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When you’re picking your strategy for a particular property, you’re going to be offering some kind of mix of three different types of occupancy model over the course of calendar year. You’re going to want to pick between these two to maximise the return from that property. You would be more of an active manager than an existing landlord might be. And that was going to was going to let you make the arbitrage difference between what the long term rental is going to be versus what you can achieve. So the three models that you’re going to throw into the occupancy mix are short term, medium term and long term. And again, these have different pros and cons and different reasoning and thinking behind them, short term pros. First, you can make very good fees on short term property rentals. You can make up to 24 percent above what you can make on a long term rental equivalent for the same property. This is because obviously you’re renting it out on a weekly, monthly basis on Airbnb and be in place like that. And there’s going to be greater demand at different points in the year. People are going to be willing to pay more money in certain seasons for certain properties. And they are and others. The other pro is there’s very low cost of customer acquisition for this, you know. It doesn’t take much for you to put this property on eBay and be in the various platforms. You don’t they don’t take that greater fee. It’s relatively straightforward to find these people who are going to fill out the short term, the cons. You can have a greater maintenance burden. The more people that cycle through, the more things that are likely to go wrong, things that you’re going to need to fix or. If something has gone wrong, you’re going to need to fix it quite quickly. There’s also much greater regulation in this market. So you’re going to be somewhat limited in terms of how and when you can offer this short term model. The other con is very seasonal, obviously, particularly short term. Let’s tend to mostly go to tourists. So tourist season are very defined points of the air for different places. You actually are going to be able to achieve the maximum income at certain times of the year. Again, another point similar to the maintenance, you can have very high turnover and rotation. People are gonna be coming in and out all the time. There’s going to be a higher customer contact burden, customer support burden. People are gonna be coming in off a flight, tired, wondering where the keys are having issues and cleaning and turning over of furnishings and things like that. It’s going to have to occur far more frequently the kind of places where a short term property is going to be placed. The marketplaces are there, things like air, BMB, Expedia, booking, dot com, those kind of platforms for medium term model for the medium term model. Pros are again higher fees than you get just from normal stated long term rents, up to 14 percent above that as a baseline. Another one is medium term. Let’s are good filler. So you’ve got to maximise your short term less during peak seasons. You want to have some long term in there for a bit of stability and regularity of income and in the gaps in between you flat out as medium term. So it’s a good flexible model to use to fill in the gaps. On the downside, you have issues with tenant misuse, possibly, particularly if it’s a student. Let’s. This is going to be an issue. Students have historically treated places not quite as well, shall we say, as other tenant sites. So be aware there’s going to be the chance of having to replace furniture. Maybe a high maintenance burden. But you can do with another cone. There’s a smaller audience for this kind of model. You know, there are more tourists looking for places on air BMB. There are more families looking for homes on the longer term side of things. Medium term, you’re talking about corporate culture rental. It’s a smaller market, smaller audience, the kind of platforms where you’re gonna want to advertise your medium term, less home spot spota home. And again, LBB. For long term rents, for long term models, the big pro here is stability. You are guaranteed pretty much a monthly income for a long period of time. As long as you pick your tenants. Well, we do background cheques, etc.. Then you’ve got that regularity and stability of income. Another pro, you will have a much lower maintenance burden with a long term let. It will turn over phylis frequency frequently. So you’re gonna be in there fixing things as necessary at the turnover point and then you probably won’t need to go back for quite a long while, maybe even until the next turnover. Things that go wrong. It’s the same tenants are in their home. They’re going to treat it better. It’s going to be better for maintenance on the con side. Your you. You have the least sort of possibility of making the best face because you’re trading up that risk reward of evil. The long term stability of the contract that you’ve signed so you can necessarily charge less for it. Another possible downside is the negative impacts, the availability of that property. If it’s now down in the long term, let then you it’s not available for. And the other potentially more lucrative. Less. The model sorry, the platforms that are available for advertising long term lets the places where you’ll be wanting to place these kind of properties. Rightmove, Zoopla, the classic. I want to buy or rent a home kind of online platforms.
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