For Landlords

Short-term vs Long-term Rentals: Pros & Cons for Landlords

Which is better — short-term rental or long-term rental? We often think and worry about which of the two is a better option for our property. But the bottomline is that both terms are actually good for any property. It’s just that they offer different pros and cons which, in fact, would be the best choice for your property. In short, this is solely up to the landlord to consider which option is better for them. Let’s discuss a few key points on which rental term can be beneficial for your property to make your rental experience amazing!

Short-Term Rentals


Higher Income Potential during Peak Season

It’s important to see the frequency of events in your area. But you should also reconsider the popularity of the area where your property stands. This is where short-term rentals get beneficial for your property + more income for you! Short-term rentals are usually treated as a tenant’s temporary home for a short period of time. In comparison to booking a hotel room, this rental term gives more comfort for tenants who want to feel like just at home for the whole stay.

Quick Adaptation to Market Changes

Aside from higher income, landlords can also adjust the rental rate of their property to adapt changes with market or seasonal demands! On the other hand, tenants still seek for properties that have competitive pricing depending on the area. So, remember to see what’s in it for future tenants in return for that price.

Flexibility for Property Use

Aside from these pros, landlords also have the freedom on when they can use the property for them! This can be really beneficial for landlords who want to use the property on occasions, such as a well deserved vacation for you and your family. Plus, it means less expenses when you need to take that break.


Lower Income Potential during Off-Peak Season

Although short-term rentals are a great option for properties that are in booming areas. But this can also lead to inconsistency in rental income during off-peak seasons. In other scenarios, it might be because the property does not attract more tenants at all. But it’s usually a case-to-case basis. If your property is in the best location for tenants, then you might be off the hook for getting less income. 

Higher Turnover and Maintenance Costs

Short-term rentals can be quite expensive considering the increased turnover of tenants during peak season. As the property is rented often during the whole season, the property requires more frequent maintenance as well. Which means that short-term rentals are great attention-seekers for landlords!

Initial Setup Costs

Since short-term rentals act like a tenant’s temporary home for a short period of time, it is required for landlords to invest in furnishing the property. This will keep the property attractive to the tenants, considering the advantages of having their own temporary comfort during their stay. There’s a good thing about this though: higher investment means higher ROI. 

Long-Term Rentals


Stable, Consistent Income

While short-term rentals offer higher income during the peak season, long-term rentals offer a much more stable income whether it’s peak season or off-peak season. This rental term provides tenants a permanent housing solution, which means that your rental income with this rental term is consistent. Long-term rentals usually take about 12 months in total to the end of a tenancy agreement. 

Lower Turnover and Maintenance Costs

Since long-term rentals have longer tenancy durations, turnover and maintenance costs are much lower than short-term rentals. You don’t have to come over every now and then to check if everything in the property is in good condition and everything works fine. This also means that landlords don’t have to spend so much time finding new tenants to occupy the property from time to time.

Fewer Furnishing Costs

Compared to short-term rentals, long-term rentals require a few pieces of furniture or even no furniture at all! As tenants would treat this as their own home for a long time, landlords are not required to furnish the entire property for the tenants. Tenants usually have their own stuff to make the entire property work, which means less furnishing cost for you. 

Steady Market Demand

Aside from having a consistent income, long-term rentals are also consistent in terms of tenant demand. Whether it is the peak season, off-peak season, or even during economic depression. Let’s admit the fact that everyone needs a house to call home. Long-term rental properties are definitely a solution for that need.


Limited Flexibility

Long-term rentals have less freedom for landlords to adjust rental rates or change the tenancy agreement during the entire lease term. If there are some adjustments or changes to be made, you have to wait until the entire rental period ends. Aside from that, landlords don’t always have the freedom to stay in that property for personal uses at any time due to the long period of the entire rental term.

Potential for Problematic Tenants

Since long-term rentals are literally LONG terms, landlords need to be committed with their tenants for the entire rental term. That means your focus won’t entirely be on the property and tenancy agreement alone. You’d also be dealing with the tenants for the entire period as well. There can be a possibility where landlords encounter problematic tenants. Which can be pretty challenging to deal with! But remember, not all tenants are problematic. I guess it’s just a matter of luck?

Market Considerations

But before deciding which rental term benefits you and your property, you should understand the local demand in the real estate industry. By analyzing and observing the market trends, you will be able to assess your property if it aligns with the market needs or the tenants itself. Reconsidering this option will help you in making informed decisions to maximize your ROI and property potential in the long run.

Financial Analysis

Aside from market considerations, you should also consider calculating the potential income for each scenario. Is short-term rental better for my property? Or does long-term rental give me a higher chance of maximizing my entire investment? Consider all your expenses before deciding which is which. Weigh your rental strategy with your financial achievements.

Risk Management

Both rental terms pose risks in the long run. That’s why you have to evaluate and come up with a plan on how you can overcome these challenges without losing so much from your investment. As a landlord, you should be able to navigate yourself through the entire challenging process by coming up with a Plan B for everything. Advanced and practical mindset makes a ready-to-go landlord.

Decision-Making Tips

Before making the decision, always recognize your preferences and goals. Balancing your goals with your lifestyle is the answer to making the right decision. Always think in two point-of-views: yourself and the landlord. By considering the different circumstances and advantages you’ll get from either rental terms, you’ll eventually decide which is right for you and your property. But either way, both rental terms are good for your property – maybe you just have to decide which is more beneficial for you.


Short-term rental and long-term rental poses different outcomes for you. It is important for landlords to understand the advantages and disadvantages for their own rental strategy. This means that landlords would make informed decisions based on their preferences by weighing which rental term and approach would do better for them and their property. In conclusion, a great rental management strategy leads to a successful and profitable investment journey.

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