Is long-term leasing for you?
For many people, it is. Many property investors believe that with long-term leasing comes a steady passive income in a great neighborhood. Now, let’s be clear. Long-term leasing technically is anything longer than six months. If you are looking for information on short-term leasing, you can find that here. Long-term leasing is generally what most renters look for. Most people are looking for at least 1-year rentals. In some cities and towns, you might find a heavy population of military service members. Some might be even interested in more extended leasing options. Most military orders are generally every three years.
Today, we will look at the pros of long-term leasing as a landlord, so you know which option is right for you when the opportunity comes up.
Consistent Rental Income Stream:
Consistent is the keyword here. When tenants sign a long-term leasing option, they agree to pay the rent for a contracted time. Whether that be one year or more, you know that unless something drastic happens, that rental income is coming in to cover your mortgage. Short-term leases offer much less stability and sometimes can often leave you with a vacant property with a quick turnover. Even with market fluctuations having a long-term lease allows you to bypass the hard times of not having renters because, well, everyone needs a home to live in, and as we said, most people who sign long-term leases have every intention of staying put.
Helps plan for the future:
With long-term leasing comes the ability to pay down your mortgage without living there. Often after years, leaving you the ability to pay off that mortgage and with any positive cash flow that comes in, become a savings vehicle. It also is more predictable, which helps make budgeting easier. You might even see how keeping costs down becomes more of a regular pattern as a landlord.
Month-to-Month options after the lease expires:
This is an excellent option for those tenants that might be military. Generally, Servicemembers know when orders are coming up soon. They sometimes get to choose where they are going, and some get to pick several places of interest and then learn where they are going next. This gives the amplest time to notice, and some might need a couple of months after their lease expires to pack and leave. Having the option of month-to-month after a lease has not only helps them but also could help you by starting looking for a new tenant to eliminate any chances of vacancies in between.
So as you can see, long-term renting is a wonderful option with property investing. If you can qualify for a mortgage, the possibility of long-term learning is there for you! Not sure still if long-term or short-term is right? Want another valuable source to back up what you might read about leasing from a reputable source? Learn what FORBES has to say here. Here at RentWise Property Management, we strive to make your experience as a landlord as easy as possible. There’s a reason our motto is Less Hassle, More Happy. It’s what we are good at doing and what we enjoy doing! Consult with us today on your options, and let us guide you in a better place for your rental options!