Pros and Cons of Short term vs Long term Rentals

Characteristics of Short Term Vs Long Term Rentals

August 27th, 2024

There have been millions of stories in the bucket of a tenant renting for a long period in different places. There is often a pattern that they suggest to the newbies who move out for renting to make their living not just pocket-friendly but smart as well. And that is short term rentals, at times, over long-term rentals. Well, these terminologies are commonly used when renting an apartment in Canada or any other corner of the world.

It is known to all that while we rent a house, we get into a contract with our homeowners for an expected period of stay with mutual terms and conditions. But the importance of these two umbrellas does not end there.

Let us put some light on to inform you about potential tenant moves to decide on a perfect vacation rental investment.

Table of Contents

Meaning of Short-Term Rentals/Vacation Rentals

A short term rental is a contract that says the investor has authority on the property for a consecutive twenty-eight days with a decided payment structure. For this, the tenants are obliged to register with the city by an operator who is responsible for receiving a remit amount of 4% as Municipal Accommodation Tax (MAT).

In this pattern of renting a house, the obvious service is (B&B) which means bed and breakfast. Rest all the amenities will be provided at additional cost, excluding motels and hotels.

Meaning of Long Term Rentals

Another pattern of renting a property, long term rentals provide a long-stay accommodation for approximately 30 days-6 months. This might get extended by choice if the homeowner or the property manager accepts the tenant’s request.

This way of renting a house is quite often in practice that lately provides an option with furnished, semi-furnished or unfurnished apartments. As per the market observation, this is a widely adopted approach by people with no vocational rental motives but have moved to a place due to jobs or family concerns.

Pros and Cons of Short Term Rentals

While both rental techniques have some benefits, they also possess some competitive disadvantages. Let us dig into the topic to understand the short term methods of renting.

Categories	Pros	Cons
Maximum Span of Contract	Considering vacation rentals, it allows a person to rent a property for 28 days maximum.	Short-term vacations offer restrictive renting periods such as for a day, a week or a month.
Maintenance Status	Vacation rental properties have a high rate of regular maintenance	Tenant might have to compromise on the absence of some amenities.
Investment Budget	Low cost for a short-term stay purpose	Short-term rentals need a bigger recurring cost for owners,
Operation Rules	Vacation rentals work on local rules of operation.	No credibility on the services mentioned from the owner’s side.
Advertisement Methods	Property on short-term leases often practices advertising to fill in upcoming days for constant profit.	Might increase the running cost of business for owners.

Pros and Cons of Long-Term Rentals

Here are the listed favours and flaws of tenants and owners who choose to operate in long-term rental method:

Categories	Pros	Cons
Maximum Span of Contract	Long-term rentals extend the offer for 6 months or more if both parties agree.	Tenants might have to lose on their security amount if the property gets vacant before the contract expires.
Maintenance Status	Additional services and amenities can be demanded from the tenant’s side	Long-term rentals that face struggling for the same.
Investment Budget	Long-term rentals offer fixed rental expenses monthly or for a year or more.	No additional earnings for owners for a discussed period of stay
Operation Rules	Long-term rentals are secured by fundamental rules in probation.	Owners can make certain major changes in the contract
Advertisement Methods	No hyped advertisement is done for a long-term property	Owners might face the struggle to fill the property in a short span

Who Can Apply For Short Term vs Long Term Rentals

There are no restrictions on availing any of the leasing property structures. There can be a local tenant and also an international one. The law of Canada says no pros and cons of vacation rental homes have to deal with the person’s nationality. The simple phenomenon says that in case of vacation rentals, there is no contract involved between both parties.

Although, as a long term rentals, a tenant and the landlord will have to sign an agreement with settlement over security and the tenure of stay. Certain conditions apply to the tenant in a long-term rental contract, such as availing expenses of regular needs, electricity bills, water bills, and so on. Unlike short-term leasing, beds and food are basic facilities offered to the guest. However, some documents are required in both the lease methods for safety measures.

