Long term Vs Short term rentals

In most situations, short-term rentals will make more than long-term.

Which one makes more money?

On the surface, long-term rentals are much more passive than long-term rentals. With Airbnb, you have to communicate with prospective guests.

Which one takes less time to manage?

Short-term rentals are a hospitality business as much or more than a real estate business. As such, you will be interacting with people more and in more interesting ways.

Do you like dealing with people?

With long-term rentals, you can pretty much get a place habitable and then lease it out. The level of required amenities is quite low.

Do you have time for a Longer setup?

Purchase price: 100k Equity: 20k Furniture/STR startup expenses: 10k In this example, the STR would cost an extra 10k out of pocket to get started. This is because most loans are not going to lend on furniture.

The short term requires higher startup costs.

I am sure you know the broken toilet at 2 am objection that most people have to real estate investing. The hiccups that come along with a short-term rental are usually different.

Difference in headaches