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Short VS
Long Term Lease


Differences between Short- & Long-Term Lease
In order for someone to decide on how they will utilize their property either with a short-term lease or with a long-term lease, they should understand well the differences between the two types of leases.

It is indeed difficult for someone to decide between them, and every situation is unique. There are too many factors that someone should take into consideration.

The three basic differences can be summed up to:


1. Profit: When an apartment is rented for a week can have a bigger profit than the one it would have if it was rented for one month in a long-term lease. There are many guests that need an accommodation for some days in the same way as if they stayed in a hotel. This means that the owner sets the price according to the period, the demand and the competition.

Basically, this is the way that an Airbnb management functions. As the studies show, the guests are usually willing to spend the same amount of money to stay in a comfortable apartment with more services instead of a hotel. In the long term lease the owner knows their standard profit. However, this source of income will never result in a bigger profit that what they have agreed on.

2. Damages: The guests that rent an apartment for a few days or a couple of weeks, are usually on vacation. They will spend little time in the apartment as they will mostly wander around discovering the place. Consequently, the damage is less comparing to a long-term lease.

Moreover, the short-term renters tend to keep the apartment in a good shape. This happens mostly out of respect to the owner, as they know that this is their home, as well as because they know that they get reviewed after their departure. Moreover, on Airbnb management there is a damage policy that the guests will have to pay of any damages are caused.

3. Flexibility: If an owner chooses the short-term lease, they will be able to both rent their property and get a profit out of it and stay in their apartment whenever they wish to.

The flexibility that the short-term lease offers compared to the long-term lease is the basic reason why the owners choose the first. Through Airbnb management there is total flexibility on the period that the owner will decide to have his property available for bookings.

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