Short-term or long-term lease?

Short-term or long-term lease?

The real estate market offers two main options: short-term lease (Airbnb) and long-term lease. The decision depends on factors such as location, return on investment and available management time.
 

Short-term lease – Airbnb

• Higher returns: Daily lease rates through Airbnb are typically higher than the equivalent monthly rent of a long-term lease, generating more revenue.
• Flexibility: The owner can rent the property whenever they want, leaving room for personal use.
• Price adjustment: The price can fluctuate according to demand, e.g., higher prices during tourist seasons or events.
   

Long-term rental

• Fixed income: The owner knows in advance the rent he will receive each month, with no surprises.
• Less management: The landlord does not have to deal with the property on a daily basis, as maintenance is largely passed on to the tenant.
• Less tax burden: Taxes and costs are usually lower than with a short-term lease.
• Less risk of damage: Long-term tenants take more care of the property as they consider it their home.
   

The importance of location

The choice between short-term and long-term leasing depends very much on the location of the property. In tourist areas or areas with high demand for short-term accommodation (e.g. city centres, islands, coastal areas), Airbnb can offer significantly higher returns. On the other hand, in areas where there is a higher demand for permanent residence, long-term lease is a safer and more stable option.

Conclusion

If you are looking for fast and high income and have time to manage, Airbnb is the best option. However, if you prefer a steady income with fewer requirements, then long-term lease is more suitable. The right decision depends on your personal priorities and the characteristics of your property, with location playing a key role in your property management strategy.