Income comparison
Short-term rentals (STRs) typically generate 2–3x the gross revenue of long-term rentals. A unit renting for $1,500/month long-term might earn $3,000–$4,500/month on Airbnb. But gross revenue isn't net income.
STRs have higher expenses: cleaning ($50–$150/turnover), supplies, platform fees, higher utilities, and more frequent maintenance. Airbnb moved hosts who manage prices through property management or channel management software to a single host-paid service fee of 15.5% (effective October 13, 2026), replacing the older split between host and guest fees. Check your own account, because the structure depends on how you're connected. Net income is often much closer to long-term than the headline gap suggests.
Workload comparison
Long-term rentals are low-touch after move-in. A good tenant pays rent and rarely contacts you. STRs are high-touch: guest communication, check-in/check-out coordination, cleaning scheduling, restocking supplies, and handling reviews.
The workload scales with turnover. A unit with 15 bookings per month requires 15x the communication of a long-term tenant. Unless you hire a co-host or property manager, STRs become a part-time job.
Regulatory risk
STRs face increasing regulation. Many cities now require:
- Short-term rental licenses ($100–$500/year)
- Occupancy taxes (5–15% of revenue, collected from guests)
- Primary residence requirements (must live in the property part-time)
- Maximum rental days per year (30–180 days in some cities)
- HOA restrictions (many condo buildings ban STRs entirely)
- Rules change every year: re-check your city's current short-term rental ordinance before you buy, and again before each renewal.
When to choose short-term
STRs make sense when:
- The property is in a tourist or business travel destination.
- You can handle the operational workload or hire a co-host.
- Local regulations are favorable (no primary residence requirement, no day limits).
- You need flexible access to the property for personal use.
- You can absorb income volatility (seasonality, economic downturns).
When to choose long-term
Long-term rentals make sense when:
- You want predictable, stable monthly income.
- You prefer low-touch management.
- Local STR regulations are restrictive or uncertain.
- You're financing the property and lenders require long-term lease income.
- You value tenant relationships and community stability over maximum revenue.
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