For landlords in Ireland, deciding whether to offer long-term or short-term rental leases requires weighing several factors. Both options have distinct advantages and disadvantages that should be carefully considered. Let’s explore the key pros and cons of each.
The Advantages of Short-Term Rentals
Higher Rental Income Potential Data indicates that short-term rentals like Airbnb can earn landlords significantly more revenue compared to long-term leases. A property renting for €1,000 per month could potentially earn triple that amount with short-term bookings. The higher nightly rates create increased income opportunities.
Meet New People If you enjoy interacting with travelers from around the world, short-term rentals allow you to frequently meet new and interesting guests. Hosting can be an enriching experience for sociable landlords.
Flexibility With short-term rentals, you maintain complete control over when and how long you rent out the property. You can block off dates for personal use or remove the listing entirely if your situation changes – flexibility that long-term leases lack.
The Drawbacks of Short-Term Rentals
24/7 Availability Listing on platforms like Airbnb requires being available to communicate with guests around the clock. Responding promptly to inquiries is crucial for positive reviews and visibility.
Frequent Turnovers With new guests arriving weekly or monthly, intensive cleaning like laundering linens and fully resetting the property is an ongoing requirement. This regular turnover is labor-intensive.
Constant Marketing To maintain solid occupancy rates, short-term rentals demand continuous marketing across multiple platforms to attract a steady stream of new bookings.
The Benefits of Long-Term Rentals
Reliable Income While nightly rates are higher for short-term rentals, the income from a long-term tenant is reliable and guaranteed for the duration of the lease term.
Low Maintenance Long-term rentals involve much less day-to-day maintenance and work for the landlord. With tenants settled in for 6 months to a year or more, less time is required for cleaning, communications, and marketing.
Responsible Tenants
Those renting long-term tend to be more invested in properly maintaining the property since it is their home for an extended period. There is an incentive to keep it in good condition.
The Drawbacks of Long-Term Leases
Reduced Flexibility Being locked into a lease agreement for 12 months or longer can be restricting if your circumstances change and you need to have guests stay, renovate, or sell the property. Long-term leases limit flexibility.
Ceding Some Control
With long-term tenants, landlords have less control over exactly how the property is treated and maintained during the lease period since it is the tenants’ residence.
As an Irish landlord, weighing these pros and cons for your specific property and situation will help determine if long-term or short-term leases are the ideal option to maximize returns while meeting your desired level of involvement. Many landlords opt for a strategic mix of lease terms as well.
About KPM Property Management
KPM Property Management has over 30 years of experience assisting Irish landlords in successfully managing all aspects of their rental properties. From marketing and leasing to maintenance and compliance, KPM provides expertise to take the hassle out of being a landlord. Contact KPM today to explore their full suite of residential property management services.
