The pandemic and the economic situation continue to generate uncertainty. Several sectors await new measures to achieve a rapid recovery. However, Discover the reasons investing in long-term rentals generates great security and solidity, and represents a secure monthly income. If you’re thinking about buying an apartment , the following information will be helpful!
At Edifica Inmobiliaria, we believe that a percentage of this placement will be made to meet the natural demand of the local rental market. However, apartments purchased as investments now will be an attractive option for families looking to reduce their expenses with long-term rentals.
Below, we present the reasons why you should opt for long-term rental housing .
Reasons
1. Greater stability
Unlike vacation rentals, long-term leases offer stability for owners, egypt phone number library facilitating control and performance of the property. People won’t be constantly moving into your apartment; your tenant will live there for a long period of time and ensure the maintenance of the property.
It’s important to note that these types of contracts typically last at least one year. This ensures that the property doesn’t remain empty for long periods of time, unlike apartments used for tourist purposes. It also guarantees stable income, with fixed monthly payments from the landlord.
2. Higher profitability of investment in the short and long term
Cleaning and repair costs are significantly reduced, and fixed costs such as water and electricity are the tenant’s responsibility, you can find the recorded session which is a financial advantage compared to vacation rentals.
For this reason, depending on the city and area where the new apartment is located , for tourist rentals to be as profitable as or more profitable than residential rentals, the property must be occupied between 50% and 60% of the days of the month, taking into account the average turnover of these properties.
Long-term rentals are more profitable because they don’t have to face management fees or payments related to the ongoing maintenance of the property . Similarly, the tenant usually covers the costs of utilities and utilities. There are also usually no rental management fees.
3. High occupancy rate
If you have a long-term tenant, you don’t have to worry about the occupancy rate. Plus, if you use digital platforms like Rentger, usa b2b list you can manage all communications with your tenants. This way, you won’t have to send reminders for late payments.
4. No tourist taxes are paid
Long-term apartment rentals are exempt from paying tourist taxes. This is typically the case for short-term rentals to tourists. Obviously, due to the current crisis, this type of service has decreased.
Instead, people can now opt for traditional rent, saving 20% and using it to pay for essentials, save money, or reduce their debt.
5. Payment reliability
If the owner of a small apartment has conducted a thorough tenant reliability assessment and clearly outlined all the necessary information in the lease clauses, they will have a reliable tenant who will pay on time and not be late.
Final considerations
Long-term rental of an entire home is particularly regulated by law. The advantage of this solution is that it provides stability in the income generated from the rental. Likewise, once the tenant moves in, there is very little management responsibility for the home, which gives you greater freedom.
It’s important to emphasize that, as a landlord, you have the right to rent out your apartment freely. However, a tenant cannot rent out your apartment without obtaining prior written authorization from the landlord, an essential formality for legally subletting the property.
Short-term rentals for tourism are becoming increasingly unpredictable. Furthermore, the COVID-19 outbreak and new regulations are causing more and more owners to return to offering long-term rentals instead of vacation rentals. So, don’t think twice. This is your chance to make the best real estate investment of your life!
Edifica Real Estate offers you the best apartment and office projects located in the best areas of Lima and other cities. If you’d like more information about any of our projects, please contact us and we’ll get back to you shortly .