Long Term Vs. Short Term Vacation Rentals in Davenport, Florida

Which one is a better investment? That depends on what you consider a good investment. I think long term rentals are a better monetary investment. While short term rentals are a better investment on your vacation fun.

People from all over the world buy vacation rental homes in Davenport, Florida for various reasons. Those reasons could be for monetary gain, the freezing cold weather in other parts of the world, or people just really want a place to get away. As I’m writing this, it’s 70 degrees and sunny blue skies outside. Crystal clear skies all that way, that’s Florida for you.

I can’t say I blame someone for wanting to move here and get away from the chill for a while. No matter what your reasons for buying are, and no matter what your goals are, either way you’re making a good investment on your future.

So let’s break down long term vs. short term vacation rentals in Davenport, Florida and see which one is right for you.

Long term rentals:

Here are the pros...

1) You’ll likely get a better cash return on your investment.

2) You have limited overhead. You don’t have to worry about trying to rent out the property every week.

3) You’ve got a security deposit in case someone damages the property.

4) If you have a mortgage on the property, essentially, a renter is paying your mortgage for you (it doesn’t get any better than someone else paying for your house. Like they say, free is the best price there is).

5) And best of all, housing prices are going to rise in the next 5 years, and by the time you’re ready to sell, the property will be worth more than it is now.

So what are the cons...

1) You will not have use of the property during your holiday and summer vacations.

2) I can’t think of any other cons. LOL

Short term rentals:

The pros on short term rental are…

1) You’ve got the ability to use the property anytime you want to vacation (And That’s A Big Pro).

2) Your property will likely be closer to the attractions.

The cons are…

1) You will not receive as large of a return on your investment (monetarily).

2) If you have a mortgage, it is very likely that you will not even cover your costs.

3) You’ll probably be lucky to rent out the property for 25 weeks of the year. There is more overhead because the property is being run almost as if it were a hotel.

4) More time and effort will be necessary on your part to keep the home rented.

I’ll try to be fair and balanced with this assessment. If you’re looking for a monetary investment with a good return, long term rentals make more sense. If you’re looking to use a property as a vacation home or for holiday rentals, a few times a year, a short term vacation rental home in Davenport, Florida may be the way to go.

No matter what property you buy, or how you use it, you’ll still wake up to beautiful sunrises in sunny Central Florida.

By the way, that’s my beautiful wife with her fishing buddy Sebastian yesterday morning at sunrise.

Disclaimer: All statements within this post are my opinion (but they are good ones).