The difference between Short-Term and Long-Term Rentals
Individuals who are considering purchasing a rental property for investment purposes have a number of decisions that they need to make. They have to decide the size and location of the property and whether they would like to purchase a townhouse, a condominium, or a house. They also need to decide on whether they would like to advertise the property as a short-term or long-term rental. This distinction is key for anyone looking to maximize the intended use of the property while also maximizing any income the individual may receive from it.
Short-term rentals have a wide variety of benefits over long-term rentals. An owner has the benefit of staying in and enjoying their property while the property is not in use for short-term rental purposes. Meaning an owner who utilizes the property as a short-term rental can elect to rent out the property for as little as a few weeks out of the year to as much as every week of the year. Short-term rentals have the possibility for greater income than long-term rentals. There is also the ability to change prices depending on demand for a particular property or during a particular season or time of year. Perhaps the greatest drawback of a short-term rental is the amount of time that it might be empty. There is always the possibility that a short-term tenant will back out at the last minute and the owner may have to list the property again; however with the help of a real estate attorney Orlando, the short-term rental agreement may be structured to offer some additional protections to the owner in the event that a last minute cancellation takes place.
Long-term rentals are any rentals that involve a considerable lease of some sort. The main benefit to these rentals is the fact that, with a properly drafted lease agreement, the tenant may be locked in to renting the property for months or even years. With a long-term lease in place, the landlord is almost assured that he or she will receive a certain amount of money every year. Furthermore, the landlord would not have to worry about expending moneys on any marketing or advertising efforts throughout the period of time that the property is being leased. The main downside to this approach is that an owner would not enjoy the benefit of staying and enjoying the property at any time that the property is being leased. Instead, with the exception of the owner visiting the property to fulfill landlord obligations, the owner will have to stay out of the townhouse, condominium or house during the term of the lease. Another downside is that, since the property is being leased for a longer period of time, there may be a relatively low return on investment in comparison to a short-term rental.
How lawyers can help
A real estate attorney Orlando can help an owner of real property with both types of rentals. Both types of rentals require an understanding of a Orlando real estate law attorney. A real estate lawyer Orlando can help an owner draft a long-term rental lease that protects the landlord yet remains fair for the tenant. He or she can also draft a short-term arrangement that may be used by an owner for any individuals who elect to rent the property for a short period of time such as a week or a weekend. Lastly, Orlando real estate attorneys can also help an owner ensure confirm whether short-term or long-term rentals would be permitted in the subdivision or the jurisdiction where the property is located.
Setting up the right type of rental agreement, which protect your interests as a landlord can beneficial to both your family and your wallet. Working with an Orlando real estate attorney at Nishad Khan, PL, will ensure that a properly drafted rental is entered into so that the owner is protected and that the owner will have peace of mind as he or she continues to build wealth with their rental property.