Collings Real Estate, Edit

Short Term Stay (AirBnB) vs. Long Term Lease

January 26, 2022

Short term vs long term lease

What is the difference between the two? And which is better for my property?

There are several advantages and disadvantages to leasing your space short term and long term.  Check out our list so you can see for yourself which one you will have for your rental.

Short term stay (AirBnB) – advantages

  • Flexibility. Short-term stays allow property owners the opportunity to use their properties in between guests.
  • Higher rental rates. Short-term rates have a higher potential to generate more revenue especially if you are in a very good location. You can increase your rates for every new set of guests.
  • Less wear and tear. Short-term stays allow for the property to “breathe”; owners can have regular maintenance checks and upgrades if necessary, and overall cleaning.
  • Convertible. Based on your needs, you can switch from short-term stay to long-term rental easily.


Short term stay (AirBnB) – disadvantages

  • Lack of security. If you’re in a location where tourism is seasonal, there is no guarantee that your property will be occupied the entire year. This is something that you should address early on so you can plan for the months that you don’t expect to earn.
  • Fluctuating income. In real estate, there is a phrase called “feast or famine”, and this is true especially for short-term stays. As mentioned, if your location is also in an area with seasonal tourism activity (near a beach), then you might experience this.
  • More paperwork. Since you will be constantly changing guests, there is more amount of paperwork to accomplish as compared to when you’re having your property available for a long-term rental.
  • Maintenance. While it is also an advantage to have a more regular time to clean up after every guest up and leaves, it also costs a fair amount of money as compared to long-term rentals where the guests tend not to take care of the property as carefully, if not screened correctly.


Long term lease – advantages

  • Stability. A long-term lease offers a more stable income and you won’t need to worry about vacancies often.
  • Certainty. In terms of your long-term financial plans, it is easier to forecast it if you have a long-term lease. If you have other investments that you want to save up for, you can easily plan for them.
  • Management is easier. There are Real Estate agencies that can manage the property all year round and assist with the following duties: finding and screening a potential tenant, conducting regular inspections of the property, arranging maintenance issues to be fixed, and resolving any disputes.


Long term lease – disadvantages

  • Locked in. For example, your town suddenly decided to hold a world-class event and the demand for a rental space soars, if you have a long-term tenant, you cannot take advantage of the opportunity to charge higher for a short-term period.
  • Negotiations are longer.  Since your tenants would stay longer with you, they would want to work out additional perks to their stay.


Overall, there are both a couple of advantages and disadvantages to short-term stays and long-term leases. Make sure to gauge your risk tolerance and how renting out would play a part in your investment plans and financial plans.

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