Short-Term Rentals vs. Long-Term Rentals: Which Is Better for You?

If you’re considering renting out your property, one of the biggest questions you’ll face is: short-term or long-term?

It’s not just about income—it’s about lifestyle, responsibilities, legalities, and what kind of host you want to be. Let’s explore the differences, the pros and cons, and how to figure out what works best for your situation.

What’s the real difference between short-term and long-term rentals?

Short-term rentals (STRs) are often defined as stays under 30 days, and typically cater to travelers, tourists, or remote workers looking for temporary accommodation. These are most often found on platforms like Airbnb, Booking.com, and VRBO.

Long-term rentals, by contrast, involve tenants staying for several months to a year (or longer), and are usually listed through real estate agents, Facebook housing groups, or traditional rental portals.

The difference isn’t just length—it’s who you're hosting, how much control you have, and the amount of effort you’ll invest.

Pros and cons of short-term rentals

Short-term rentals offer more flexibility, higher potential income per night, and control over your calendar. But they also require more hands-on work—or at least a system to manage it all.

Pros:

• Higher revenue potential per night
• Flexibility to use the property yourself
• Less risk of long-term tenant issues

Cons:

• Higher turnover (cleaning, check-in, communication)
• Regulatory restrictions in some cities
• Income can be seasonal or inconsistent without optimization

STRs are ideal for owners who want to stay involved or use tech and services to automate the day-to-day. They also allow you to pull your property off the market whenever you want.

Learn more in our getting started with hosting category.

Pros and cons of long-term rentals

Long-term rentals are often simpler to manage—but with less flexibility and a capped earning potential.

Pros:

• Stable, predictable monthly income
• Fewer operational tasks (no guest turnover)
• Often fewer startup costs (no staging or premium furnishings)

Cons:

• Locked-in contracts with less access to your property
• Legal responsibilities as a landlord (evictions, maintenance, deposits)
• Lower earning potential in high-demand areas

LTRs make sense for landlords who want passive income and don’t mind long periods of low interaction or legally binding commitments.

Which is more profitable?

Profit depends on location, demand, seasonality, and property type. A centrally located studio in a tourist-heavy city might earn twice as much as a long-term rental—if managed properly.

But a rural home or one in a highly regulated city might not perform well short-term. Run the numbers. Tools like AirDNA and Mashvisor can help you compare potential earnings.

Need help with pricing? Explore how to earn more from your rental.

What about the legal side?

Short-term rentals often have stricter regulations. You may need a license or to pay tourist taxes, especially in cities like Brussels, Amsterdam, or Barcelona. Long-term rentals usually fall under landlord-tenant laws, which come with different responsibilities.

Check local zoning laws and housing rules before committing. We cover legal essentials in our guide on hosting rules, taxes, and legal tips.

Is a hybrid approach possible?

Absolutely. Many hosts rent their property short-term during high season (like summer or holidays), then switch to a medium or long-term rental during slower months. This strategy lets you balance effort, flexibility, and income.

Just make sure your property and local laws support this switch. And know that listing management and pricing strategy will need to adapt as you go.

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