One of the best ways to gain financial freedom is by investing your money in assets that can, in turn, earn you a lot more money than what you spent to get them in the first place. More often than not, we can have a fantastic money-earning opportunity with immediate access and this can be from a property you’re not currently using as a living space. One of the best ways to utilise earning money from these properties is by opening them up to short-term letting on websites such as Airbnb. If you end up purchasing property in a very desirable location, you can easily earn your money back and move within a matter of years and it will pay for itself.
However, the responsibility of managing and letting out your property can sometimes rival both the hours and mental strain a full-time job can entail, sometimes even more than a full-time job! It definitely is not for everyone. Fortunately, there are now services available which can completely take over the running, onboarding, acquisition and marketing of your property and today I will be sharing some key insights into a great service I have come across which is Pass the Keys.
What is Pass the Keys?
Pass the Keys are a property management company that specialises in the short-letting market that was founded recently in 2015.
What's the difference between short-term letting and long-term letting?
Short-term letting will have a duration that will generally last no longer than a year. Long-term letting on the other end will be for any letting that extends beyond one year. There are pros and cons for both of these forms of letting so if you're considering letting out your property, it's important you do the research to make sure you understand which term will best suit your needs and bring in the most profit for you.
What are the advantages of short-term letting?
Short-term letting can be very advantageous for earning extra income as it allows you to maximise the use of your vacant property, which would otherwise be earning you nothing whilst it’s not being used. You also have the flexibility of being able to switch tenants with far more easily than with long-term letting arrangements too.
You also have a very high-profit margin with short-term letting compared to long-term, especially if you're in a prime location. During peak times of the year, when you have an influx of visitors to your area, you have the option to increase your rates whereas, with long-term letting, your rates will be fixed throughout the year.
Who is short-term letting best suited for?
Short-term letting works fantastic for anyone who has property is a very desirable area, i.e. the city centre as previously mentioned, you can really capitalize on this during peak visiting months of the year. It is also amazing for anyone who may travel throughout the year and would be interested in renting out their house/apartment for a few months of the year whilst they're away.
What does Pass the Keys offer?
Pass the Keys will completely manage your property on your behalf. They will list your property on short letting sites such as Airbnb, Booking.com and find guests (tenants), check them in, check them out and keep your property cleaned to a high standard. It is a fantastic option for anyone who wants the financial benefit of renting our property without the stress of managing it themselves. Pass the Keys payment works via taking a percentage of the total rent price plus VAT. Currently (at the time of writing this post) it starts from 14% of your rental income.
If you would like to look further into the services Pass the Keys offer and see if your property is eligible, just check out this link here for more information. On their website, you can get an instant quote on how much you could earn from your property based on the location and size.
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