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Why Short-Term Rentals Outperform Long-Term Tenants

When renting out a property, owners have two options: long-term tenants or short-term rentals on platforms like Airbnb and VRBO. Both options have their own set of pros and cons. The advantage goes to short-term rentals. This gives property owners more freedom and exponentially higher earning potential.  Below, we will discuss the benefits of short-term renting over long-term tenants.


Increased revenue

The primary benefit of short-term rentals is the increased revenue. Renting out a property on a short-term basis, such as through Airbnb, can generate more income than renting to a long-term tenant. Short-term renters are often willing to pay more per night for the convenience and amenities of a vacation rental.


Additionally, short-term renters typically travel for leisure or business and look for a comfortable and well-equipped space. As a result, they are willing to pay a premium, which can translate into higher income for the property owner. Property owners also have the option to increase the rental rate during peak seasons or holidays, which can further increase their income.



Flexibility is another benefit of short-term renting. With long-term tenants, property owners are locked into a lease for several months or even years. However, with short-term renting, property owners can change the rental schedule as needed, whether for personal use or to accommodate peak demand. As a result, if a property owner wants to use their property for a few weeks in the summer, they can stop renting it out on a short-term basis and use it themselves. When finished, they can then resume renting it.


Minimal maintenance

Contrary to popular belief, short-term rentals require less maintenance than long-term tenants. This is because long-term tenants may make changes or cause damage to the property over time. On the other hand, short-term renters typically only stay for a few days or weeks. Most of that time is spent out of the property, visiting the place they travelled to. This means less wear and tear on the property, and fewer repairs are needed.


Property owners can also hire a professional cleaning service which handles the cleaning and maintenance between stays. This can save property owners a significant amount of time and effort.


Furthermore, owners can outsource the entire rental process to companies like Guest Haus. Please take a look at our property management process here.


Tenant screening

The screening process is one of the most time-consuming and potentially stressful aspects of renting to long-term tenants. Property owners need to check credit scores, employment history, and references. However, with short-term rentals, property owners can rely on the vetting process provided by the platform, such as Airbnb’s reviews and ratings system. This system lets property owners see potential renters’ previous reviews and ratings. This can provide a good indication of whether they would be reliable renters or not.



Short-term rentals are an excellent option for property owners who live in tourist-friendly areas. Properties located in popular vacation destinations, such as beach towns or ski resorts, can command higher rental rates and attract a steady stream of guests throughout the year

Tax benefits

In some cases, the income from short-term rentals can be considered passive income, which may be eligible for certain tax deductions. Property owners can also deduct certain expenses related to the rental, such as cleaning, repairs, and advertising. It’s always best to consult with a tax professional to understand how short-term rentals may impact your taxes.


Diversified renter base

Another benefit of short-term rentals is the diversified renter base that it provides. With long-term tenants, property owners depend on a single tenant for their income. However, with short-term rentals, property owners can rent their property to a wide range of renters, including travellers, business professionals, and even locals. This diversified renter base can mitigate the risk of losing a tenant and provide a more stable income stream.


Branding and marketing

Short-term rentals also allow property owners to build a brand and market their property to a broader audience. Platforms like Airbnb and VRBO have large user bases. Property owners can leverage these platforms to market their properties to a global audience. Property owners can also create their website and social media presence to promote their property further and attract renters.


Greater control over renting conditions

With short-term rentals, property owners have greater control over the conditions under which they rent out their property. For example, they can set rules such as no smoking or no pets on the property, and they can also set check-in and check-out times. This helps protect the property and maintain a high standard of cleanliness and comfort for renters.


Reduced legal responsibilities

With short-term rentals, property owners have fewer legal responsibilities than with long-term tenants. For example, they don’t need to worry about eviction procedures or providing notice before raising the rent. However, property owners are also not responsible for maintaining the property to the same standard as required for long-term rentals.


Greater potential for repeat renters

With short-term rentals, property owners have the potential to attract repeat renters. This is because renters may return to the same location for vacation or business trips. This can build a loyal customer base and increase the likelihood of repeat bookings. Property owners can also offer discounts or special deals to repeat renters as an incentive to return.


Greater visibility

Short-term rentals through platforms like Airbnb and VRBO can provide property owners with greater visibility for their property. These platforms have large user bases and are widely used by people looking for vacation rentals. By listing their property on these platforms, property owners can expose it to a broader audience and increase the chances of renting it out. This can be especially beneficial for property owners who own a vacation home or a property in a popular tourist destination.


In conclusion, short-term rentals can be a valuable option for property owners looking to maximize their revenue, flexibility, and control over their properties. We recommend looking at short-term rentals on platforms like Airbnb and VRBO if you are considering renting out your property.


Contact us today to discuss why short-term renting is right for you.

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