Going from Short term to Long Term Rental
What a whirlwind this last year has been! COVID erupted, sanitizer and face masks became the new norm and nearly everything was canceled; including long-awaited holidays to Barbados.
Property owners who in the past rented out their holiday investments on the short-term market experienced a surge in cancellations due to ever-changing travel protocols and country restrictions. A lot of potential income seemed to be going down the drain and then our Prime Minister, Mia Mottley, stepped in and announced the launch of the Welcome Stamp! Why work remotely from home when you could work remotely in Barbados?
Visit https://barbadoswelcomestamp.bb for ideal work from Barbados options!
The Welcome Stamp has been a fantastic, much-needed boost to our economy and in tandem proven to be an extremely popular option for digital nomads and families looking to relocate overseas to experience life in the tropics, a new culture, and an outdoor lifestyle! Plus, they all needed a place to stay… cue short-term rental owners changing tactics and looking into mid and long-term rentals to take advantage of the opportunity.
We have had many conversations with short-term rental owners regarding rental offers for their properties. They are the perfect option for these clients as all are fully furnished and equipped – just pack your suitcase! The last thing tenants want to think about are linens, towels, and kitchen utensils… They’re more concerned about the best beaches, latest surf spots, and trying Bajan cuisine!
Our conversations generally included:
Keeping it clean:
Offer pool and garden maintenance in the monthly rate. This ensures that your property is being maintained to the standard you expect through the tenants’ stay. For short-term owners who employ housekeepers for their property, please let your agent know and we will be mindful of this when advising the rental rate. Tenants are always happy to know that they will have help cleaning a property!
Short-term rates are done on a nightly basis, however mid and long-term rental rates are devised differently. They are instead calculated on a monthly basis depending on the length of tenancy and can include or exclude the utilities depending on the landlords’ preference.
A nightly rate for a 3-month rental will be much higher than expected compared to the current market rate for a property on a mid-long term rental.
Owners should expect to earn less overall for the time period for mid-long term rentals, however, the property will be occupied for longer, less stress with handovers, lower utility bills, and maintained better.
Utilities are usually excluded for a 6+ month rental but they can be included for shorter stays between 2-5 months. We always recommend a cap on electricity per month to protect the landlord and also encourage tenants to be mindful of their usage. If a tenant exceeds their monthly cap, we include a clause in the contract stating that the excess is to be paid by them.
Internet speed is crucial for anyone working from home. Your agent will ask you for the current internet speed/ package as it is a question that we always get asked!
Deposits are always important to protect the landlord and are taken once the contract is signed. This helps cover any damage that isn’t wear and tear and gives you, the landlord, peace of mind.
Pets are the alternative child and we have seen a large increase in the request for tenant’s pets to be brought along to Barbados for their Welcome Stamp duration. Most condos, unfortunately, don’t allow pets but for properties that do, it is always at the owner’s discretion. We ask for a picture, whether the pet is trained, and most importantly a pet deposit.
We understand that you will have your property advertised on short-term rental websites, so please let us know if your availability dates change so that we can inform tenants correctly.
P.S Congrats on the booking…
If you have any other questions about what to expect, please don’t hesitate to reach out! The Welcome Stamp has proven extremely popular with visitors from around the world. The clients that I have spoken to have encouraged their friends to come down and have already said they will be back to visit Barbados.