A long term rental is typically rented out for a long period of months, usually more than a year. In addition, depending upon the owner, the rental unit may come fully furnished or with no furniture at all. The owner can also pick the day and time of day that the tenant is available, rather than requiring the tenant to call and check in at a certain time. So while a traditional long term lease would have required you to pick a day and time when you would be available to rent the property, a long term rental agreement allows for flexibility. Here are some tips to help you find a quality long term rental. You can get more information about rent apartment phuket.
To ensure that you get the best value for your money, it is best to choose your location carefully. While large cities have many options for long term rentals, such as high-end office complexes, many rural areas may not have the amenities or entertainment choices that urban areas boast. If you prefer to live where there is plenty to do, consider a short term rental, instead. You can still get good value for your money and still enjoy the convenience of having your own home away from home. On the other hand, if you like to save money by living closer to work, a long term rental will save you money on housing costs.
A long term rental strategy is most effective when you are buying an investment property rather than purchasing a new home. Because a long term rental strategy is less expensive than buying, it makes sense to purchase an investment property when you are ready to sell your own home. By choosing a rental strategy when you are ready to move on from your own investment property, you ensure that you will not lose money on the purchase.
Before you sign a lease agreement with a new tenant, make sure that the property has the appropriate amount of vacancies. Find out how long the last five tenants have been gone before signing a long term rental strategy. If the occupancy rate is significantly lower than your preferred rental criteria, you may want to try to find a tenant who is more compatible with your lifestyle.
Another important consideration when you are planning your long term rentals is your potential monthly income and expenses. Will you be able to cover these expenses on a consistent cash flow basis each month? A consistent cash flow means that you are able to pay all of your expenses, including your utilities, taxes, insurance, maintenance, and common expenses without experiencing cash shortages each month. It is important that you have a cash reserve for unexpected events or long-term disruptions in your business, but you must plan for both.
The final consideration is your prospective tenant’s credit history. Will they be able to meet your long term rental obligations on a consistent cash flow basis? High payments on utility bills, maintenance, or any other common expenses can create a cash shortage in the beginning of your relationship, and can be very difficult to resolve. If you have concerns about the income history of your potential tenant, you may want to consider paying for some of their rent in advance and establishing a trial period. When you determine if this individual will be a consistent cash flow provider, you can then offer them a longer-term lease. Not only will this help you maintain your property longer, it can also help you find a new long-term tenant for when the time comes.