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Airbnb vs Long-Term Rental

Compare monthly cash flow for one property run as an Airbnb and as a long-term rental, and see the occupancy the Airbnb needs to match the lease. It is free and needs no signup.

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How the Airbnb vs long-term rental comparison works

The calculator runs the same property two ways: as a short-term rental booked by the night and as a long-term rental leased by the month. It compares monthly cash flow after expenses and financing, the cash each strategy needs up front, and the occupancy the short-term rental needs to match the lease.

What usually decides it

  • Revenue. The short-term rental earns the nightly rate times booked nights. The lease earns one monthly rent. Short-term income moves with occupancy and season, while lease income stays steady.
  • Expenses. A short-term rental usually pays for cleaning on each turnover, utilities, supplies, platform fees, short-term rental insurance, and furnishing. Tenants on a lease usually pay their own utilities and bring furniture.
  • Time. Guest messages, cleaning schedules, restocking, and pricing take ongoing work or a manager's fee. A lease needs attention mostly when tenants change.
  • Rules. Many cities require permits, limit rentals that are not the owner's home, or ban short stays. Check the market rules before counting on short-term income.

When each one fits

Short-term renting fits travel markets where the rules allow it and you can manage guests or pay someone who will. Long-term renting fits better when you care more about steady income and light management, or when local rules are restrictive or unsettled.

Test a downside case by lowering occupancy and the nightly rate. If a small miss erases the short-term advantage, the lease may be the better risk. The break-even occupancy guide and cash-on-cash return guide explain how to read the result.

Frequently asked questions

Which is more profitable: Airbnb or long-term rentals?
It depends on your market, your property, and how you manage it. In some markets Airbnb brings in more gross revenue than a lease, but it also has higher expenses and takes more management work. This calculator compares net cash flow using your numbers.
What occupancy rate do I need for Airbnb to beat long-term rental?
It varies by property. The calculator shows the occupancy rate your Airbnb needs to match the long-term rental's cash flow with your inputs.
What are the main differences in expenses between Airbnb and long-term rentals?
Airbnb adds platform fees, cleaning on each turnover, supplies, and furnishing. Guests also push utilities higher, and management fees are usually higher. A long-term rental has fewer expense lines, and tenants usually pay their own utilities.
Should I include furnishing costs in my Airbnb analysis?
Yes. Furnishing is a large upfront cost unique to Airbnb. The calculator adds it to your total cash invested when it calculates Airbnb cash-on-cash return.
How do I estimate Airbnb revenue and occupancy for my market?
Look at comparable listings on Airbnb and VRBO, use a market data tool like AirDNA, or talk to local property managers. Keep your estimates conservative. Underestimating is safer than overcommitting to a property.