There are many properties to rent in Gibraltar, both for the long term and for the short term. If you need assistance deciding whether short-term or long-term renting is best for your home, you're in good hands. Stay tuned as we discuss the benefits and drawbacks of both types of vacation rental strategies, as well as how you should market each one.
Long-term and short-term rentals
The most common way to invest in real estate is to own and operate a rental property, such as single-family homes or multifamily buildings. Rental property in residential real estate is frequently classified as either short-term or long-term:
- Short-term rental: This type of rental is typically done on a daily, weekly, or monthly basis. Vacation rental homes, a house hacker renting out a spare bedroom, and a single-family rental home with a month-to-month lease are all examples of short-term residential rentals.
- Long-term rental: A 12-month lease term at a fixed annual rent is typically rented to a tenant. Most residential leases are for a period of 12 months, though some local landlord-tenant laws may allow for leases of more than one year.
Short-term rentals advantages
- Potential for increased gross income. A short-term rental investor can easily adjust the rent price to meet the current market rate, allowing them to maximise their gross rental income. A short-term rental property may generate 2-3 times the amount of monthly rent as a long-term rental property, depending on local market demand and conditions.
- Easy to maintain. A short-term rental property may be easier to maintain because a tenant only stays for a limited time. When a tenant leaves, homes can be thoroughly cleaned and inspected for any needed maintenance issues before a new tenant arrives.
- Flexibility. Some investors provide a short-term rental agreement to keep their options open if they plan to sell. While another real estate investor may prefer to have a tenant in place, a buyer looking for a primary residence does not want to live in a home that is rented to a tenant.
Short-term rentals disadvantages
- Income stability is not guaranteed. While short-term rentals may promise higher gross rental income, there is always the risk that the home will be vacant for an extended period of time. When a property is rented long-term, however, it is much easier to predict how much rental income will be collected each month.
- Increased operating costs. Short-term rentals can require more maintenance, particularly if the tenant is using the rental as an alternative to a hotel room. A short-term rental property should be fully furnished and well-maintained, and it should be stocked with personal items such as sheets, towels, toilet paper, and cooking supplies on a regular basis.
- Utility costs. Typically, a tenant in a short-term rental expects the landlord to pay for utilities such as electricity, gas, water, trash, and even cable TV and internet service. While utility expenses may be included in the rent, for some real estate investors, all of these additional bills can become too much to manage.
Long-term rentals advantages
While it is ultimately up to the investor whether to have short-term or long-term rentals, long-term rentals do have some distinct advantages. Here are some benefits of investing in long-term rentals over short-term rentals:
- Consistent income. One of the main advantages of long-term rentals is that you know in advance what your monthly income is going to be. This is a nice feeling, especially for owners who have made a big investment or have a lot of other expenses to worry about. Besides, in most cases, the tenant is responsible for the extra cost of gas, water and light.
- Easier to manage. Whether you choose to manage it yourself or outsource it to a property management company, you soon find out that it takes less time than short-term rentals. You don't have to promote the property contact to maintain your turnover and make sure it is rental-ready. Fewer changes If you rent out your accommodation to guests on a long-term basis, you will soon find that you have to worry less about the administration of this, the key handover and promotion. As soon as the tenant has signed the contract, you only have to worry about these matters again when he/she leaves the accommodation.
Long-term rentals disadvantages
- Less flexibility. If you have rented your accommodation on a long-term basis, you cannot go to your own chalet at Christmas or to your seaside cottage in summer. You cannot ask your full-time tenant to leave for a weekend, of course. Especially for owners who have made an investment to enjoy it themselves, this is a major setback.
- Less control. With short-term rentals, you have the option of checking your accommodation after each stay to make sure everything is still in order and nothing is broken or damaged. With long-term rentals, however, this is more complicated. If you want to make an inspection visit to your accommodation for maintenance or safety reasons, for example, you need to announce this in advance and agree it with your tenant.
- Finding the right tenant. If you are going to rent to someone on a long-term basis, you want to make sure there is a match. The amount of time you spend vetting and checking references before drawing up a contract can just become a long process. And even then, you won't get any guarantees.
Long-term versus short-term rentals
Both long-term and short-term rentals have distinct advantages, and what is right for one investor may be completely wrong for another. Those who enjoy actively owning and managing real estate may find that investing in a short-term rental is the best option. Long-term rentals, on the other hand, maybe the best option for investors looking for a property that generates more predictable rental income and is easier to manage. Bentley Estate Management focuses on long-term properties to rent in Gibraltar.
Top 3 long-term properties to rent in Gibraltar
We have selected our 3 best long-term properties to rent in Gibraltar.
1. EuroCity - £3,200 per month Premium Two Bedroom Type L
This apartment is located on the 20th floor with an amazing panorama view is for rent in the EuroCity development-Carrara Tower, Gibraltar. The soft, white glow of Carrara marble has been prized like no other since ancient times for the feeling of luxury and the quality it evokes. It lends its name and sophistication to the first of three stunning towers at EuroCity. From the welcoming entrance hall to the crisp, fresh design style of the apartment interiors, Carrara is finished to the highest standards, with exceptional craftsmanship and attention to detail. More info about this apartment can be found here.
2. Eurotowers - £2,300 per month
Located on the 7th floor in the Eurotowers, Block 2, this high-floor, spacious, and airy three-bedroom apartment has the added benefit of a big kitchen, with an airy lounge area and balcony that could be the perfect home for you! Ideally located in the centre of the business district, the apartment is close to all restaurants, cafes, supermarkets, and the school district, making it a wonderful home for those who want easy access to everything Gibraltar has to offer. Residents also benefit from exclusive use of a roof-top pool with spectacular views of the rock (perfect for summer), as well as communal squash courts. Moreover, CCTV Cameras providing 24h security. More info about this apartment can be found here.
EuroCity - £1,950 per month
Bentley Estate Management are pleased to offer this 16th-floor One Bedroom Type F apartment for rent located in the EuroCity, Carrara tower! The Type F One Bedroom apartment is featuring an outstanding Rock with an internal space of 50 sqm and with a further 6 sqm of balcony. The flat comes with a parking space. More info about this apartment can be found here.