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STR vs LTR: Is the extra headache worth the cash flow difference?

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Kate_Bud
Joined:
11.12.2024
Posts: 1749
Topic Starter
25.03.2025 07:46
I am currently analyzing two investment properties and debating whether to go the short-term rental route or stick to traditional long-term leasing. While the projections for short-term rentals show a significantly higher monthly gross income, the added management costs and vacancy risks make me nervous. I'm trying to figure out if the net cash flow difference actually justifies the extra time and effort required to manage bookings and cleaning crews. Has anyone here made the switch from long-term to short-term recently, and did your actual bank account balance reflect the projected gains? I would love to hear some honest feedback on the reality of managing these properties.
14 replies in this topic
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Lara_N
Joined:
17.11.2021
Posts: 2492
02.04.2025 00:30
Honestly, it depends on your location. If you're in a prime tourist spot, STR is a goldmine, but if you're in a secondary market, the vacancy risk will eat your profits alive.
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Brian_Z
Joined:
12.11.2020
Posts: 316
03.04.2025 21:40
In reply to a previous post
I made the switch last year and honestly? I'm already looking to go back to LTR. The constant guest communication and turnover stress isn't worth the extra 20% margin.
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forum_expert
Joined:
13.10.2022
Posts: 233
15.04.2025 15:44
Don't forget to factor in the regulatory risk. My city just passed new zoning laws that basically killed half the STR market overnight. Stick to long-term if you want stability.
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jacek_pl
Joined:
17.08.2021
Posts: 1500
21.04.2025 13:20
In reply to a previous post
Exactly what @User3 said. Regulations can change in a heartbeat. I'd rather have a slightly lower return with a reliable tenant who pays on time for 12 months.
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anon_user
Joined:
31.05.2020
Posts: 379
24.05.2025 04:05
In reply to a previous post
It really comes down to whether you want a 'job' or an 'investment'. STR is definitely a part-time job unless you pay a property manager, which cuts into your cash flow anyway.
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monica_p
Joined:
20.04.2025
Posts: 1446
05.06.2025 04:42
I’ve been doing STR for three years and I love it, but I automated everything. Digital locks, professional cleaning service on speed dial, and pre-written message templates. It’s not that hard if you have the right systems.
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Stacy_B
Joined:
05.09.2020
Posts: 1280
09.06.2025 15:00
In reply to a previous post
Are you factoring in the extra wear and tear? My units get absolutely beat up by short-term guests compared to my long-term tenants who treat the place like a home.
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MrNobody
Joined:
01.04.2022
Posts: 932
29.06.2025 14:17
In reply to a previous post
I think the 'extra headache' is often understated. You’ll be dealing with 3 AM calls about the Wi-Fi not working or a guest who can't figure out the thermostat.
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JustAsking
Joined:
20.12.2020
Posts: 1445
02.07.2025 17:58
In reply to a previous post
Have you considered doing mid-term rentals instead? Think traveling nurses or corporate housing. Better margins than LTR but way less headache than Airbnb.
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Olivia_T
Joined:
23.01.2023
Posts: 1877
13.09.2025 19:26
In reply to a previous post
That's a great suggestion. MTR is the sweet spot for a lot of investors right now.
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Sophia_G
Joined:
19.04.2025
Posts: 1368
24.09.2025 03:48
In reply to a previous post
I tried the STR route and after taxes and cleaning fees, my net was barely higher than what I'd get from a reliable long-term tenant. Not worth the stress for me.
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Kate_J
Joined:
01.10.2025
Posts: 1734
14.12.2025 16:01
If you go STR, make sure you have a solid insurance policy. Standard homeowners insurance won't cover a lot of the weird stuff that happens with short-term guests.
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cris_r
Joined:
12.11.2020
Posts: 1003
27.01.2026 22:52
In reply to a previous post
I’m currently managing 4 STRs and I’m clearing about 30% more than when they were long-term. You just have to be willing to put in the work during the first 6 months to set up your operations.
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Hannah_B
Joined:
30.08.2024
Posts: 570
04.03.2026 12:03
In reply to a previous post
Thanks for the feedback everyone, this has given me a lot to think about before I sign the purchase agreement.

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