Monday, September 23, 2024
Facts of Interest Investment

The myth of the higher wear and tear of tourist rentals

Tourist rental does not necessarily wear and tear more than long-term rental. Although tourist properties have a high turnover of guests, they tend to receive frequent and proactive maintenance, which can prevent significant wear and tear. In contrast, long-term tenants can cause less obvious accumulated wear and tear until it becomes a problem. Proper management and maintenance is crucial to determine the real impact on the property.

Does Short-Term Rental Really Cause More Wear and Tear on a House?

Does Short-Term Rental Really Cause More Wear and Tear on a House?

Short-term rentals have emerged as an option for property owners looking to maximize their real estate profitability. However, the myth persists that this type of rental causes more wear and tear on properties than long-term rentals. In this post, we debunk this myth and examine the real impact of short-term rentals on the durability of homes.

The Myth of Greater Wear and Tear

It is common to hear that short-term rentals may lead to greater wear and tear due to the constant change of guests and intensive use. It is argued that this frequent turnover can result in accelerated deterioration. However, it is essential to analyze this aspect from an objective perspective.

Comparing Wear and Tear: Short-Term Rental vs. Long-Term Rental

1. Frequency of Use and Maintenance

Short-Term Rental: Properties in short-term rental usually experience a high volume of guests over short periods. This can imply a greater need for cleaning and maintenance between stays, but it also requires frequent inspections and repairs. The opportunity to address issues immediately can, in fact, prevent severe deterioration. Rental management companies implement rigorous cleaning and care programs between stays, allowing proactive detection and resolution of issues. Additionally, guests do not usually spend their entire stay in the villa or apartment but rather go out to explore the area and enjoy vacations with leisure activities and services. Likewise, the use of facilities such as bathrooms or kitchens is often reduced, as many prefer to eat out and complicate things as little as possible.

Long-Term Rental: Although wear and tear might seem less frequent, the continuous presence of long-term tenants can lead to intensive use that goes unnoticed until it becomes a significant problem. Less frequent inspections and repairs may contribute to accumulated wear.

2. Maintenance Responsibility

Short-Term Rental: Owners tend to be more attentive to the management and maintenance of short-term rental properties. Investing in professional cleaning and maintenance services ensures that the property remains in optimal condition. Rental platforms and companies also encourage communication with guests, allowing for quick resolution of any issues.

Long-Term Rental: Long-term tenants might not have the same incentive to keep the property in perfect condition. Maintenance issues may not be reported immediately, which can lead to greater wear over time. Repairs and maintenance may be less proactive compared to those conducted by a management company. The constant use of appliances by regular use leads to their deterioration. Tenants will regularly use dishwashers, stoves, bathrooms, washing machines, etc.

3. Impact on Property Value

Short-Term Rental: Regular maintenance and an attractive design can increase the property’s value. The high turnover of guests allows owners to adapt and improve the property over time, which can result in better appreciation of value. Moreover, professional short-term rental management services often include regular upgrades and improvements to keep the property competitive in the market. These investments can enhance the property's value in the long term and ensure high appreciation.

Long-Term Rental: While the stability provided by long-term rentals can be beneficial, the lack of continuous updates and improvements can negatively impact the property’s value. Without regular maintenance and updates, the property’s value may stagnate or even decrease.

The myth that short-term rentals cause more wear and tear than long-term rentals does not always hold true. The difference in wear and tear often depends on the quality of management and maintenance the property receives. Short-term rental management companies are designed to keep properties in optimal condition, which can be more advantageous than the accumulated wear in long-term rentals.

Understanding these dynamics can help property owners make informed decisions about which type of leasing is more suitable for their goals and property. Ultimately, professional management may be key to maintaining and increasing the value of your real estate investment.