Short-Term Rentals vs. Long-Term Leases — Which Is More Profitable?

Real estate investors often face a key question: should they rent their property short-term (Airbnb, Booking) or long-term (traditional lease)?

Both models have unique benefits and risks, and the right choice depends on the property’s location, market trends, and your investment goals.

 Advantages of Short-Term Rentals

Higher returns — nightly rates can far exceed monthly rents.
Flexibility — you can use the property yourself between bookings.
Ideal for tourist hotspots like downtown Budapest or Dubai Marina.

However, short-term rentals require more management, cleaning, marketing, and are subject to seasonal demand and regulatory changes.

 Advantages of Long-Term Leases

Stable income — predictable monthly revenue from fixed contracts.
Low maintenance — fewer tenant changes and lower operational costs.
Reduced risk during market downturns.

On the downside, returns are usually lower, and the property is less flexible during the lease period.

 Conclusion

Short-term rentals deliver higher profits and flexibility — ideal for active investors.
Long-term leases offer stability, lower risk, and minimal involvement — perfect for passive income seekers.

A hybrid approach — short-term during high season and long-term during off-peak periods — can combine the best of both worlds.