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 (3% host fee + guest service fee), higher utilities, and more frequent maintenance. Net income is often only 20–40% higher than long-term, not 200%.
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)
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.