A past client recently asked us a question about rental properties. They wanted to know if they were better off having the property be a long-term rental that would require a lease to be signed, or a short-term rental like Airbnb.
You really have to look at the situation from a standpoint of risk vs. reward. With long-term rentals, you’ll have one person that’s going to be in there for an extended period, typically at least a month in the Twin Cities. You’ll find that person up front and won’t have to do much with the place in terms of maintenance except when the lease ends. You’ll be able to run a background check on this person and certify that they can pay you the proper rent.
There really isn’t a clear-cut answer.
With VBRO or Airbnb, there is a possibility of you making more money. However, it will require quite a bit of hands-on maintenance and evaluations of the people that are coming in. There aren’t any background checks so you won’t know as many details about the people you are renting to. There’s also going to be cleaning that needs to happen every time you have a turnover. You may make more money with this method, but you’ll have to put in more work to do so.
There really isn’t a clear-cut answer to which option is best. It all comes down to your situation and what your goals are. If you have any questions for us, don’t hesitate to give us a call or send us an email. We would love to hear from you!
