Short-Term vs. Long-Term Rentals: Weighing the Pros and Cons
Investing in rental properties can be a powerful way to build long-term wealth—but success depends on choosing the right strategy for your lifestyle and financial goals. Should you rent your property short-term on Airbnb or Vrbo? Or stick with traditional long-term tenants?
With over 30 years of experience managing both short- and long-term rentals in Douglas County and throughout the Lake Tahoe region, I’ve seen how investor outcomes vary dramatically based on approach, location, and involvement level. Below, I break down the pros and cons of each rental model so you can make an informed decision.
Short-term rentals are typically listed on vacation platforms like Airbnb and Vrbo and rented out nightly or weekly. In Douglas County, Nevada, any lease under 28 days is considered short-term—and subject to specific permitting requirements.
Higher Income Potential – STRs often generate significantly more revenue per month, especially in tourist destinations like Lake Tahoe.
Owner Flexibility – Use the property for personal stays, adjust pricing based on demand, or block off dates when needed.
Tax Advantages – Deductible expenses can include cleaning, furnishings, supplies, and utilities.
Dynamic Pricing – Adjust nightly rates around peak seasons, events, or local demand trends.
Unpredictable Occupancy – Seasonal dips can create unstable cash flow.
Higher Costs – More frequent cleanings, turnovers, and property management fees (typically 20–30%) can cut into profits.
Regulations & Licensing – STRs are heavily regulated in many areas. Permits and zoning compliance are mandatory.
Time-Intensive – Managing guest communication, check-ins, and emergencies often feels like running a hospitality business.
Expert Tip: Use platforms like PriceLabs or Beyond Pricing to automate competitive nightly rates and maximize profitability. And always prioritize the guest experience to earn five-star reviews and repeat bookings.
Long-term rentals are leased for 28 days or more, which means they’re exempt from STR permitting rules in Douglas County. While income may be lower than STRs, the tradeoff is lower turnover, fewer headaches, and more predictable returns.
Consistent Cash Flow – Leases typically lock in monthly income for 6–12 months or longer.
Lower Management Needs – Fewer turnovers mean less day-to-day involvement and expense.
Tenant Responsibility – In most cases, tenants pay utilities and handle minor maintenance.
Fewer Legal Hurdles – LTRs avoid many of the permitting and taxation issues tied to vacation rentals.
Equity Growth – With rental income covering mortgage and expenses, you build wealth while holding the asset long-term.
Fixed Income – Lease terms limit your ability to adjust rent with changing markets.
Less Control – You can’t inspect or access the property as frequently.
Slower Appreciation – Revenue growth is typically limited by rent control or market rates.
Tenant Risk – Problem tenants can cause damage, pay late, or require costly evictions.
Nevada Bonus: Unlike states with strict tenant protections, Nevada offers a more streamlined legal path for resolving payment issues and evictions, making it more favorable for landlords.
If you want more income than LTRs but less turnover than STRs, consider mid-term rentals (30–90 days). They’re perfect for:
Traveling nurses
Remote workers
Relocating families
Platforms like Furnished Finder, Landing, and Airbnb’s monthly rentals can help fill these gaps. Plus, they often bypass hotel taxes and STR regulations.
Pro Tip: Offer furnished units, flexible lease terms, and utilities included to attract high-quality mid-term tenants.
| Factor | STR | LTR |
|---|---|---|
| Income Potential | High (but seasonal) | Moderate (but steady) |
| Time Commitment | High | Low |
| Legal Requirements | Strict in many areas | Fewer |
| Ideal Location | Tourist zones (e.g., Lake Tahoe) | Suburbs, family areas |
| Management Required | Daily or weekly | Monthly or less |
If you decide to pursue short-term rentals, follow these best practices to boost success:
Automate Operations – Use tools like Hospitable or Guesty to manage messaging, bookings, and check-ins.
Professional Cleaning & Maintenance – Fast, reliable turnover is essential for keeping reviews high.
Dynamic Pricing – Use software to optimize nightly rates.
High-Quality Listings – Invest in professional photos, well-written descriptions, and strong headlines.
Screen Guests – Require valid IDs, deposits, and consider tools like NoiseAware to protect your investment.
Stay Compliant – Understand Douglas County’s STR permit process and zoning requirements.
Expert Tip: Treat your rental like a business—not a side hustle. That mindset leads to higher returns and better guest experiences.
Ultimately, the “right” investment strategy depends on your goals, time availability, and risk tolerance.
Want higher returns and can commit the time? STRs are a great fit.
Prefer passive income with fewer headaches? LTRs may be your best option.
Looking for balance? Try a mid-term model tailored to mobile professionals and transitional families.
With over 30 years of experience in both short- and long-term rentals, I’ve helped clients navigate every market cycle. Whether you’re just getting started or refining your current portfolio, I’m here to help you succeed.
Every investor has different goals—and I’d love to help you align your strategy to meet them. Whether you're aiming for passive income, higher returns, or portfolio diversification, reach out for a personalized consultation.
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