If you are considering buying a property to earn a rental income, you need to consider what type of rental will suit your needs.
Short-term
With short-term lets the pros are that it is easy to start and the revenue could be fantastic. Whenever you want to holiday yourself, you don’t book it our over your holiday time. Short-term rentals are usually also paid up front, but there are many rules and regulations to deal with when it comes to short-term letting. The income is not always stable and then there’s the maintenance. You will be in charge of the bills and there is very little to protect you from serious damage caused by guests. However, getting a good short-term rental agent, is worth the cost.
Long-term
Long-term rentals on the other hand gives you, although lower, a secure and regular income. Your tenants are also more likely to maintain and look after things as you have their deposit as security. This is the choice of the conservative investor.
So which should you buy?
One can never predict what will happen in reality:
We suggest that if you are going to do short-term rentals, buy a smaller property in a better touristy area. Obviously it will cost more, but the chances of selling it on and making a profit is far greater for both the duration that you own it and rent out and upon the eventual resale happening.
Long-term rentals are geared towards locals, families or people that are employed in Malta for work. Potential properties to buy for long lets can be big or small but as you might not be buying in the most touristy areas, may be less expensive.
