Buy-to-let investors deciding between short or long-term letting should carefully consider the pros and cons of each option, suggests Adrian Goslett, regional director and chief executive of RE/MAX of Southern Africa.
He offers the following pros for both options:
Long-term letting:
- A known or fixed rental income is generated monthly, so exact profit/monthly returns can be calculated.
- Less wear and tear as tenants are not in and out frequently.
- Annual increase of around 10% (market dependent).
- Your home is being maintained as there is always someone on site giving feedback.
- Lower risk of break-ins as your property will not be standing empty for lengthy periods of time.
Short-term letting on platforms like Airbnb:
◆ Payment is guaranteed.
◆ The platform has proven its credibility during Covid-19 by refunding deposits.
◆ Your property is shown to people all over the world.
◆ The reviews safeguard both travellers and hosts.
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