Long-term rentals in particular and investments in general vary between industrial, agricultural, touristic, and real estate investments. Real estate has consistently proven to be an effective method of accumulating wealth. Having rental properties can offer a consistent income stream and assist in reaching financial independence in the future. To prevent making a non-profit investment when renting out your apartment, it is important to follow specific steps, such as deciding on the type of rent to offer.
Whether you prefer the monthly rent, which is a long-term commitment to a specific monthly amount documented by a rental contract that urges the tenant to pay it at the end of each month. On the other hand, short-term rentals, is a type that allows you to change tenants repeatedly every period, according to supply and demand, without committing to them formally. In both cases, you have to identify and choose the type of tenant suitable for you who will not procrastinate in paying the rent for the monthly rent and will not cause any damage to the leased property.
For short-term rentals (you can read more about it here).
In this article, we will speak about long-term rentals, and how you can achieve financial success with this investment.
How to choose the best apartment for long-term rentals?
In order to get a guaranteed additional rental income, you need to choose your apartment with rational and appropriate conditions, such as:
- Choose the right city: Choose a city that is characterized by continuous demographic, industrial, and commercial growth.
- Good choice of location: Choose a strategic location and check its proximity to shops and normal daily life.
- Avoid buying in cheap neighborhoods: Although the prices are cheaper, these neighborhoods are often not in demand for rent because they do not have the necessary facilities for daily life. Instead, bet on high-end neighborhoods, which are always in high demand.
- Security: Choose areas that are protected and known for their sense of safety and security.
- Target clientele: If you are renting to a family, consider proximity to schools and nurseries, and if you are renting to students, you should choose an apartment close to the university or connected to the university facilities by public transportation.
As mentioned above, real estate is a sustainable investment over time, so even if your intention is only to rent, choose an apartment that is of high quality and strategically located, as it could become your future primary residence.
Important key steps to follow:
Getting Started: Building your rental property strategy
Prior to delving into a new investment opportunity, it is prudent to thoroughly research and prepare. Below are important points to consider when it comes to renting:
- Hire a professional: A trustworthy real estate agent can be a valuable partner. They will help you understand the laws, find the right property, and ensure a good agreement.
- Understand the market: Conduct thorough research! Gain an understanding of the neighborhoods, the types of tenants, and the rental market conditions. Remember to review the local regulations.
- Set Your Goals: Decide on the kind of property, area, and expected investment profit. This will assist you in reducing your options.
Comparing Furnished and Unfurnished Options: Making a Decision
You need to decide on which type of rental to adopt, furnished or not. This can be a crucial decision that can affect your financial success. Both of these models have pros and cons; we will go through each one of them to make it easier for you to choose.
Furnished Apartments:
Pros:
Furnished apartments have the potential to bring in higher rental earnings compared to unfurnished apartments. This rental option is more suitable for tenants who want a furnished unit to skip the hassle of finding furniture.
- Quicker occupancy: The ease of having a furnished space can lure in tenants who prefer not to purchase furniture on their own. This may result in decreased vacancy periods and a more stable revenue stream for you.
- Possible decreased damage: Providing your own furniture could result in less wear and tear on your property in comparison to what tenants bring in.
There are certain disadvantages to consider in regards to furnished apartments.
- Elevated initial cost: You will need to cover the cost of furnishing the space, which can be a substantial sum of money in the beginning.
- Higher Management responsibility: You will be responsible for maintaining and replacing furniture as needed, adding to your management duties.
- Pickier clients: Not everyone is looking for a furnished apartment. This might limit the pool of potential renters you can attract.
Unfurnished Apartments: Keeping it Simple
There is also the option to go unfurnished. Here is what it offers:
- Save up front: By not needing to buy furniture, you will save money right from the beginning.
- More potential renters: You are more inclined to attract a broader range of tenants, including those who prefer to decorate and personalize their living space.
- Limited management responsibility: You will not need to deal with overseeing and up keeping furniture, allowing you more time and resources.
Of course, there are also certain drawbacks.
- Potential lower rent: Unfurnished apartments are generally priced slightly lower than furnished ones. Tenants may experience delays in finding a suitable unfurnished apartment, resulting in potential periods of vacancy.
- Greater potential for damage: Tenants’ furniture selection and behavior could result in more wear and tear on your property than if you used your own furniture.
The decision is up to you!
In the end, the choice between furnished and unfurnished will vary based on your individual circumstances and objectives.
Consider your finances, the type of renters you aim to draw in, and your future investment strategies before reaching out.
Investing in the Right Place
Each of the mentioned cities offers unique advantages for investors, catering to different preferences and budgets:
• Tangier: Morocco’s economic powerhouse, Tangier, blends modern development with its rich historical monuments. This vibrant city attracts professionals and families seeking a dynamic environment with access to excellent amenities, including international schools and cultural landmarks. While rental yields here may trend towards the higher end, the potential for long-term capital appreciation is also significant. Here are some great options you can check out in Tangier.
• Tetouan: Nestled in the Rif Mountains, Tetouan offers a unique blend of Andalusian and Moroccan influences, captivating visitors with its stunning medina, rich cultural heritage, and growing artistic scene. While the tourism sector is still developing, Tetouan presents a unique opportunity for long-term rental investors seeking a charming and historically significant city with untapped potential. Here are some great options you can check out in Tetouan.
• Martil: Renowned for its relaxed atmosphere and stunning beaches, Martil offers a slower pace of life compared to Tangier. This is a favored option for young professionals and families looking for a cost-effective and enjoyable coastal way of life. Although the rental income in Martil may be a bit less than in Tangier, the lower initial cost and laid-back environment can offer a compelling chance for investment. Here are some great options you can check out in Martil.
• M’diq: This dynamic coastal town is famous for its water sports activities and is experiencing a surge in popularity among young professionals and entrepreneurs. M’diq provides a mix of affordability, close proximity to the beach, and a developing community, which makes it an attractive choice for investors looking for a balance between rental profits and potential increase in property value. Here are some great options you can check out in M’diq.
• Cabo Negro: Catering to high-end residents, Cabo Negro boasts luxurious beachfront properties and an exclusive resort atmosphere. Although rental yields are lower than in other cities, the possibility of significant capital appreciation in this high-end area is present. Furthermore, having a property in Cabo Negro gives investors access to the expanding high-end tourism industry in Morocco. Here are some great options you can check out in Cabo Negro.
Groupe AAFER immobilier, a top real estate developer in the area, is available to help you discover the finest apartments in key locations across these enchanting northern cities. Our knowledge of the market at a local level can help you make well-informed investment choices that lead to success. Having a stake in the northern part of Morocco provides more than just financial potential; it allows individuals to be involved in a growing and changing area. Are you prepared to begin this thrilling adventure?