Long-term vs short-term rental: Benefits and the drawbacks
Renting out an investment property or second home is a proven way to generate income. In recent years, platforms such as Airbnb have made short term rentals more accessible than ever, attracting homeowners with the promise of higher returns. However, before choosing a strategy, it is essential to understand the differences between long term vs short term rentals, including the advantages, limitations, and level of involvement required for each.
This guide compares both models to help you decide which rental strategy best suits your property, lifestyle, and financial goals.
Estimate your property’s potential
Use our estimate widget to quickly gauge the rental potential of your property. Simply enter the address and the number of bedrooms, and get an instant estimate to help you make informed decisions about your investment.
Short-term rentals: the benefits
Higher income potential
One of the main reasons owners choose short term rentals is profitability. In many markets, short term rentals can generate significantly higher income than traditional long term lets. A property earning a fixed monthly rent may produce substantially more when rented by the night, especially in high demand locations or during peak seasons.
Flexibility for owners
Short term rentals offer a level of flexibility that long term contracts cannot match. Owners decide when the property is available and for how long. You can block dates for personal use, family visits, or extended stays without contractual constraints. This makes short term rentals particularly appealing for second homes and holiday properties.
Personal and social experience
For owners who enjoy hosting, short term rentals can be personally rewarding. Meeting travellers from different backgrounds and cultures can be a positive and enriching experience, adding a social dimension to property ownership.
Short-term rentals: the drawbacks
High involvement and availability
Managing a short term rental requires constant responsiveness. Guest enquiries, check ins, issues during stays, and reviews demand quick replies. Delayed communication can negatively affect ratings and visibility on booking platforms.
Frequent cleaning and maintenance
With guests changing regularly, cleaning and linen turnover become frequent tasks. While professional services can handle this, costs must be factored into pricing to maintain profitability.
Trust and wear and tear
Welcoming a high number of guests means accepting a higher level of risk. While platforms provide review systems and host protections, owners must be comfortable allowing frequent access to their property.
Marketing and regulation
Short term rentals require continuous visibility. Listings must be optimised and actively managed. In some cities, local regulations limit how often a property can be rented short term. Understanding local rules is essential to avoid fines or restrictions.
Long-term rentals: the benefits
Stability and peace of mind
Long term rentals offer predictability. Once a tenant is in place, income is secured for the duration of the lease. There is no need for constant marketing, guest communication, or regular cleaning schedules.
Lower management effort
With fewer turnovers, long term rentals require less day to day involvement. This makes them attractive to owners who prefer a hands off approach.
Tenant investment in the property
Tenants staying for extended periods are more likely to treat the property as their home. This often results in better care and fewer minor damages.
Long term rentals: the drawbacks
Reduced flexibility
A long term lease limits your ability to use the property yourself or change your rental strategy quickly. If your circumstances change, you may be locked into a contract for several months.
Limited control
Owners have fewer opportunities to inspect the property or carry out improvements. Maintenance often depends on tenant communication and cooperation.
The alternative: mid-term rentals
For many owners, the debate between long term vs short term rentals leads to a third option, mid term rentals. This model combines elements of both strategies, offering stays of one to six months.
Mid term rentals appeal to professionals on assignment, students, families relocating, and remote workers. For owners, this means higher monthly income than long term letting, fewer turnovers than short term rentals, and reduced operational complexity.
GuestReady mid-term rental management
GuestReady offers dedicated mid term rental management services for owners seeking a balanced approach. We handle listing optimisation, pricing strategy, guest communication, cleaning coordination, and property maintenance.
This allows owners to benefit from increased income and flexibility without the operational burden of managing frequent guest changes.
Calculate your potential short-term rental income
Before deciding, use our free online short-term rental calculator to estimate your property’s income potential. You might be surprised by how much you can charge per night. For further advice about short let vs long let, contact GuestReady.
We can help take the hassle out of running a short-term let, allowing you to enjoy a steady income.
