Long Term Lease vs Short Term Rentals

A Guide for Homeowners in Omaha

If you’re a homeowner in Omaha contemplating renting out your property, one of the initial choices you’ll encounter is whether to pursue a long-term lease or explore short-term rentals such as VRBO and Airbnb. In this guide, we’ll explore the disparities between long-term and short-term rentals and underscore the advantages of short-term rentals for homeowners in Omaha.

Long-Term Lease

  • Stability & Predictability

    Long-term leases typically offer stability and predictability for both landlords and tenants. With a fixed-term lease agreement, landlords can count on steady rental income and tenants can enjoy the security of knowing they have a place to call home for an extended period.

  • Reduce Turnover

    Long-term leases often result in reduced turnover compared to short-term rentals. Since tenants commit to staying for an extended period, landlords don’t have to worry about frequent vacancies or the hassle of finding new tenants.

  • Less Maintenance

    With long-term rentals, landlords may experience less frequent turnover and therefore less maintenance between tenants. Tenants typically take on more responsibility for minor maintenance tasks, reducing the landlord’s workload.

Short-Term Lease

  • Flexibility & Control

    Short-term rentals offer homeowners greater flexibility and control over their property. Homeowners can choose when to rent out their property, for how long, and at what price. This flexibility allows homeowners to maximize rental income and accommodate their own schedules and preferences.

  • Higher Rental Income Potential

    Short-term rentals often yield higher rental income potential compared to long-term leases. By renting out their property on platforms like VRBO and Airbnb, homeowners can charge premium rates for short stays, especially during peak tourist seasons or special events.

  • Property Use

    Short-term rentals allow homeowners to use their property for personal use when it’s not rented out to guests. This means homeowners can enjoy their property for vacations, weekends, or whenever they choose, without being tied down by long-term lease agreements.

  • Tax Benefits

    Homeowners may also benefit from certain tax advantages with short-term rentals. Depending on local regulations and tax laws, homeowners may be able to deduct expenses related to their rental property, such as mortgage interest, property taxes, maintenance costs, and depreciation.

  • Opportunity for Furnished Rentals

    Short-term rentals are often furnished, providing an additional income stream for homeowners. Furnished rentals appeal to travelers who prefer the convenience of a fully equipped home away from home, and they can command higher rental rates compared to unfurnished properties.

While long-term leases offer stability and reduced turnover, short-term rentals provide homeowners with greater flexibility, higher rental income potential, and the opportunity for personal use of their property. By renting out their property on platforms like VRBO and Airbnb, homeowners in Omaha can tap into the lucrative short-term rental market and enjoy the benefits of owning a vacation rental property. Whether you’re looking for steady income or the ability to maximize rental revenue, short-term rentals offer a compelling option for homeowners in Omaha.