When is short-term rental better than long-term rental?
2023-12-18 / Facebook

The decision to rent a property may be a key moment for owners who want to use their assets to generate income. Traditional long-term rentals have been the main solution for years, but short-term rentals are becoming more and more popular and bring great benefits. So how do you determine when short-term rentals are better than long-term rentals?

The location of the apartment is crucial for choosing between short-term and long-term rental

Short-term rental will be attractive only for apartments located in attractive tourist locations. These include tourist destinations by the sea, in the mountains, and by lakes. Short-term rental is also an excellent option for apartments in large, attractive tourist cities, especially in districts close to the center or popular attractions.

If your property has less potential for tourists, short-term rentals will be a better option.

Gdańsk Real Estate Operator

Higher earnings

Short-term rentals often generate higher earnings than long-term rentals. Shorter rental periods allow you to adjust prices to the current market situation, as well as increase profits during periods of high demand, such as the tourist season or cultural or sports events in the area.

Time flexibility

One of the most important advantages of short-term rental is time flexibility. For owners who want to be able to use their property during specific periods, short-term rentals provide this option. This allows you to adapt to the changing needs of the owner without the need for long-term lease contracts.

Accessibility for guests

For people looking for short-term accommodation, the short-term rental offer may be more attractive due to availability. By offering their property for a short period of time, the owner can attract a variety of guests, such as tourists, business travelers and family visitors. Private apartments have become a major competitor to hotels in recent years and are often more willingly chosen by tourists.

Greater control over the property

Short-term rentals give the owner more control over the property. The ability to regularly check the condition of the premises, more frequent maintenance and renovations, as well as access to guest opinions allow us to maintain a high standard and better manage the property.

When is long-term rental still attractive?

While short-term rentals have many benefits, there are situations where long-term rentals may be more beneficial. For people looking for stability and certainty of regular income, long-term renting may be more suitable. If you do not want to use the services of a management company, then long-term rental will be almost "maintenance-free". However, long-term rental carries a greater risk when the tenant is in arrears with payments and does not want to leave the apartment. Unfortunately, the law is strongly on the tenant's side here.

Short-term rental has many advantages, but the decision to choose between short-term and long-term rental should be individual and depend on the needs and goals of the property owner. Flexibility, potentially higher earnings and greater control over the property are the main arguments for the benefits of short-term rental. However, the stability and convenience of a long-term lease also have their advantages, which may be important for some people.

Ultimately, the choice between short-term rental and long-term rental depends on the owner's preferences and the specificity of a given property and the local rental market.