Short-Term Rentals Vs Long-Term Rentals: Everything To Know

Real estate has always been a good field of investment. Currently, the popularity of real estate investment is increasing in terms of vacation rental purposes as well. The owners of the properties are now letting out their homes and apartments to the tourists to stay.

You can let out your property as a part of vacation rental in two ways – short-term rental or long-term rental. The decision can be made easily, depending upon the nature of your property and on several other factors.

Listed below is everything you need to know about short-term rentals and long-term rentals.

Short-term Rentals 

Short-term rentals extend flexibility and greater control to the owner over their property. As the name suggests, these properties are booked by the guests for a short stay, say a week or so. You can let out your property as a short-term rental and expect the following advantages:

  • An easier maintenance 

Short-term rental properties are easy to maintain. It is because they witness less wear and tear. A short-term rental is occupied maximum for a whole week and during the busy tourism season, but not for months or the entire year. Thus, as an owner, you relieve yourself from the headache of maintaining the property now and then.

  • More rental income 

The owners of a short-term rental property charge a higher rate when compared to long-term rental. The occupancy can fluctuate, but there is always a bigger chance of earning more rental income when you let out your property as a short-term rental. It is a benefit for all the owners in the long run.

  • Adjustment of price 

Short-term rentals offer the owners the ability to adjust the price of their rent more frequently than the owners of a long-term rental property. You can alter the cost of the rent between occupants. For instance, if you are letting out your apartments in Plano TX as a short-term rental, you can change its price before the next guest occupies the same.

The price can be altered depending upon the higher demand of the property during the peak season. Short-term rentals are not restricted to year-long leases.

Long-term Rentals 

Short-term rentals come with many appealing qualities, but it is no wrong to say that letting out long-term rentals have their own perks. As an investor, these properties are looked upon as more consistent and stable. Here are the benefits of long-term rentals:

  • Continuous cash flow 

A long-term tenant pays you a consistent rental fee on a weekly or monthly basis. Thus, as a landlord or owner of the property, you can rest assured about the continuous flow of cash. Long-term rentals do not witness fluctuations like short-term rentals.

  • Payment of utility bills 

You don’t have to worry about clearing all the utility bills of your long-term rental property as long as it is occupied by the tenants. These bills are passed on to the guests. This factor increases your savings.

  • Cheaper management

When you compare the management of a long-term property with a short-term rental, you will find it to be on a much cheaper side. Long-term rentals do not require a lot of effort to fill occupancies. Thus, the property management fee remains lower than the short-term rental.


If you want to know which is a better investment from among the two, there is no perfect answer to this question. Both short-term rentals and long-term rentals have their own pros and cons. The choice of how you let out your property to the guests or visitors is entirely subjective.

But one thing is sure, letting out your property as a part of a vacation home will always give you good profits instead of renting it out for the long term. That being said, the ball remains in your court.