Better in tourist areas?

Yes \u2014 tourist destinations consistent 70%+ occupancy.

Yes \u2014 fixed rent vs variable bookings.

Mid-term rentals (1-6 month) \u2014 less work, regulation-friendly.

Taxes \u2014 different?

STR potentially passive activity loss rules; LTR generally passive.

Need different insurance?

Yes \u2014 STR rider $200-500/year extra.

Airbnb vs LTR ROI 2026

STR (Airbnb): 60-80% occupancy, 50-100% higher gross than LTR. But +30% expenses, 10-30 hrs/week mgmt, regulation risk.

LTR Monthly Rent ($)

STR Avg Nightly Rate ($)

STR Occupancy %

STR Monthly Expenses ($)

LTR Monthly Expenses ($)

LTR Net Annual

—

STR Net Annual

—

Difference

—

STR % More

—

Per Extra Hour

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LTR gross	—
STR gross	—
LTR expenses	—
STR expenses	—
LTR net	—
STR net	—
Difference	—
Percent more STR	—
Per extra labor hour	—

Short-term rentals (Airbnb, VRBO) typically generate 50-150% more gross income than long-term rentals — but with 4-8x the work, higher expenses, and regulation risk. This comparison shows true net advantage and hourly compensation.

STR Cost Breakdown

Cleaning ($75-150/turnover, 30-60 turnovers/year). Supplies (towels, toiletries, paper). Higher utilities. Property management (15-30% if outsourced). Marketing/listing fees (3% Airbnb host fee). Vacancy maintenance. Insurance (STR rider needed).

Time Investment Reality

STR: 15-25 hours/week for active manager. Reviews monitoring, guest communication, cleaning coordination, restocking, maintenance issues. LTR: 2-3 hours/month average. Don't compare gross — compare net per hour invested.

Regulation Risk 2026

NYC, San Francisco, Los Angeles, Barcelona, Lisbon, Vienna — major restrictions. New York City Local Law 18 (2023) banned non-hosted STRs <30 days. Always verify local rules. Risk: $20K-$100K fines + forced shutdown wipes ROI.

Last updated May 2026. Sources: AirDNA STR Market Data.