Over the past few years short-term rentals have risen in popularity and demand. Thanks in large part to sites like Airbnb and booking.com, a growing number of travellers are opting for short-term rentals over hotels due to the comfort and privacy provided by this accommodation option. This sort of rental is typically classified as anything that lasts under a month.
In South Africa this trend has gained particular traction along the Atlantic Seaboard. Now, with more flights back in circulation and pandemic restrictions largely lifted, people from around the world are once again descending on this part of the world to enjoy a warm break over the festive season.
If you’re a property owner or landlord considering short-term leasing, here are seven reasons why it’s a good idea.
Flexibility
One of the biggest advantages of short-term leasing is the flexibility it affords. The duration of occupancy makes it easier to choose when you want access to your property, either to do maintenance or renovations, as well as for times when you choose to block out dates to stay there yourself.
“The short-term nature of the arrangement also makes it easier for you to assess the performance of the market. This flexibility allows you to decide if you suddenly want to sell the property due to good moment in the market without having to wait for a lease to come to an end,” says Van Embden.
Greater potential returns
Short-term rentals allow owners to charge nightly rates. As a result, you can earn more than you would for a long-term rental and adjust rates based on demand, allowing you to maximise on earnings during busy holiday periods or events that bring people to town. During busy seasons it’s possible to earn as much on a nightly rate as you would for an entire week in the off-season.
Length of season
Van Embden explains that, in South Africa we’re blessed with a long summer season, which also happens to fall over Christmas and New Year. This makes the coast a very attractive holiday destination for both locals and travellers abroad. And because the summer weather extends well into the year, holidaymakers tend to travel through the peak season (15 December – 15 January) and into what is still considered the high season that lasts until end of April.
Greater capital accumulation
A short-term rental that is well managed offers owners a higher potential capital appreciation over time. This is because short-term leasing allows for a property to be more regularly monitored and maintained, helping to reduce the risk of damage as well as the faster detection of problems and worsening of an issue over time. The major advantage to this is that the property tends to be kept in a showroom-worthy condition, which is not always the case with long-term rentals.
Tax benefit
If you choose to rent out your property as a business, it’s possible to deduct all related expenses. This means everything from rates to repairs, maintenance, insurance and even monthly interest on your bond repayments can be included as potential tax write-offs.
Avoid bad tenants
One of the big benefits of short-term rentals is owners are spared the experience of tenants that overstay their welcome. A long-term lease can often come with a tenant who neglects the property or fails to pay rent — a problem you can avoid with short-term renters.
Convenience
Short-term rental management companies make it easy to lease out a property with relative ease. For a fee, a good company will ensure guests are checked in and the property is well maintained with minimal effort on your part.
Blok’s modern apartments, always situated within in-demand areas, are designed to appeal to the short-term market. With their in-house leasing consultation services on offer, it’s the perfect investment for buyers interested in short-term rental properties.
