Apollo AdvisingAirbnb, medium-term, or long-term: comparing what you keep
How short-term, furnished medium-term, and long-term rentals compare on costs, time, and rules, with a worked example on the same house.
Short answer. Compare the three on net income after every cost and on the hours each one takes. Short-term rentals usually bring in the most gross revenue and carry the highest costs and risk. Long-term leases bring in the least and cost the least to run. Furnished medium-term stays of 30 days or more often land in between.
How the three differ
| Factor | Short-term | Medium-term | Long-term |
|---|---|---|---|
| Typical stay | A few nights | 30 days to several months | 12-month lease |
| Furnished | Fully, and stocked | Fully | No |
| Turnovers | Constant | A few a year | About one a year or less |
| Added costs | Cleaning, supplies, platform fees, utilities, higher management fees | Furnishing, utilities, some cleaning, listing fees | Vacancy between leases, leasing fees |
| Occupancy tax | Hotel occupancy tax on each stay, usually added to the guest's bill | Often none; Texas exempts stays of 30 consecutive days or more | None |
| Wear and tear | Highest: budget more for maintenance and replacements | Moderate | Lowest, though tenant damage still happens |
| Income swings | High, seasonal | Moderate | Low |
| Local rule risk | Highest; many cities restrict it | Often lower, since many ordinances target stays under 30 days | Lowest |
| Owner time | Close to a part-time job if self-managed | Moderate | Lowest |
A worked example
Here is one house run three ways. The numbers are illustrative, not a forecast for any market. Mortgage, property tax, and most insurance are left out because they are roughly the same in all three, though insurance for a short-term rental often costs more.
| Line | Short-term | Medium-term | Long-term |
|---|---|---|---|
| Gross rent | $39,420 | $30,000 | $25,300 |
| Cleaning and supplies | $6,000 | $600 | $0 |
| Platform and listing fees | $1,200 | $300 | $0 |
| Utilities and internet | $3,600 | $3,600 | $0 |
| Monthly fees (HOA, lawn, pool, pest) | $1,200 | $1,200 | $1,200 |
| Management (20%, 10%, 8% of rent) | $7,884 | $3,000 | $2,024 |
| Furnishing upkeep | $1,500 | $1,000 | $0 |
| Leasing and turnover | $0 | $0 | $1,100 |
| Maintenance (10% of rent) | $3,942 | $3,000 | $2,530 |
| CapEx reserve (5% of rent) | $1,971 | $1,500 | $1,265 |
| What is left | $12,123 | $15,800 | $17,181 |
Assumes short-term at $180 a night, 60% occupancy; medium-term at $3,000 a month, 10 months booked; long-term at $2,200 a month, 11.5 months leased. Maintenance and the CapEx reserve start at 10% and 5% of rent. Hotel occupancy tax (13% here) is added to each short-term guest’s bill, so it is not counted as a cost; if your nightly rate already includes it, it comes out of what you keep.
The short-term rental brings in about $14,120 more a year than the lease. After cleaning, fees, management, maintenance, and a reserve for capital items, it keeps $5,058 less, and it took the most time and carried the most risk. Change the occupancy, the nightly rate, or the market and the ranking can flip, which is exactly why the comparison has to be built for your property.
What to check before you switch
- City ordinances, permits, and occupancy taxes for stays under 30 days
- HOA rules and your insurance policy
- Furnishing cost and how long it takes to earn back
- Demand for 30-day stays nearby: hospitals, corporate offices, and insurance housing
- How many hours a week you are willing to give it
Where we fit
We build the three scenarios for your actual property and market, with realistic occupancy, and list the rules to verify before you commit. Denver has run short-term, medium-term, and long-term rentals in his own portfolio. More on choosing a rental strategy.
Want this run on your property?
$199 per hour, billed in 15-minute increments, or $499 for a three-hour block. The first 30 minutes are free.
Free guide: what would your Airbnb earn as a 30-day rental?
The five-step method from Denver's paid client reports, with a worked example and a fill-in worksheet. Covers cleaning fees, platform fees, breakeven rent, and the slow-month hybrid.
Go deeper
Short-term vs medium-term vs long-term calculatorCompare what the same property keeps under each rental strategy, with your own numbers.Texas short-term rental taxes and city rulesHotel occupancy tax, the 30-day exemption, and the DFW city rules to check before you list.Self-manage or hire a property manager?What managers charge, what you get for it, and how to price your own time honestly.How much to budget for maintenance and capital expensesPercent-of-rent rules, component lifespans, and a reserve schedule you can build in an afternoon.This page is general education, not legal, tax, investment, insurance, or lending advice. See our disclosures.