When you have a property to rent out, do you want it to be a long-term rental or a short-term Airbnb?
Both models offer compelling advantages, but they also come with very different operational demands, financial outcomes, and risk profiles. The right choice depends on a mix of factors: your property’s location, your financial goals, your appetite for hands-on management, and how much consistency or flexibility you want in your income stream.
Short-term rentals, often managed through platforms like Airbnb or Vrbo, promise higher nightly rates, flexibility in usage, and the opportunity to capitalize on seasonal or event-driven demand. But they also come with greater volatility, more intensive day-to-day management, and exposure to local regulatory changes. Long-term rentals, on the other hand, typically offer steady monthly income, less operational overhead, and lower vacancy risk, but often at the cost of a lower annual return and less pricing flexibility.
As professional property managers who work in both the short-term and the long-term rental markets, we are looking closely at the key differences between each strategy. We help investors consider profitability and operating costs as well as tenant turnover and risk.
Whether you’re buying your first property or rethinking how to use an existing one, understanding these dynamics will help you make a more informed, strategic decision.
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Short-Term Rentals in Florida
There’s plenty of demand for short-term rentals in Florida, whether you have a beach house in Bradenton or a condo in Orlando. People are constantly flying into the area, and they’re looking for long weekends, extended vacations, and even entire seasons that can require a full month’s rental. There are also business travelers and professional stays that are better suited for a private home than a hotel. The demand for short-term rental housing is not a problem, and that’s why this is an attractive option for investors concerned with earnings potential.
Here’s a look at a few benefits and potential challenges to renting out a short-term Airbnb in our market.
- Owners Have Flexibility
Short term rental properties are a benefit to property owners because they provide flexibility. If you’re renting out your own home because you’re leaving the area temporarily, you might want to come back to the property within a year. Maybe you want to use this home part of the time. Knowing that you’ll be able to easily move back into your own property can be a relief, and you’ll also have the opportunity to earn some money while you’re not actually living in that home. In a scenario such as this, short-term renting makes sense. Owners who want to use the home themselves once in a while can block out the days or the weeks that they will want to settle into the home. That’s impossible with a long-term lease.
Short term leases will allow property owners to get the home back when they are ready. In a long-term situation, you’d have to wait out the lease. If you’re an investor who doesn’t like long-term commitments, the flexibility of a short-term rental is an important advantage.
- Higher Per-Night Rates
Another benefit to renting out property in the short term is that owners can typically charge more for the home if it’s rented for a shorter term. A lot of landlords do really well renting their property out as seasonal rentals or short term stays, and they generate great cash flow. The nightly or weekly rate that’s charged on a short-term rental is often double or even triple what can be charged per-night on a long term rental. This can be an important benefit to owners who care more about immediate cash flow and less about long-term ROI and stability for their investment property.
Flexibility and higher nightly rates are really good reasons to stick with short-term Airbnbs. But there are, of course, drawbacks to short-term rentals that rental property owners need to be aware of before pursuing this sort of investment.
- Frequent Guest Turnover
One drawback to renting a Florida property out for a short term is that it requires more work from you. Owners must be responsive to those frequently changing renters. There could be five different guests staying at the property in the course of a single week. There’s also the time required in marketing a short-term rental; you’ll have to locate new tenants and move them in every few days, weeks, or months. You’ll need to handle the rental agreements and make sure the property is in good condition during each turnover.
The intense ongoing maintenance, cleaning, and care can be a lot. When it’s too much, professional property management is essential. Or, a short term lease might not be best.
- Vacancy Throughout the Year
Vacancy is another concern. While Florida has high demand for short-term properties, the rental won’t always be occupied, and that can create some instability and revenue loss. If you earn $7,500 a month when the property is mostly occupied, a month where no one is booked will feel pretty desperate.
When you take all that vacancy you’re incurring over the long haul, it will add up to a lot of money that you would have saved had you locked in a tenant for a 12-month term.
- Furnishing a Short-Term Rental in Florida
Owners will do well to think about the amenities and the furniture that they’ll need to provide. Short-term rentals need to be furnished not only with the big-ticket items like sofas and beds, but also with any amenities and appliances that their guests may need. That includes cooking supplies, linens, coffee makers, tea kettles, and televisions. It’s important to have all the utilities kept on and services like cable and Wi-Fi included. These are extra expenses that need to be worked into your budget. Not only do you have to provide these things, you also have to replace them when they get old or damaged.
Long-Term Lease Agreements for Florida Rental Properties
If the Airbnb option seems a bit too uncertain, consider long-term lease agreements. In Florida, these are likely to be for a period of at least one year. Some landlords will approve a tenant for a different term, maybe nine months or 10 months or 18 months. Whatever the lease term, it’s for more than 30 days, and it’s a structured lease contract that bestows certain rights and responsibilities upon both landlords and tenants.
Long-term rentals are almost always unfurnished properties, and tenants will usually be expected to set up and maintain their own utility accounts. There’s a lot less turnover throughout the year; you’re renting to one specific tenant or group of tenants.
As you’re comparing long-term rentals to short-term rentals, be aware of the following benefits to a long-term lease agreement:
- High Demand Year-Round
Well-maintained homes in desirable locations are in high demand throughout the Florida rental market. The supply is not exactly keeping up with the demand, especially now, when tenants are putting off home purchases until interest rates come down and more residents are moving into the area. There is a healthy pool of qualified renters, which means you can count on consistent profitability. There’s less hustling to find the next renter, as there is with a short-term rental.
- Stability for Investment Properties
Long-term tenants provide stability for your Florida property. There’s less cleaning that needs to be done, and the wear and tear usually isn’t as intense because instead of a revolving door of guests, you have consistent people in place for a year or longer.
There doesn’t mean that long-term rentals don’t come with their own set of challenges. These are some of the reasons that investors prefer to stick with short-term properties.
It starts with earnings. Doing the math can be discouraging with a long-term rental, especially when compared to what a short-term property can potentially earn. There’s not going to be as much money coming in per-night. While your monthly rent will be comfortable and predictable, especially as rents are rising, a short term rental can bring in a lot more money per night.
You’re also locked into the legally binding lease agreement. If you decide you want to move into the home yourself but the tenant still has seven months on the lease agreement, you’re going to find that it’s practically impossible. You don’t have the same kind of flexibility.
Landlord and tenant laws apply to long-term homes as well. Florida is more or less a landlord-friendly state. We don’t have rent control and evictions are pretty straightforward. But, there are still laws that need to be followed. When you rent out a home for the long-term, you’ll need to know security deposit laws and timelines. Habitability standards need to be enforced and you must pay attention to fair housing.
We don’t have one single answer for whether the short-term Airbnb vacation rental or the long-term lease agreement is best for you. Let’s take a look at your investment goals and your property. We’ll help you make the right decision. Contact us at Anchor Down Real Estate and Rentals.
