5 Reasons Why Airbnbs Are Better Than Long-Term Rentals
Written by
Marc Guberti
Edited by
Rebekah Evans
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Real estate investments tend to gain value, acting as valuable hedges against inflation. Although you’ll have to contend with mortgage payments, you can get some help. Having other people live in the property can cover the monthly payments. However, real estate investors are grappling with which types of tenants to bring into their properties.
Some investors are gravitating toward short-term rental platforms like Airbnb, while others prefer long-term rentals. However, there are several experts who believe that Airbnbs are the better choice. This guide will explore some of the reasons that Airbnbs can be a better idea than long-term rental properties.
Airbnb Makes More Money
Deborah Foley, home energy specialist and public relations manager with SolarReviews, said she is also an Airbnb superhost who has been in the rental property industry for five years. When she crunched the numbers, she saw that she made more money with the Airbnb model than a long-term rental approach.
“Even taking into consideration the fees that are paid to Airbnb, there is a substantial difference in the amount of money that can be made. In 2024, we saw an almost 60% increase in revenue from 2023 with a single property. This was due to a shift in focus. In 2023, we took on three long-term stays (30 days or longer) through Airbnb and have not taken any stays longer than 14 days in 2024.”
The Property Goes Through Less Wear and Tear
Foley also cited reduced wear and tear as a perk for Airbnb investors compared to long-term rental properties.
“Many guests are staying for the weekend or spending even just a night at the property. This means appliances are used less frequently, heating and cooling costs are cut down and even furniture sees less use. Having someone fully living in a space 365 days out of the year is always going to wear things down faster than someone who may simply be looking for a place to sleep for the night.”
It’s Easier To Secure Financing for Airbnbs
Real estate investors have many ways to secure financing for a property. However, Airbnbs offer an edge if you are looking for a Debt Service Coverage Ratio (DSCR) loan. Rany Burstein, CEO and founder of Diggz, a roommate and rental search platform, is also an experienced real estate investor. His portfolio includes short-term and long-term rentals. He explained how Airbnbs give borrowers an extra advantage when they are applying for a loan.
“Financing is another plus. For investors, DSCR loans make it easier to secure financing if the projected income from short-term rentals is sufficient, even if your personal income isn’t high enough to qualify for traditional loans,” he said.
Airbnbs Have Lower Tenant Risk
Every real estate investor‘s worst nightmare is a tenant who damages their property and doesn’t pay rent. Luckily, this scenario is less likely for Airbnb properties, as Burstein explained.
“With long-term rentals, you might face non-payment of rent and lengthy eviction processes that can drag on for months,” he said. “Airbnbs eliminates this concern with upfront payments and shorter stays.”
The Property Remains in Better Condition
Dave Cordner, founder of Central Belfast Apartments, a company that manages more than 75 Airbnbs, has been in the industry for 15 years. He also has a YouTube channel that teaches people how to set up and run Airbnbs.
While some people see the cleaning fee as an obstacle that bites into profits, Cordner explained that the extra care increases the likelihood that a property stays in good condition, protecting your equity in the process.
“Airbnbs are professionally cleaned multiple times per week and any maintenance issues are corrected immediately so the property itself remains in much better condition than if tenants were living in it.”
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