For those who buy apartments for investment purposes, the next step is whether to give them out for short-term rentals or the long haul. Both strategies have their pros and cons, so you will first need to do a little research on factors such as the location, rental market conditions, the type of residential real estate and your financial goal.
As a basic description, Short-Term Rentals typically involve leasing for a few days or weeks. Airbnb is a popular facilitator for such short-term stays. Long-Term Rentals on the other hand, come with a 12-month or longer rent agreement.

Here are some more details about apartment investment in Trivandrum to help you decide which one is more suited to your needs:

Short-term Rentals

• Apartments are typically leased for short durations on a day-to-day or weekly basis.
• Short-term rentals typically generate higher incomes per day as compared to long-term rentals. During peak season timing, you can even charge premium rates.
• This format of investment is also susceptible to market volatility. Rental incomes can become affected by seasonal demands and unexpected events like political turmoil, natural calamities or economic downturns.
• You can enjoy the additional bonus of using the property for your personal purpose too when it isn’t occupied by guests – or schedule it to remain vacant during your stay requirement.
• The downside to short-term rentals is the increased management effort required. You always need to be available for bookings, check-ins and cleaning and maintenance.

Long-Term Rentals

• Long-term rentals is an investment strategy for longer time periods, typically ranging from six months to a year or more.
• This investment strategy ensures a stable and predictable stream of income that allows you to plan ahead financially.
• Over the years, the potential for rent appreciation also exists, as the value of the property and its locality gain in capital value. This would lead to greater financial gains over the long term too.
• There are fewer hassles involved in the management and maintenance of long-term rental properties. With fewer tenants, the need for continuous communication and marketing is also less.
• The turnover costs are also lower as there are fewer inputs for marketing, housekeeping and repairs.

Finally, your investment strategy should depend on your personal needs too!