The advantages of long-term rentals in Gibraltar
Gibraltar has always suffered from a shortage of rental properties. With the increase in rental demand, investors have been incentivized to increase their property portfolios, while, existing landlords have opted to retain their properties because of the solid rental returns and capital growth they have consistently provided.
Many times there is a question between renting the property for the long term or for a few days. It is often said that it is more profitable for the owner to rent the property for short periods of time, but long-term rental also has a number of advantages for both the owner and the tenant.
Long-term renting brings more stability
Having the property rented for a longer period of time brings great stability for both the tenant (they do not have to change residence as often) and the landlord (they are assured of a stable income over a longer period of time and also do not have to be changing tenants – with the risk of possible non-payments or potential problems that this entails – every few years).
However, in seasonal rentals the change of tenants is constant: the property is rented for short periods of time and there may even be times of the year when the property is empty (there are expenses but no income). This is especially the case in the rental of homes near the beach: basically, they are only rented during the summer season or vacations. The advantage of this type of rental is that the rents are considerably higher.
This type of rental brings more security and stability for both owner and tenant. On the other hand, the rents obtained through long-term rentals are usually lower than those of other lease formats (especially in the case of vacation rentals).
Advantages for the owners
On the one hand, having the same tenants for a long time is peace of mind for the owner, who does not have to worry about how they are, if they will take care of the house, or if they will pay the monthly payments because they are always the same ones. In addition, the owner does not have to be looking for new tenants every few months and this means that he/she spends more time selecting the tenants who will finally live in the house.
All this means that the owner is assured of the tenants’ income for a period of time, without worrying about having the house empty for some periods. Another advantage of the long-term rental is that the tenant will be in charge of paying the additional expenses such as electricity, water, Internet, etc.
Advantages for tenants
Long-term renting also has advantages for the tenants. They will be able to enjoy the house more freely, decorating it to their liking and making it feel like their own home. For many, living in a rented house for a period of time is the first step before buying a house to get used to independence or to living with a partner.
Greater freedom to enjoy the apartment
The tenant will be able to enjoy his home with greater freedom, because, in rentals that are not long-term, you are always inhibited when it comes to buying something new or making any modifications.
You will be able to enjoy privacy and comforts such as your own kitchen, etc…
If a good tenant reliability study has been carried out, the landlord has a solvent tenant, the tenant pays in time and form and it is avoided that for example, the tenant does not pay the last month’s rent so that the landlord collects from the deposit.
Maintenance of the property.
As there is a deposit, and as it is the usual place of residence, a long-term tenant usually takes care of the property and avoids certain unpleasant situations.
No tourist taxes are paid.
Medium and long-term rentals are exempt from tourist taxes.
High occupancy rate.
If you have a long-term tenant, you do not have to worry about the occupancy rate.
In this type of rental, you avoid the problems with neighbors that usually generate the rental of housing for tourist use.
Increase in profitability.
Although it can give the impression that in the tourist rent can be obtained more benefit, the reality is that when a reduction of the net yield exists for rent of habitual housing and not in the occasional one it does that in most of the cases it is more profitable the habitual rent on the tourist one when those incomes are declared.
Predictable income and expenses.
In long-term leases, the expenses and incomes are much more predictable than in tourist ones.
In general, in addition to the tax benefits, maintaining a fixed and simple recurring income tends to be more attractive to owners looking for long-term rentals. While tourist rentals are more unpredictable
Apartment for rent in Imperial Ocean Plaza, Gibraltar
CENTURY 21 GIBRALTAR is pleased to offer this beautifully furnished 3 bedroom 2 bathroom apartment in Ocean Village, one of the most sought-after areas in Gibraltar. Situated in Imperial Ocean Plaza, it has access to all amenities that the Village offers right on its doorstep, as well as access to the communal pools and tropical gardens of Ocean Village. There is an en-suite off the master bedroom as well as a family bathroom.
The views from the panoramic balcony take in both the Rock and the far-reaching views of Africa across the Mediterranean Sea. Available fully-furnished, long-term.
Contact CENTURY 21 GIBRALTAR‘s rental specialist, Francis Hormigo, today, he can assist you in English and Spanish. Click HERE for more information