Something to consider when thinking about purchasing an investment property is if you are going to short or long term rent the property. There really is no black and white answer when considering this, and your own personal circumstances come into the equation when making this decision.
If you want to holiday in the property a great deal during the year, then holiday letting the property is the obvious choice. I have worked with a lot of investors who only want to use the property once or twice a year, and are happy to do permanent 3-6 month leases in between, so this can be something to consider.
The wear and tear the property has can be very different between the type of letting you do. A permanent tenant signs a lease and an entry condition report, highlighting the way the property was handed to them and ensuring the property is returned in the same condition. In my experience, holiday renting a property (especially a family friendly property) does come with a lot more wear and tear, and owners find themselves having to replace furniture items and spend more to maintain the condition of the property.
The investment return is hard to calculate between permanent and holiday letting. With permanent letting you know the locked in return the property is going to have for the entirety of the lease – some people prefer this. Holiday letting can seem like it will have a higher return, however this is not guaranteed and vacancy rates are always changing.
There are a lot of different factors that influence the best way forward for your property. I am happy to offer my experience and advise to anyone trying to decide what type of leasing suits them and their property best.
