Short-term vs. Long-term Rentals: A Financial Comparison

By PropsManager Team | Dec 17, 2025

Short-term vs. Long-term Rentals: A Financial Comparison

Short-Term (Airbnb/VRBO)

• Income: Potential for 2x-3x the monthly rent of a long-term lease.
• Expenses: High. Utilities, internet, cleaning fees, furnishing, platform fees, occupancy taxes.
• Vacancy: High risk. Seasonal fluctuations.
• Effort: High. It's a hospitality business, not a passive investment.

Long-Term (12-Month Lease)

• Income: Steady, predictable.
• Expenses: Low. Tenant pays utilities. No furnishing costs.
• Vacancy: Low (usually once a year or less).
• Effort: Low. Passive.

The Verdict

Short-term rentals make more gross revenue, but after expenses and the value of your time, the net profit is often closer than you think.

Conclusion

Do you want a second job (Airbnb) or an investment (Long-term)?