As an investment property owner, knowing that you have income arriving each and every month can be comforting. Nobody likes to carry empty properties – especially as this equates to negative financial consequences. With that in mind, is it better to encourage a short- or a long-term lease with your incoming tenants?
The answer to that question is “it depends.” That is because there can actually be pros and cons to each of these situations. However, depending on your particular goals – as well as the tenants that you approve – one may work better over the other.
For instance, there are a number of advantages of having tenants sign a long-term lease, such as predictability. In this case, if you’ve locked in a long-term lease with a tenant, you know that you will have an ongoing and predicable income that you can count on going forward. This also means that you won’t need to worry about cleaning the property or having to market it for new tenants anytime soon.
On the downside, though, you may have to accept a lower amount of monthly income in exchange for the tenant signing a longer-term lease. Also, if it turns out that the tenant is less than ideal, you may have to wait quite a while before they move on and can be replaced.
In any case, managing rental property can be a time-consuming endeavor – and because of that, it can take away time that you could be spending doing other things. If you’d like to delegate the day to day landlord tasks like property maintenance, rent collection, and other tenant management duties, then it may be time to consider hiring a property manager.
If you own investment property in Orlando and / or the surrounding area, and you’d like to learn more, then give us a call today.