The Long-Term Advantage: 6 Reasons 12-Month Leases Outperform Short-Term Rentals

As a property owner, you’re constantly weighing the pros and cons of different rental strategies. The rise of vacation rentals and short-term leasing options may seem enticing, but for long-term financial stability and peace of mind, 12-month leases are often the better option. Here’s why MGR Property Management recommends 12-month leases over vacation rentals or 3-to-6-month leases for our clients.

  1. Consistent Income Stream
With a 12-month lease, property owners enjoy a reliable, steady flow of income throughout the year. You won’t have to worry about fluctuating demand like you would with vacation rentals, which can be highly seasonal. This consistency helps you plan better and minimizes the risk of vacancy periods that can severely cut into your profits. Shorter leases, like 3 or 6 months, offer less security. Tenants come and go more frequently, which increases the likelihood of turnover and vacancy.
  1. Lower Turnover Costs
Every time a tenant leaves, there are turnover costs: cleaning, repairs, advertising, and the administrative tasks involved in screening and signing a new lease. With short-term rentals or 6-month leases, turnover happens more frequently, leading to higher expenses and increased effort on your part. A 12-month lease, by contrast, minimizes tenant turnover and gives you more time between tenants to maintain your property with fewer disruptions. The result? Less wear and tear, and fewer costs associated with filling vacancies.
  1. Less Maintenance and Wear
Vacation rentals are notorious for experiencing higher wear and tear due to the transient nature of guests. When people are only staying for a short time, they often don't treat the property with the same level of care as long-term tenants. Frequent guest turnover means more maintenance, cleaning, and potential repairs. With 12-month leases, tenants are more likely to treat the property as their home, fostering a sense of responsibility and care. This results in fewer unexpected maintenance issues and a property that stays in better condition over time.
  1. Stable Tenant Relationships
Building relationships with tenants is easier with longer leases. With a 12-month lease, both you and the tenant invest in a long-term arrangement, which can lead to more open communication and faster resolutions to issues. Tenants who stay for an extended period are more likely to take pride in their living space, pay rent on time, and follow community rules. In contrast, short-term rentals or frequent lease renewals can create a more transactional relationship, with less incentive for tenants to engage in positive, long-term behaviors that benefit both the property and owner.
  1. Predictable Property Management Costs
Managing vacation rentals or short-term leases often requires a higher level of involvement. There’s more frequent turnover, regular cleanings, and a constant need for marketing to fill vacancies. This means either spending more of your own time managing the property or paying higher fees to a property management company. A 12-month lease, on the other hand, allows for more predictable property management costs. You won’t need to constantly market your property or arrange for frequent cleanings, and the overall administrative burden is significantly reduced.
  1. Easier to Attract Quality Tenants
Vacation rentals and short-term leases may attract a wide variety of tenants, but they don’t always guarantee the highest quality tenants. Screening processes for shorter stays are often less rigorous, increasing the risk of renting to people who may not respect your property. With 12-month leases, MGR Property Management implements thorough tenant screening processes to ensure we place responsible, stable tenants. Long-term tenants are more likely to have steady employment, good credit, and a desire to maintain a positive rental history.   Conclusion: The Long-Term Advantage At MGR Property Management, we know that maximizing the value of your property means finding the right balance between profitability and sustainability. While vacation rentals and short-term leases may seem tempting, they often come with hidden risks and expenses that can erode your profits and create unnecessary stress. 12-month leases provide property owners with stability, reduced maintenance, and lower turnover costs, all while fostering strong tenant relationships. By choosing this option, you’re ensuring a more predictable and profitable rental experience for the long run.   Interested in exploring how MGR Property Management can help you maximize the benefits of long-term leasing? Contact us today, and let’s get started!

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MGR Property Management
3800 E Concours St Suite 100 Ontario, CA 91764
(909) 581-6600
DRE License #: 01841920

MGR Real Estate
3800 E Concours St Suite 350 Ontario, CA 91764
(909) 581-6600
DRE License #: 01841921