As with many other things in the world today, there is a lot of uncertainty surrounding vacation and short-term rentals which, in North Carolina, are any rentals for a period of less than 90 days. Even with some restrictions on short-term rentals being lifted, there is no guarantee that they won't be reinstated in the future should we see another uptick in Covid-19 cases.
Long-term Rentals Guarantee Income in an Unpredictable Market
The good news is, if you are using your investment property as a long-term rental and have a tenant in place, their tenancy will not be affected by Coronavirus-related restrictions like short-term rentals may be, and you will have guaranteed income for the duration of the lease. Long-term tenants give property owners peace of mind in knowing that there is someone firmly in place in their investment properties versus banking on the vacation market remaining open and steady throughout the busy season.
Though North Carolina is cautiously opening up vacation rentals at some area beaches, this is being done with restrictions still in place. As of May 8th, 2020, Wrightsville Beach, for example, is prohibiting vacation rentals to parties who reside in or have traveled to countries or states in the last 14 days that still have active stay at home orders. This especially puts a limit on vacation rentals as much of the tourist activity we see in the summer comes from these states. However, there are no such limitations on long-term rentals.
Less Wear-and-Tear on Property
Another factor to look at when considering long-term rentals vs. vacation rentals is, of course, income. Long-term rentals typically bring in the same if not more income than vacation rentals and don't bring along the hassle of constant turnover every week or two. This in turn leads to a lot less wear-and-tear on your property. Furthermore, long-term tenants consider properties they rent their personal homes and will treat them as such - they will care for the property as if it were their own which bodes well for the condition of your property and the state of your investment.
Financial Planning Made Easy
Long-term rentals also provide more peace of mind in budgeting and financial planning for the year versus vacation rentals. If you have a tenant sign a twelve-month lease, you're able to project your income for the entire year and get a clear picture of what your financial situation will be versus relying on tourists renting your property every few weeks. With the current unpredictable state of the world, this provides some much-needed assurance and stability for property owners.
If you own a vacation rental in the greater Wilmington area and are interested in exploring the benefits of long-term rentals, give the experts at Sweyer Property Management a call or contact them here. With all the uncertainty in the world today, you deserve some peace of mind when it comes to your investment property.