From weekend guests to long-term tenants, this guide walks you through the perks, challenges, and key details of turning your Pensacola Beach property into a profitable short-term or long-term rental.
Got a second home sitting idle in snowy Colorado, nestled in Tennessee's scenic hills, or soaking up the sun along the Gulf Coast? You could be turning that place into a steady stream of income by renting it out short-term or long-term.
Sounds exciting? It can also be pretty profitable. If you're unsure about the ins and outs of short-term vs. long-term rentals, you're in the right place.
In this blog, I'll walk you through the key differences and perks of short-term and long-term rentals so you can figure out what works best for you and your property.
Here's a quick comparison:
At Pensacola Beach Properties, our team is passionate about helping owners succeed in the dynamic Pensacola Beach market, combining local expertise with a hands-on approach to property care and guest satisfaction. From strategic pricing and professional marketing to meticulous property upkeep and transparent communication, we're committed to maximizing your returns and minimizing your stress.
Let us handle the details, so you can enjoy the rewards of ownership without the hassle. Partner with us and see why so many property owners trust Pensacola Beach Properties to manage their piece of paradise. Reach out today or get a free rental projection and let's make your rental goals a reality!
Ready? Let's jump into the details!
What is a Short-Term Rental?
Short-term rentals, often called "vacation rentals," are furnished homes or condos that are typically rented out for up to 30 days. Platforms like Airbnb, Vrbo, and Booking.com are the most popular options to list these properties. Owners can manage everything themselves or work with a property management company.
Benefits of Short-Term/Vacation Rentals
1. Potential for High Profits
Vacation rentals are popular for good reason. They can bring in some serious income. Unlike long-term leases that stick to a fixed rate, short-term rentals let you adjust your pricing depending on the season. Got a Pensacola Beach house? Summer rates usually climb, while winter might be a little quieter. Holidays and local events are perfect chances to charge a bit more.
2. Personal Usage
One great thing about short-term or vacation rentals? You still get to enjoy your place! With guests coming and going more often, there are usually open dates where you can block it off for a quick escape or a special occasion.
3. Tax Breaks & Deductions
When it comes to making money with a short-term rental, the costs can pile up. Think cleaning, maintenance, property management, plus marketing and commission fees. The good news? Some of those expenses might be tax-deductible, helping you keep more of what you earn.
4. Outsourcing Property Management
One of the smartest moves vacation rental owners can make is to team up with a property management company. At Pensacola Beach Properties, for example, our team handles everything from cleaning and maintenance to marketing and guest services, so you don't have to lift a finger.
Challenges of Short-Term Rentals
Changes in Income
Short-term vacation rentals can bring in great money, but bookings don't always follow a steady pattern. Slower seasons, shifting markets, and even a rainy forecast can throw things off. Tweaking your rates to make up for it isn't always simple.
But don't worry, seasonal dips aren't the end of the story. A few smart touches can make your place stand out. Think of cozy perks like a hot tub in winter or some well-chosen home upgrades. Little extras like these can help keep your calendar full, no matter the time of year.
Additional Maintenance
One downside of having more guests come and go is that it usually means more cleaning and upkeep. Plus, guests expect things to be in great shape—and if they're not, they'll definitely let you (and everyone else) know.
The good news? You don't have to handle it all yourself. When you partner with property managers, you get expert cleaning and access to a trusted team of maintenance.
Short-Term Rental Regulations
With more folks listing their places on Airbnb and Vrbo, some neighborhoods are starting to push back. It's a good idea to check in with your local rules, HOA, or anyone else who might have a say before you start renting your place out short-term.
What is a Long-Term Rental?
Long-term rentals are usually leased for six months or longer. These properties are typically unfurnished and come with a fixed monthly rent. Most long-term rentals are self-managed, but you can also bring in a local manager to help.
Benefits of Long-Term Rentals
1. Less Turnover and Maintenance
One of the nice things about long-term rentals is the stability. Tenants usually sign on for six months or more, so you're not constantly dealing with cleanings or small repairs. In some cases, they even take care of the yard. And once someone moves in, you can take a break from having to market the place all the time.
2. More Steady Income
If you're after a slower and steadier kind of income, a long-term rental might be just right. Tenants usually pay for their own utilities like electricity, WiFi, and water, and seasonality doesn't really come into play. Once they sign a lease, you can count on a more stable paycheck for the duration.
3. Security Deposit for Potential Damage
Sometimes, the longer someone stays, the more chances there are for wear and tear. With short-term rentals, you usually have insurance to back you up. For long-term stays, tenants typically put down a security deposit, often equal to one month's rent. They might get it back when they move out, but in the meantime, it gives you peace of mind.
Challenges of Long-Term Rentals
No Personal Property Usage
One thing to keep in mind with long-term rentals: you won't be able to use the place yourself while someone else is living there. So if you were dreaming of a beach weekend, a family get-together, or just some time to unwind at your own spot, that's off the table during the lease. It really comes down to how much you want to enjoy the place yourself and how often you plan to visit.
Higher Risk of Damage / Tenant Issues
Picking the right tenant isn't always easy, especially when someone's staying for the long haul. With short-term rentals, it's a lot simpler to hand things over to a property management team that can handle guest issues quickly during their brief stay. But when one person lives in your place for months on end, you might end up fielding constant complaints and dealing with more wear and tear just because they're around for so long.
Lower Income Potential
Long-term rentals usually come with a fixed monthly rate that stays the same for the whole lease. That means you can't bump up the price during busy seasons or adjust it based on demand. Even if your place could bring in a few high-paying bookings each month during peak times, with a long-term lease, you're locked into that single monthly check.
It's Time to Get Started!
At Pensacola Beach Properties, we handle everything from start to finish.
A partnership with us makes renting your vacation rental property more effortless than ever. Our top priority is helping owners grow and protect their vacation rental investment. Stress less and earn more with our process! For a free revenue estimate, click here to see your property's rental potential!
