Renters for a Weekend or a While:
What’s the Best Use of
Your Investment Property?
Long-Term (Traditional) Rental Market
Create an additional stream of income as your property appreciates in value over time.
Benefits:
• Stable, predictable cash flow
• Long-term tenants mean less day-to-day
management of the property
• Renter covers utility bills
• No need to furnish the property
Limitations:
• No personal use of the property
• Less flexibility to maximize revenue during periods of
peak demand
• Limited ability to monitor property use and upkeep
• Typically more wear and tear on the property
Rental units are now the fastest-growing
segment of the housing market. In the
United States, the demand for long-term
single-family rentals has risen 30 percent
in the past three years.1 And in Canada,
rentals now account for one-third of the
country’s homes.2
At the same time, the short-term, or vacation, rental
market is also booming. The popularity of online
marketplaces like Airbnb and HomeAway has helped this
market become one of the fastest growing segments in
the travel industry.3
Now, more than ever, there is an abundance of
opportunity for real estate investors. But which path is
best: leasing your property to a long-term tenant, or
renting your property to travelers on a short-term basis?
If you’re looking to purchase an investment
property, vacation home, or future retirement home,
give us a call. We can help you determine the best
course of action. If that means buying outside of our
area, we can refer you to a local agent who can
help. Contact us to schedule a free consultation!
“Now, more than ever, there is
an abundance of opportunity
for real estate investors. But
which path is best: leasing
your property to a long-term
tenant, or renting your
property to travelers on a
short-term basis?”
Here or Elsewhere … We Can Help Sources: 1. USA Today 2. The Globe and Mail 3. Phocuswright
Short-Term (Vacation) Rental Market
Help fund a vacation/second home purchase by renting out
the property when you’re not using it.
Benefits:
• Use and enjoy the property yourself when it’s not rented
• Set the price and schedule you want
• Raise rates during times of peak demand
• Greater control over the property’s use and maintenance
Limitations:
• Less predictable income
• More day-to-day management required
• You pay utility bills whether the property is occupied
or not
• Laws and restrictions vary by location, so make sure
you understand any existing or proposed restrictions
on rentals in the area where you wish to purchase
Which Investment Strategy is Right for You?
• If your goal is steady, predictable income with less time
and effort on property management, then a long-term
rental may be the best choice for you.
• If your goal is to purchase a vacation or second home
and you want to defray some (or all) of the expense, then
a short-term rental* may be a good option for you.
• If your goal is to purchase a future retirement home
now to hedge against inflation and rising real estate
prices and interest rates, then … it depends. You will
need to consider factors like location, market demand,
and property type.
*Note: Short-term rentals are restricted in some markets. We
can help you assess regulations in your desired area.
The above references an opinion and is for informational purposes only. It is not intended to be financial advice. Consult the appropriate professionals for advice regarding your individual needs.
