Fort Myers receives more than four million visitors every year. As a property owner, this is great news for you.
Tourists need a place to stay on their vacation and your apartment could be the perfect place for them. However, before you set up your property for visitors, you need to know the pros and cons of short-term lease apartments.
There are many benefits that you'll experience when you lease month to month, but it's not without challenges.
We've put this guide together, so you're prepared when it comes time to lease out your apartment in Fort Myers.
Pro: Flexibility
One reason a lot of property owners choose to offer month-to-month leases or short-term leases is because of the flexibility.
Since there isn't a long-term contract, you're able to adjust your rental rates as the market changes.
For example, if there is a special event or concert that lots of people are traveling to, you can increase the price. If you know the weekend after the Fourth of July isn't busy, you can drop your rates since the demand is low.
This option allows you to ensure your property is competitive and in demand.
Con: Vacancy Challenges
A challenge you may face when you invest in short-term lease apartments is vacancy challenges. The turnover rate is much higher. If you don't prioritize filling vacancies quickly, you'll lower your profit margins.
To combat this problem, you'll want to spend some resources and time marketing your property to tourists and even locals in your community.
Pro: Higher Income Potential
One of the benefits of short-term leases is the potential for higher income.
Short-term leases tend to come with higher monthly rental rates. You can capitalize on the demand for flexibility and temporary housing.
You can generate more income over the entire year if you know how to price your property competitively.
Con: Higher Maintenance Costs
When you offer a short-term lease to your renters, you'll need to be prepared for the higher maintenance costs. Since tenants are coming in and out more frequently, there will be more wear and tear. Keeping your property in the best condition possible will ensure your profits are high.
You'll also need to restock and clean up after each renter leaves. You'll need to hire a team to help you maintain the property or you'll need to be available when the renters check out.
The Good and Bad: Short-Term Lease Apartments
Short-term lease apartments provide you with an incredible opportunity to grow your monthly income. However, with different types of leases, there are challenges and considerations that you need to be aware of.
The best thing you can do is weigh out the pros and cons listed above. Assess your risk tolerance, resources, and level of commitment.
A well-informed approach is key to running a successful short-term lease.
There's a reason PMI Gulf Property Solutions is part of a national property management franchise that has been in business for over two decades. Our team is ready and available to help you with all your short-term lease needs.
Get in touch with us today!
