Aside from being a great way to invest in real estate, owning and operating rental properties is also a great way to make money. There are essentially two types of rental properties: short-term and long-term. Short-term rentals are typically rented monthly, weekly, or daily. Some examples of these include vacation rentals and houses for hackers. A long-term rental generally is a residential property rented to a tenant for a fixed annual rent. Usually, this type of lease is for 12 months.
About Long-Term Rentals
One of the most critical factors that a property owner should consider when investing in long-term rentals is the predictability of their income. Having a consistent income stream helps keep the costs of running the property low and allows the owner to plan for the future.