You've just inherited a charming three-bedroom home in the heart of Jacksonville, FL. Nestled near bustling downtown and only a short drive from the pristine beaches, this property is bursting with potential. The question is, how should you capitalize on it?
Should you cater to tourists flocking in for sunny escapes, transforming the home into a short-term rental? Or does the allure of a stable, year-round tenant make long-term rental management the wiser choice?
Read on to learn about long-term vs. short-term property management.
Advantages of Short-Term Management
One of the most significant benefits of short-term rental management is higher income potential. Compared to long-term leases, short-term rentals often command premium nightly rates, especially during peak travel seasons or major local events.
This can lead to increased overall revenue if the vacation rental business maintains high occupancy rates. Jacksonville's proximity to:
- Popular beaches
- Vibrant downtown attractions
- Sporting events
Makes it an ideal location to tap into this lucrative market. Just make sure your visitors love your vacation property, and you'll keep them coming back.
Short-Term Management Drawbacks
Short-term rentals involve frequent guest turnover, requiring continuous communication, marketing, and scheduling of cleanings and maintenance between stays. This constant activity can be time-consuming and stressful for owners who manage their properties without professional assistance.
Unlike long-term leases, which provide consistent monthly rent, short-term rentals depend on occupancy rates and seasonal demand. Jacksonville's rental market may experience fluctuations.
So, you'll need to be intentional about your vacation rental marketing. Hiring vacation rental managers can help make the process a lot easier.
Long-Term Property Management Pros
Long-term leases create more stability. With tenants locked into leases of six months to a year or more, owners receive consistent monthly payments, making it easier to plan and budget.
This steady cash flow is particularly appealing for Florida property owners who rely on rental income to pay their mortgage payments or other expenses.
With fewer people coming and going, the property is subjected to less frequent use, which helps preserve its condition over time. A well-screened tenant who treats the property like a home can contribute to maintaining its overall value.
Cons of Long-Term Property Management
While long-term property management offers stability and predictability, it comes with its own set of challenges. Long-term leases bind the property to a single tenant for an extended period, limiting the owner's ability to use the property for personal purposes or make significant changes.
If market conditions improve or the owner wants to explore other rental strategies, they must wait until the lease term ends.
With fixed rent amounts, property owners cannot easily adapt to rising market rates or inflation until the lease is up for renewal. This can lead to missed opportunities for maximizing income, especially in a growing city like Jacksonville.
Long-Term vs Short-Term Property Management:
There's a lot to consider when it comes to comparing long-term and short-term property management. With this article, you should be able to make the choice that's right for you.
Are you ready to bring in Jacksonville property managers to help with Airbnb property strategies? PMI Jacksonville and our franchise have been ensuring investors like you succeed for two decades.
Contact us today for the advice you need.
