Should I Do Short or Long-Term Rentals with My House?
Do you want to put a property on rent?
There are two ways you can do so: short-term rental (which is also called Airbnb) or long-term rental (which is a traditional way to rent a house).
Both options have their perks for hosts. And both come with a few headaches.
Short-term rental (STR) has high rental income potential with flexibility, but requires more management. On the other hand, long-term rentals provide more stable income and lower management needs.
So, which one should you go for? What are the pros and cons of both?
Read this guide to have all your questions answered!
Table of Contents
Short-Term Rentals (Airbnb)
Short-Term Rentals (STR) means renting out a residential property for less than 30 days straight. This time limit depends on the local STR laws.
Most people use Airbnb, Vrbo, Booking.com, and/or other OTA platforms. Hosts welcome guests who are on vacation, on work trips, or on short visits. They also furnish the place, pay the bills, and handle everything.
It is like running a mini hotel—but one that is inside a regular home.
That said, here are some pros and cons of short-term rentals:
Pros
These are a few advantages of short-term rental:
Higher Potential Income
Let’s discuss the money first.
After all, this is the reason most of us are even thinking about Airbnb. Right?
When your place is fully booked, STR can generate two to three times more income than a regular monthly rental.
For example, if a long-term tenant pays you $1,000 a month, you can earn $3,000 to $5,000 by hosting guests each night.
Of course, you have expenses like cleaning, utilities, and restocking supplies—but your net profit can still be much juicier.
This particularly happens in touristy or high-demand areas with higher income potential.
Flexibility
The second most important perk of STR is flexibility.
You can block off dates whenever you want to and keep your property for personal use—like for holidays, quiet weekends, or family visits.
Suppose you have a mountain cabin. You can live by yourself there and enjoy it. And you can also make money from it when you are not there.
You are in full control of when your property is available, which isn’t something you get with traditional leases.
Exposure to Travelers & More Fun
You are not just renting out a place—you are hosting.
Some people love this part. You get to meet folks from all over the world. Some become repeat guests or even friends. You even get positive reviews from happy ones that are really rewarding.
It is not just real estate—it is hospitality.
If you like people, this part can be a lot of fun.
Cons
Here are a few downsides of Airbnb (short term rentals):
Higher Management Needs
Airbnb isn’t a “set it and forget it” deal—it is a lot of work.
You manage bookings, message guests, and solve their problems at midnight, handle cleaning, refill supplies, fix things fast, and the list goes on.
Even if you automate some of it, it still takes time.
If you host 5 to 7 groups per month (which most hosts do), it means a lot of communication and constant attention.
It is definitely not passive income, unless you have a great team helping out.
Higher Vacancy Risk
Unlike a lease, where someone pays rent every month, Airbnb income depends on bookings.
If it is off-season, or if there is too much competition in your area, you might have nights—or weeks—where your place sits empty. That is lost income.
You’ll need to get really good at pricing, marketing, and getting those 5-star reviews to keep your calendar full.
More Upfront Costs
You’ll need to furnish your place with essentials like beds, couches, dining tables, towels, kitchen tools, Wi-Fi, smart TVs, and decor.
It adds up fast.
You’ll probably want professional photos and even some small renovations to make it “Airbnb-ready”. Plus, you’ll be paying for all the utilities, streaming services, and little guest touches like coffee, soap, and snacks.
STR is an investment from day one.
Potential for Difficult Guests
Most guests are respectful, but you can get some who are not.
Loud parties, unfair complaints, last-minute cancellations, or guests who don’t follow the rules. These are a few issues you should keep yourself ready for.
And bad reviews? They can hurt your listing and your income.
Hosting means dealing with the occasional “Karen” or that one group who treats your place like a frat house.
Long-Term Rentals (Traditional Renting)
Long-Term Rentals (LTR) are leased for 9 to 12 months (sometimes longer).
It is more of a hands-off, steady approach to real estate. At the time of handover, the property is usually unfurnished. Also, the tenant pays all the bills.
Many landlords love the peace of mind that comes with a consistent tenant.
Pros
You (as a host) get these advantages from long-term rentals:
Stable Monthly Income
This is the main reason people go with long-term rentals.
