Home / Short-Term vs. Long-Term Rental Income Comparison
Short-Term vs. Long-Term Rental Income Comparison
Put short-term and long-term renting side by side on net monthly income — with a clear reminder that income isn't the whole story.
Two very different businesses, one property
Renting the same property short-term versus on a traditional lease produces two genuinely different income profiles — short-term renting usually has higher revenue potential but with far more variability, cost line items and hands-on work, while a long-term lease is comparatively predictable and low-effort.
Income is only one part of the decision
This tool compares net monthly income only. It deliberately does not — and cannot — quantify the extra day-to-day management effort of short-term hosting (guest messaging, turnover scheduling, pricing adjustments, maintenance response) or the local-regulation risk many cities now attach to short-term rentals, including permit requirements, occupancy caps, or outright restrictions that can change with little notice. Weigh the income gap below against how much of that added effort and risk you're genuinely willing to take on.
Frequently asked questions
What should I include in "extra utilities" for short-term renting?
The portion of utilities — electricity, water, internet, streaming, trash — that you cover as the host and wouldn't typically pay under a long-term lease where the tenant usually covers their own usage. Estimate the extra amount above what a long-term tenant's usage would run you.
Why does long-term renting include a vacancy allowance?
Even stable long-term rentals sit empty between tenants occasionally — during turnover, re-listing, or a slow rental market. A vacancy allowance (often 3–8% of annual rent, but it varies by market) accounts for that lost income realistically rather than assuming 100% occupancy every single month.
Do I need a property manager for the long-term comparison to be fair?
No — if you plan to self-manage the long-term lease, set the management fee to 0%. The field exists because many landlords do use a property manager, which is itself a real cost worth comparing against the effort of short-term hosting.
If short-term renting nets more, does that mean I should switch?
Not automatically. A higher net number is a real point in favor of short-term renting, but you should also weigh the extra time commitment, the unpredictability of month-to-month bookings, and whether your local regulations currently allow (or might soon restrict) short-term rentals at your property before deciding.