Long term rentals vs. holiday homes: Home & Co
Have you been debating whether to rent your property long-term or for short-term holiday letting? A Wanaka-based property management company has three compelling reasons why you should choose the former.
The lack of long-term houses for tenants is a hot topic. In a bid to address this, councils including Queenstown Lakes District Council have changed legislation to discourage property owners renting short term by having higher rates for properties let as holiday homes and requiring owners to obtain resource consent to operate holiday home letting. This comes at a significant cost to property owners.
Colleen Topping, director and owner of Home & Co Property Management in Wanaka says, “I have seen many property owners switch from holiday home rentals to long term rentals because of the erratic cash flow that accompanies holiday letting.
It is either feast or famine. Great if your house was booked for Christmas / New Year, A&P Show weekend and Warbirds Over Wanaka but what of the in-between times? Long term rentals translate to an even cash flow. Once your property is rented you are almost guaranteed of a steady income.”
Thirdly, with holiday homes, do you know who made the booking? Is it really Mrs X from an upmarket suburb or is it for her son and his delightful party friends? There is a lack of guest scrutiny on many booking sites. Holiday homeowners have complained about a lack of accountability when things get damaged or go missing and the costs can mount.
In summary, the three “Cs” – council, cashflow and credibility favour choosing long term rentals over holiday letting.
For more information about the Wanaka market, contact Home & Co for free advice and a free-market rent appraisal.
