Mar 04

Renting Out Real Estate: Can Short Term Leases Be Profitable?

If you are interested in making some money out of real estate, chances are that you will think about renting residential property to people who may need it. The growing demand for housing in many parts of the world means that if you star such a business in the right manner, chances are that you will be able to make a lot of money out of it in a short time.

When you are beginning such a business venture, it is always a good idea to try and get the specifics right as fast as possible. For instance, though it may technically be safer for you to offer the rentals for a long time, you may sometimes find it more profitable to offer short leases for the property you are renting out.

Instances where short leases may be more profitable

One of the instances where this may be profitable is when you offer furnished rental properties. Most of the time, people who are looking to get furnished properties normally don’t intend to stay for very long, which means that if you insist on asking for long leases you may end up getting very few customers. In addition to that, the fact that you can charge a lot for such properties means that it will be very easy for you to recoup your costs.

How to attract people to rent furnished properties

For this to work, however, you will need to find ways of attracting people who are more likely to rent the property. One of the ways of doing this would be to make sure that the property is well taken care of. For instance, once a customer has vacated the premises, you need to get the services of a carpet and pest control company to clean it up. This way, the next customers will find the property in pristine condition, and this in turn means that you will end up getting very good reviews from them.

Additionally, you need to identify the most likely group of people who will be interested in the property, and then market it to them in the right manner. This means making sure that you use targeted advertising to get their attention. This will reduce the cost of marketing without adversely affecting the quality of your marketing campaign.

The thing you need to remember is that when putting up a property for rent, you don’t always need long term leases to make the most out of it. Sometimes, you can easily make as much or even more by providing short term leases.