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Short-Term vs Long-Term Rentals

Writer's picture: Janah SorianoJanah Soriano

Updated: Mar 28, 2023

Over the past few years, there has been a lot of excitement about owning a short-term rental as part of an investment portfolio. This marks a dramatic change from the traditional long-term rental model. As more travelers utilize vacation rentals instead of hotel chains for their trips, you may be wondering if owning a short-term rental may be the right situation for your needs.

Short-term rentals have caused a stir in many communities. Many full-time homeowners do not like having these properties in their neighborhoods. Unruly vacationers often bring a party atmosphere to their quiet streets and some cities have banned them completely.

In other areas, they are severely restricted in their use. Another consideration is the amount of time a short-term rental will take to manage. Unlike their long-term counterparts, short-term rentals often require more repairs and maintenance as the tenants do not treat these properties as their homes, as long-term tenants do.


Short-term rentals also require someone to be available 24/7 to address any needs of the guests. Of course, you can hire a property management company to handle these issues, but that will cut into profits and average 20%-30% of rents.

Short-term rentals can have a larger return on investment than long-term rentals, but they come with more work. They also have significantly higher vacancy rates, advertising costs, cleaning, and maintenance costs.


On the other hand, having a vacation property you can enjoy yourself may tip the scale. There is no one-size-fits-all approach to real estate investing. Consider what works for you and make the best choice for your goals.

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eXp Realty is a licensed real estate broker and abides by Equal Housing Opportunity laws. All material presented herein is intended for informational purposes only.  Information is compiled from sources deemed reliable but subject to errors, omissions, changes in price, condition, sale, or withdraw without notice. No statement is made as to the accuracy of any description. All measurements and square footage are approximate. Exact dimensions can be obtained by retaining the services of an architect or engineer. This is not intended to solicit property already listed. Office 800 Maine Ave SW Ste 200,  Washington, DC 20024 | o 833.335.7433

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