Airbnb vs Long-Term Rental: Which Is Actually More Profitable?
"Short-term rentals make three times the rent" is half a sentence. They can gross far more — and they can cost far more to run. The only honest way to settle it is to model the same property both ways and compare what actually lands in your pocket.
Start with net, not gross
A long-term lease grosses a predictable rent with modest expenses. A short-term rental (STR) grosses more per booked night — but you have to subtract things a landlord never sees:
- Occupancy — you are never booked 100% of nights. 60–75% is a realistic band in many markets.
- Cleaning and turnover — every guest is a turnover cost.
- Furnishing and replacement — you supply everything, and it wears out.
- Utilities, internet, supplies — all on you.
- Platform fees and management — 3% to 25% depending on how hands-off you are.
Rule of thumb: an STR needs to gross roughly 2–3× the long-term rent just to net the same amount, because operating costs run so much higher. Below that multiple, the lease usually wins on a risk-adjusted basis.
Then weigh the risk you can't put in a cell
STR income is seasonal and regulation-sensitive — a single city ordinance can zero out your model overnight. A long-term lease trades upside for stability. Neither is "better"; they're different risk profiles for the same four walls.
Make the decision on numbers
Run both scenarios side by side: net operating income, cash-on-cash return and DSCR for the lease case and the STR case. If the STR advantage is thin, the lease is doing more for less effort. If it's wide and your market is stable, the STR earns its extra work.
Do it in one place. The EYRIE Airbnb / Short-Term Rental Tracker models STR income and costs and gives a direct STR-vs-long-term verdict, then aggregates multiple properties. See it on Etsy →