Vacation Rental vs Long-Term Calculator
Compare short-term vacation rental income vs traditional long-term rental strategy. Calculate ROI, cash flow, and time investment for both options.
Strategic Decision Tool
Vacation rentals can generate 1.5-2.5x more gross income but require 40-50% operating costs vs 25-35% for long-term. This calculator shows which strategy maximizes YOUR net profit based on your property and management approach.
Property Details
🏖️ Vacation Rental (STR)
Income
Typical: 50-75% (varies by season/location)
Operating Expenses
Typical: 20-30% (0% if self-managed)
Electric, gas, water, internet, cable
Toiletries, linens, kitchen items, welcome gifts
Airbnb, VRBO, etc. (typically 3-5%)
🏠 Long-Term Rental (LTR)
Income
Typical: 90-98% (assumes minimal vacancy)
Operating Expenses
Typical: 8-12% (0% if self-managed)
Tenant Pays:
- ✓ All utilities (electric, gas, water)
- ✓ Internet and cable
- ✓ Renter's insurance
- ✓ Minor repairs (typically)
Shared Expenses (Both Options)
STR insurance typically 20-40% higher
Typical: 1-2% of property value
Leave blank if paid off
Your Comparison Results
🏖️ Vacation Rental
237 nights booked (65% occupancy)
178.6% of gross income
After mortgage payments
🏠 Long-Term Rental
11 months occupied (95% occupancy)
0.0% of gross income
After mortgage payments
Operating Expense Breakdown
🏖️ Vacation Rental Expenses (40-50%)
- • Management: 20-30% of gross income
- • Cleaning: $50-150 per turnover (high frequency)
- • Utilities: $200-400/month (owner pays all)
- • Supplies: $100-300/month (constant replenishment)
- • Platform Fees: 3-5% of bookings
- • Maintenance: 25% higher than long-term
🏠 Long-Term Rental Expenses (25-35%)
- • Management: 8-12% of gross income
- • Cleaning: None (tenant responsibility)
- • Utilities: $0 (tenant pays)
- • Supplies: None needed
- • Platform Fees: Minimal (one-time listing)
- • Maintenance: Standard 1% of property value
Time Investment & Management
⏰ Vacation Rental: Active Management
10-20 hours/week if self-managed
- • Guest communication (daily)
- • Check-ins/checkouts (multiple per week)
- • Cleaning coordination (after each stay)
- • Maintenance response (24/7 availability)
- • Listing optimization (ongoing)
- • Review management (continuous)
- • Calendar and pricing updates
Or pay 20-30% for professional management
😌 Long-Term: Passive Management
2-5 hours/month if self-managed
- • Tenant communication (monthly or as needed)
- • Annual lease renewals
- • Quarterly inspections
- • Standard maintenance requests
- • Minimal annual marketing
- • Simple rent collection (automated)
- • Annual tax documentation
Or pay 8-12% for professional management
Pros & Cons: Making Your Decision
Which Strategy is Right for You?
🏖️ Choose Vacation Rental If:
- ✓Property is in a tourist/vacation destination
- ✓You can achieve 60%+ occupancy year-round
- ✓You have time for active management (or budget for 25-30% fees)
- ✓You want to use the property personally
- ✓Local regulations permit short-term rentals
- ✓You're willing to handle seasonal fluctuations
- ✓Maximizing gross income is your priority
🏠 Choose Long-Term Rental If:
- ✓You want passive, predictable income
- ✓Limited time for property management
- ✓Property is in a non-tourist residential area
- ✓You prefer stable, year-round cash flow
- ✓Lower operating expenses are important
- ✓You want easier financing options
- ✓Less stress and fewer tenant interactions preferred
Regulations
Many cities restrict or ban short-term rentals. Check local ordinances, HOA rules, and zoning laws before deciding. Fines can be $1,000+ per violation.
Financing
Lenders often require higher down payments (25-30%) and charge higher rates for vacation rental properties. Long-term rentals qualify for standard investment property loans.
Market Risk
Vacation rentals are sensitive to economic downturns, seasonal changes, and oversupply. Long-term rentals offer more stability during market fluctuations.