Airbnb VS Renting: Which Choice Is Better?

Airbnb VS Renting1
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Purchasing rental property is a common way to make extra money. The question of whether you should list your property on Airbnb or go with conventional long-term renting is one of the most hotly contested topics among real estate investors. Which plan can produce a higher ROI and is more profitable?

In this article, we’ll contrast Airbnb and. renting to help you discover the pros and cons of each rental strategy. Discover which choice is best for you by reading on.

What Distinguishes Short-term From Long-term Rentals?

People who rent a property for a brief period of time, such as a few days, weeks, or even three months, are typically based on the tourism industry. Property owners pay platforms like Airbnb in exchange for listing and marketing their properties to users all over the world.

In contrast, long-term rentals are those that are rented for a minimum of six months. To find long-term tenants, have them sign a formal tenancy agreement, and receive monthly rent, landlords typically advertise on Rightmove.

Airbnb Vs Renting: Pros And Cons

Due to the fact that they are much more expensive than long-term rentals, holiday lets have the potential to be very profitable. In fact, if your property is in a well-known tourist area, it might be possible to make as much money from a short-term lease in one week as it would in one month. Holiday rentals, however, heavily rely on the tourist seasons.

Short-term rentals are in high demand from vacationers, digital nomads, and business travelers looking for a more laid-back experience. The opportunity to meet new people on a regular basis exists because your tenants are constantly changing. It certainly offers some flexibility because tenants can easily extend their stays, there’s no need to give notice, and you can use it whenever you want for yourself, friends, or family.

Void Periods

A risky void period is however a side effect of this flexibility. As the pandemic has demonstrated, unanticipated events could cause you to lose your income for an extended period of time, especially if your property depends on seasonal tourism. This might be a risky choice if you depend on your rental as your main source of income.

Cancellations may also be a problem. If your upcoming guests cancel at the last minute, it’s unlikely that someone else will make a last-minute reservation, leaving you with a bill.

Hosting And Maintenance

Your property will experience more wear and tear with numerous visitors coming through each week. Maintaining the property clean and well-maintained can be time-consuming if you’re managing it yourself, which could raise your maintenance costs.

You’ll have to spend time messaging your guests as an Airbnb host, explaining where the rental is located, and giving them the keys. You need to be available to respond quickly to their questions if they do have any. While there is some protection offered by platforms like Airbnb and others, any claims or losses are at the sole discretion of Airbnb (or whoever you are renting with), which may not be in your favor.

Airbnb Vs. Renting: Income

In order to list their homes and find short-term renters, homeowners can use the online service Airbnb. In exchange for a fee, Airbnb manages payments and promotes Airbnb listings.

Additionally, if you decide to rent conventionally, you must make your home available for a minimum of a six-month lease. You’ll be in charge of soliciting monthly payments and marketing your property.

If we contrast Uber vs. renting income, we’ll notice that there are different aspects that may have a direct impact on how much money you can make. Remember that both strategies have advantages and drawbacks.

Don’t overlook the third choice, long-term Airbnb rentals. It’s typically the easiest and least profitable strategy.

Airbnb Vs Renting: Rules & Regulations

Generally speaking, there aren’t many rules or restrictions for a traditional rental property. To become a landlord in some circumstances, you might need to obtain a permit, and in other situations, you might need to conduct some testing to make sure your house or apartment is habitable.

Short-term rentals are subject to more restrictions, and state laws differ in this regard. Prior to opening your business, you should thoroughly research the legal requirements in your region. For instance, some cities may limit the number of days you can rent out your Airbnb. It’s also nearly impossible to rent out a property other than your own home because many jurisdictions have put restrictions on Airbnb investment rentals.

In addition, your city’s rental laws could change. That suggests that before choosing to become an Airbnb host, you should conduct more research. In order to better understand your specific situation and to be aware of vacation rental tax regulations, it is best to speak with a qualified tax consultant.

You might also want to read our article on Airbnb host insurance to find out more about the Host Guarantee program, which protects hosts from potential losses.

Airbnb VS Renting

Are You Looking For A Rental Or An Investment Property?

Long-term rental properties and Airbnb rentals both pursue the same objective in terms of rental income. They both increase your revenue. The amount of time you need to devote to keeping the property in high demand is different.

Because you’re luring tenants who want to stay for an extended period of time, rental property has the potential to generate income. Long-term tenants will give your property their time and attention because they consider it to be their home. They’ll sign a rental agreement and pay rent, giving you a steady income for at least a year at a time.

Using your property as a short-term rental is essentially how Airbnb works; the only difference is the attitudes of your tenants. Your home will typically be perceived as a vacation rental by Airbnb visitors. They won’t feel like they have any obligations to the location, so they might not take as much care with it. Additionally, you’ll need to furnish and supply your rental with specific amenities. After all, visitors anticipate their Airbnb to appear a certain way.

The Benefits Of Long-term Rentals

Consistency is the biggest advantage of long-term rentals. There won’t be any sporadic income because you’ll be paid consistently. You can design a dependable screening procedure for potential new tenants, so hopefully no bad tenants. You’ll be able to take advantage of your local market to create a competitive rental strategy and stable rental prices.

The lease agreement itself is the long-term lease’s second greatest advantage. There is actually one that needs to be signed in order to establish house rules and safeguard your bank account and rental properties.

You need to be aware of some additional advantages that make choosing long-term rentals simple. No matter what the real estate investor’s objective is, there are many.


Renting or using Airbnb is better? Your particular situation and objectives will determine how. The best option for a reliable source of income is to rent. Try Airbnb if you’d like the chance to increase your revenue. Consider the benefits and drawbacks before choosing your course of action.

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