Updated for 2026 Strategy

Airbnb vs. Long-Term Rental: Which Strategy Wins?

Run the numbers with professional-grade financial modeling. Compare monthly cash flow, vacancy impacts, and total ROI to make the data-driven choice for your property.

A
B
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+10k

Trusted by 10,000+ Airbnb hosts & investors worldwide.

Short-Term Rental

Airbnb / Vrbo / direct booking

Income

$
0%50%100%
$

Expenses

%
$
$
$
$
$
%
%

Long-Term Rental

Traditional 12-month lease

Income

$
%

Expenses

$
$
$
%
$

Shared Costs — applies to both strategies

$
$
$
Short-Term Rental earns $15,120 more per year
At 65% occupancy, STR outperforms long-term rentalNote: LTR is operating at a loss at these inputs.

Annual Summary

MetricShort-Term Rental WinnerLong-Term Rental
Annual Gross Revenue$53,381$20,520
Annual Total Expenses$43,741$26,000
Annual Net Profit$9,640-$5,480
Monthly Net Profit$803-$457
ROI (net / shared costs)Annual net profit divided by annual shared costs (mortgage + tax + HOA). A rough proxy for return vs your fixed obligations.
44.6%25.4%
Net DifferenceSTR ahead by $15,120/yr

Break-Even Occupancy Analysis

Your STR matches long-term rental income at 38.1% occupancy. You're above break-even — STR is more profitable at your current occupancy.

Green = STR annual net profit at each occupancy. Blue dashed = LTR net profit (fixed). Amber dashed = break-even crossover.

Risk Comparison

Key risks to weigh before choosing your rental strategy.

Short-Term Rental Risks
  • Seasonal income volatility — revenue swings by month
  • Platform rule changes or unexpected delistings
  • Higher property wear with every guest turnover
  • Guest damage beyond security deposit coverage
  • Active management: 5–15 hrs/week of your time
  • HOA bans & local STR regulation risk
  • Increased liability exposure from short-term guests
Long-Term Rental Risks
  • Tenant non-payment or persistent rent arrears
  • Eviction: costly process taking 2–12 months
  • Vacancy gaps between tenants cut annual yield
  • Tenant disputes and long-term property damage
  • Locked into below-market rent mid-lease term
  • Lower income ceiling vs STR in high-demand areas
  • Surprise large repair obligations from wear

Effort vs Reward

Short-Term Rental
  • Higher income potential — typically 2–3× LTR in good markets
  • Flexibility to block dates for personal use
  • Shorter exposure per guest if issues arise
  • Requires active management: guest comms, pricing, reviews
  • More wear and tear on the property
  • Seasonal income volatility
  • HOA / local STR regulations may restrict use
Long-Term Rental
  • Steady, predictable monthly income
  • Lower ongoing management burden — more passive
  • Lower furnishing and operational costs
  • Simpler tax situation in most jurisdictions
  • Lower income ceiling vs STR in high-demand markets
  • Vacancy between tenants can reduce returns
  • Tenant disputes / evictions can be costly and slow

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Keep your finances organized and your property performing.

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Frequently Asked Questions