Duties of the Landlord For Short Term Rentals

Below are some expected obligations on the owners in short term leasing that a tenant must be aware of and vice versa:

- In short-term leasing, landlords have to take care of all requirements such as replacement of fused bulbs, replacing a bedsheet, cleaning the house, and other flaws that cause inconvenience to the guests.
- In case of any quick requirement on amenities, owners should be ready with the additions.
- There should be no disturbance of sudden changes in the contract from the owner’s side as it is a short-term stay.

Duties of The Landlord For Long Term Rentals

Have a quick glance at the long-term rental obligations that an owner should adhere to

- A landlord of long term rentals has the responsibility to maintain the property at their costs, such as leakage of a pipe, washroom repairs, painting of the house, or any permanent defaults found by the tenant. Requirements like water bills, bulbs, and cleaning do not come under the owner’s responsibility.
- A house owner leasing their property on a long-term basis, has to build a contract with mutual transparency between them and the tenant for a desirable time. It should also include payment methods, ratios, other expenses (if any), and terms and conditions.
- Landlord cannot dismiss the contract without prior informing their tenants.

Note: Leasing property landlords can have a property manager tackle their property maintenance or payment concerns. They might connect to the tenants living for more than 6 months directly or through a property manager. The tenants can have online sites where those properties are listed with active reachability only with the property managers in case of no communication with the owner is offered.

Amenities Offered in a Vacation Rentals Versus Long-term Rentals

The services of vacation rentals and long-term rentals differ greatly. There are a few perks that a short term tenant can enjoy, which is deprived of a long-term tenant. What can be in the bucket for you in case you choose one of the respective rentals are discussed below:

Vacation Rental Houses
- The facility of free-electricity consumption, room cleaning, furniture, refrigerator, internet connection, air conditioner (optional), can be expected on decided expenses.
- Security-checks and free parking are additional benefits offered for such tenants.
- Speed elevators are another amenity that can be expected for this leasing form.
- No maintenance cost is added to the expenses decided for a short term rental.
- Small repairs and requirements such as tubelights, bedsheets, curtains are provided from the landlord’s side.
Long-term Rental Houses
- The amenities are restricted to what you have in your contract. In case you select non-furnished apartments, furniture is not included. Whereas, in furnished apartments, everything will be from the landlord’s side, from bed to bucket.
- Security check-ins via CCTV on the campus are under the property managers. Parking facilities might be free as per the property site.
- Amenities like speed elevators, in-house retail outlets, and modular kitchens might be added for free to the list.
- No recurring maintenance such as room cleaning, water supply, free-electricity can be availed in long-term rental houses.
- Small repairs and requisites such as replacing a tube light, changing curtains/bedsheets, and more can be under tenant’s personal expenses.

End Thoughts

Renting has been so normalized that it has become a second stop for making money. People own property and float that in the renting market with short term vs long term rentals leasing formula. This does not just fill the gaps of availing services to travellers who often switch their stay places. But also add an option for tenants to look for affordable properties as per their needs.

These structures have made hospitality a vast and dynamic business. It benefits not just the landlords to expand their business but also comforts the pocket of tenants who do not desire to stay for a longer period of time at a place or cannot make frequent reallocations. Hopefully, the inputs in this article can help you make a difference in both effectively. Have a happy stay!

You May Also Read :

Overview of Apartments For Rent in Toronto	Apartments For Rent in Toronto
Pros & Cons of Vacation Home Rentals	Vacation Home Rentals
About Buying Vacation Property	Buying Vacation Property
Choose Vacation Home Rental in Toronto	Vacation Home Rental in Toronto

Frequently Asked Question (FAQs)

What is the difference between a short-term and long-term rental?

A short-term rental has a leasing property for 28 days only at a max. Whereas long-term rental properties can extend beyond a month and go for years.

What is the meaning of short-term rental?

Short-term rentals, also known as vacation rental investments, are properties on lease on a daily, weekly or monthly basis.

Is short term rental a good idea?

Short-term rental investments suit travelers who choose to stay for a week or a month in a place. It also can be a good idea for professionals who must visit a place on a temporary call.

Why are short-term rentals so popular?

Short-term rentals provide more flexibility to switch from one property to another with amenities offered by the landlords’ themselves on a single cost budget. This has made vacation rentals widely popular.