Short-Term vs. Long-Term Rentals: Which Makes More Money and Why?
If you own a rental property, one of the biggest decisions you’ll face is whether to offer it as a short-term rental (like Airbnb or Vrbo) or stick with a traditional long-term lease. Both options have their pros and cons—but when it comes to income potential, one often stands out.
In this post, we break down the key differences between short-term and long-term rentals, and reveal which model can deliver higher returns—plus why more owners are making the switch to short-term property management.
Short-Term Rentals: The High-Reward Option
Short-term rentals are properties rented out by the night or week—typically furnished and listed on platforms like Airbnb, Vrbo, or Booking.com. Here’s why they often outperform long-term leases financially:
✅ Higher Nightly Rates
You can charge significantly more per night than you’d earn from a monthly tenant—especially in desirable or high-demand areas.
✅ Flexibility
You can block off dates for personal use, raise prices during peak seasons or events, and adapt to market trends in real-time.
✅ Multiple Revenue Streams
With add-ons like cleaning fees, pet fees, early check-in/late checkout, and extra guest charges, short-term rentals open the door to additional income.
✅ Better Maintenance Oversight
Frequent cleanings and guest turnover mean you (or your property manager) can catch issues early—before they become major repairs.
Long-Term Rentals: The Low-Maintenance Choice
Long-term rentals are leased to tenants for periods of 6–12 months or more. They come with a different kind of appeal:
✅ Stable, Predictable Income
You collect the same amount each month, regardless of market fluctuations.
✅ Lower Operational Demands
No constant guest turnover, less frequent cleaning, and fewer day-to-day responsibilities.
✅ Lower Start-Up Costs
You typically don’t need to furnish the unit or manage utilities, which can mean lower upfront investment.
However, the trade-off is that long-term rents are often significantly lower on a per-night basis, and you may have less flexibility if a problem arises with a tenant.
So… Which One Makes More Money?
Short-term rentals typically generate 1.5x to 3x more income than long-term leases if managed properly. That’s the key. Without strong pricing strategy, excellent guest communication, and streamlined operations, a short-term rental can underperform.
That’s where we come in.
At Host & CO we specialise in maximising the potential of short-term rentals through smart pricing, professional listing management, and full-service property care. Many of our clients earn far more than they did with traditional tenants—without the added stress.
Conclusion: Maximize Profit, Minimize Stress
If your goal is to get the highest return on your property investment, short-term rentals offer more income potential—especially when backed by expert property management.
Curious what your property could earn?
Contact Host & CO today for a free revenue estimate and consultation.