AirBnB vs Long-Term Lease ROI Calculator
Compare short-term rental income against traditional leasing to find which strategy delivers better returns for your property.
Current market value of the property
Monthly rent for a traditional 12-month lease
Average nightly rate after dynamic pricing
Percentage of nights booked (50-70% is typical)
Cleaning fee charged to guests
Average booking duration
HOA, maintenance, insurance, property taxes (excluding mortgage)
Extra utilities, supplies, higher maintenance for STR
What is the main difference between AirBnB and long-term lease ROI?
AirBnB (short-term rental) typically generates 2-3× more gross income per month than long-term leases, but has higher expenses: cleaning fees, higher utilities, more maintenance, vacancy risk, and platform fees. Long-term leases offer stable, predictable income with lower expenses and less management effort. The ROI difference depends heavily on your local market occupancy rates and regulations.
What occupancy rate should I assume for AirBnB?
Occupancy rates vary by location: top tourist markets (75-90%), average urban areas (50-70%), rural areas (30-50%). New listings typically take 3-6 months to reach stable occupancy. Be conservative in projections—use 50-60% for initial estimates. Seasonality matters: beach towns peak in summer, ski areas in winter. Check local median occupancy on AirDNA or similar platforms.
What expenses are unique to short-term rentals?
STR-specific expenses include: platform fees (AirBnB 3% host fee + 14% guest fee), professional cleaning ($60-150 per turnover), higher utility costs (+30-50%), furnishings and decor depreciation, toiletries and supplies, dynamic pricing software, higher insurance premiums (+20%), and potential property management fees (20-30% if outsourced). Also factor in higher wear-and-tear and more frequent maintenance.
When does long-term leasing make more sense?
Long-term leases are better when: local STR regulations are restrictive, your property is in a non-tourist area, you prefer passive income with minimal management, the rent-to-value ratio is strong (above 0.8%), or your local STR market is saturated. Long-term also avoids seasonal vacancy spikes and reduces furnishing/decorating costs by thousands of dollars.