Nathan Lewes, managing director of boutique investment firm AssetBase, says it’s a very common quandary.But he’s been advising his owners to let out their houses and apartments to long-term renters, often with longer leases to avoid the costs of re-advertising.

“If you have three or four properties you can balance that out by doing it full-time but otherwise you’ll be paying a pretty penny for the service. Also, you might find it hard during the winter months when it becomes less desirable for visitors to go there or when people do end up going back to work.”

 

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Short vs long-term letting: Which returns are better for your investment property?The rental vacancy rate is so low in many regional areas, and rents, as a result, are so high. Does it make more sense to let out a property as a regular residential tenancy, or put it on a short-stay platform?
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