When you own a long-term rental, you want to make sure that you have the best tenants, that they’re happy, and that your property and its value are maintained. One of the easiest ways to do all of those things is to use a trusted property manager.
I provide this service on my own, the property will not be managed by RE/MAX, although the property will enjoy the benefit of exposure for rentals on the company marketing channels.
I do not provide short-term management of properties but can refer your property to other managers in the area.
Advantages of long-term rental properties
There are some clear advantages to investing in properties that are rented to tenants on a long-term basis. This generally means that tenants sign an annual lease, but long-term rentals can be month-to-month as well. Here are some of the biggest advantages:
Consistent income: Because the same tenants occupy the property for longer periods of time, long-term rentals tend to produce consistent rental income. And there’s no need to worry about busy seasons versus slower times if your tenants are living in the property.
Tenant Screening: Through our application process, we’re able to get important background and credit information on potential tenants to verify that they’re going to treat your property well, be respectful of regulations on the property, and, of course, pay you on time. This is a piece of property that you own and value both emotionally and monetarily. You want to be sure you’re only letting trustworthy individuals into it.
Easier to manage: Whether you choose to manage the property yourself or hire a property manager, long-term rentals require less time. You don’t have to advertise the property as frequently, handle constant tenant turnover, or make sure the property is ready to rent. If you don’t want your real estate investment to be a job, or you don’t want to pay a fortune in property management fees, you’ll probably be better off with a long-term rental property.
Tenant-paid utilities: At a minimum, long-term tenants usually pay their own electric bill. Most landlords pass the cost of water along as well. Short-term renters don’t have to worry about paying these utilities and tend not to worry too much about conserving electricity and water.
Fewer maintenance concerns: Tenants don’t take care of homes the way owners do. However, they tend to handle some of the maintenance issues that are the owner’s responsibility in short-term rentals, such as cleaning, stocking toilet paper and other essentials, and sometimes even yard maintenance.
Cheaper property management: Because they have less turnover and ongoing maintenance and marketing requirements, hiring a property manager is much cheaper with a long-term rental. Our rate for long-term property management is 15% of the collected rent.
Room Tax: Whenever you rent your property on a short-term basis (less than 90 consecutive days), you must charge your guests a room occupancy tax equal to 7% of the room’s rate and submit it to the Puerto Rico Tourism Company (PRTC). As part of the requirements of Act 272, you must register as an innkeeper and request and innkeeper ID number from PRTC. You can obtain the registration at the Puerto Rico Tourism Company’s Tax Division office located in Old San Juan. Renting long term does not require this additional tax or monthly paperwork.