Each month, your tenant pays rent. It is consistent, predictable, and helps you budget. There is also no need to worry about bookings or slow seasons.
Even if the rent is not as much as STR, the reliability is valuable.
It gives you peace of mind knowing you have income coming in, whether it is January or July.
Lower Management Needs
With a long-term lease agreement in hand, you don’t manage any bookings or change bed sheets every week—it is the tenant’s responsibility.
All you have to do is collect rent every month and handle occasional maintenance requests (if they fall under your care).
No guest texting, no check-ins, no cleaning arrangements.
On top of that, it is possible that you hear your tenant once a month, or even less.
If you’re a busy person, traditional leasing is the perfect fit for you.
Lower Upfront Costs
Long-term rentals often exempt the need to fully furnish the property.
Tenants bring their own supplies—kitchenware, decor, furniture, and so on. You won’t even need to stock supplies (towels, shampoo, coffee, etc.).
That means you save thousands right away.
As long as the home is clean, safe, and livable, it is good to go.
A few repairs or a simple paint job are often all it takes to get it ready for move-in.
Cons
These are the disadvantages of traditional rentals:
Lower Potential Income
The income you earn monthly is usually much less than from short term rentals.
If your long-term tenant pays $1,200 a month, an Airbnb in the same area might bring in $3,000 or more—if it is booked solid.
So while you are getting steady money, you are also leaving income on the table.
This slow-but-steady pace may feel limiting if you are trying to scale fast or hit big financial goals quickly.
Less Flexibility
Once someone signs a 9-month or 12-month lease, your home becomes theirs.
You can’t just show up or block a few days for yourself.
You can’t use, make changes to, or sell the property within the lease period. What it means is that you have no (or very limited) control over your property.
If you want flexibility to use the home personally, long-term renting isn’t the best fit.
Potential for Difficult Tenants
Just like short-term rentals have difficult guests, long-term rentals can have difficult tenants.
Late rent, property damage, or even full-on squatting can happen.
And the worst part? It takes months to evict a bad tenant, and it costs a lot. It is even possible that you don’t get your property back quickly, even after making all legal efforts.
One bad tenant can create a lot of stress and eat into your profits.
Short Term vs. Long Term Renting: Legal Rules and Regulations
This part can be tricky.
With long-term rentals, laws are pretty standard and stable. Once you have a tenant and a lease, both parties are mostly good to go.
But with short term, it is a different story.
Some cities welcome short-term rentals. Some require permits, limit how many nights you can host, or ban short-term rentals altogether.
And these rules can change with little notice.
So, always check your local laws before turning your place into an Airbnb. Know whether STR is allowed in the area, if any permits are required, and if there are any associated fees.
Also, taxes are handled differently.
Airbnb hosts can take advantage of something called bonus depreciation—basically, a way to save a lot on taxes if you actively manage the property yourself.
Long-term landlords can also qualify for tax breaks.
But it typically requires meeting the criteria as a “real estate professional”, which can be challenging for W-2 workers.
Making the Decision
- Your financial goals
- Your time commitment
- Your location and the local market
- Your risk tolerance
If you are creative, don’t mind people, and enjoy a hands-on business with the chance for higher income, STR might be your thing. On the other hand, if you want peace of mind, a stable income, and less stress, traditional renting is probably the best option. Also, think about your time. Short term rentals take more of it. Even if you automate a lot, you’ll still be involved—handling guest issues, coordinating cleaners, and fixing stuff fast. Traditional renting? Once it is set up, it usually runs on autopilot. So, choose wisely.
Conclusion
There’s no one-size-fits-all answer when it comes to short term vs traditional renting.
Both options have their own set of pros and cons.
STR gives you the chance to earn more and keep things flexible, but it does require time, effort, and patience. Long term renting offers consistency and ease, but with less earning potential and flexibility.
So, before you decide, take a good look at your goals, your availability, and your property’s location.
Think long-term. Think practically.
And most importantly, go with the option that fits you best.
Ready to Maximize Your Short-Term Rental Income?
Navigating the world of short-term rentals can be complex. Our co-hosting services provide the full support you need to get started and succeed, from listing to guest care.
Maybe You Like
