Airbnb vs Renting: Which Option is Best?

As a result of the coronavirus pandemic, the Airbnb vs. traditional renting debate received more attention. Long-term rentals can provide more security in an uncertain time, but at the price of flexibility. Find out about the pros and cons of renting vs. Airbnb.

The Airbnb vs. renting debate is one of the main discussion points among real estate investors and with very good reason. The vacation home rental market is very lucrative. In 2019 alone, revenue in the industry added up to $17,5 million. According to VRM Intel, 45% of investment property buyers bought a property to generate an income through renting it out as opposed to flipping it. Though, considering that short-term rentals do not offer the same regular income, is the risk worth it?

Now, amid the pandemic, this question about which investment approach can yield the best income has become even more vital. With international travel taking a backseat, will domestic travel be enough to sustain Airbnb properties? In this article, we’ll help you identify the best investment strategy for your business.


If you own property, you have options. There are a variety of ways to generate steady cash flow from your real estate holdings. Renting is one of the most obvious ways to earn money from your property, but some owners prefer listing their short-term rentals on Airbnb.  However, local regulations against home-sharing are becoming more common, so Airbnb hosting has its own set of unique challenges.  If you compare Airbnb vs renting, there’s a variety of factors you need to consider.


Airbnb vs Renting: Main Differences


Airbnb vs renting, which option is better? Both have distinct advantages and disadvantages. It is important to carefully consider your options and choose the method that best fits your lifestyle, goals, and financial needs. 



Airbnb is a third party platform that helps hosts list their properties for short term use. Hosts can list a variety of property types, including houses, rooms, apartments, villas, and even yachts. Airbnb promotes your listing and handles payments, so all you have to do is list your property. 



A traditional rental listing is a part of a long term investment strategy and involves listing your property for a rental term of 6 months or longer. As a landlord, you are responsible for promoting your rental and collecting rent. Some landlords choose to hire a third-party property management company to handle all aspects of the rental process. 


Airbnb vs Renting: Pros and Cons 

If you are considering listing your property, it is a good idea to consider the pros and cons of each option. Are you looking for a more consistent income? Are you hoping to maintain some usage of the property? These are just a few things to consider.


Airbnb Pros

Airbnb offers a lot of flexibility for owners. Owners have the option of renting out a spare room or even the whole house. And because Airbnb offers short term rentals, hosts have the option of when they want to make their property available. Airbnb also allows hosts the ability to customize their listing with a detailed description and pictures.  Here are some other benefits and disadvantages of listing your property with Airbnb.


Term Flexibility

If you are looking to rent out your property part-time, Airbnb is a good option. Airbnb is perfect for homeowners who own a second home as a vacation home. This allows owners the ability to also utilize their property when they like.


Pricing Flexibility

Owners also have the option to set their own rates on Airbnb. This allows owners to set rates dynamically to meet demand in the area and also meet their financial goals. With a traditional rental, the price is set according to the lease agreement, and cannot be changed until the lease is up. 



Well, if you are the type of person who loves to meet new people all the time, then this is for you. Since Airbnb rentals are based on short term stays, you can enjoy having a new guest every few days. On the other hand, with long term rentals, you will have the same tenants for a long time.


Potentially Extremely Lucrative

Commands a far higher rate than long term rentals. Some short-term properties can make more in one week from short-term stays than the property commands from one month on a long-term lease!


High demand for short-term property

Short-term renting is certainly becoming more & more popular. Not just for holiday-makers looking to make their trip more authentic but businesses are also starting to favour renting flats & houses for their staff rather than putting them up in hotels for short periods. This means that, providing your property is of a decent standard and within an area/city of relatively strong demand, you shouldn’t have a problem attracting prospective tenants.  


Greater flexibility for tenants & landlords

Tenants can extend their stay if required (depending on bookings) or can book numerous stays at the same property throughout the year. Landlords can also get access for personal use as and when they require.

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Free Time

Well, if you are not that good with people, you might not want to rent your property on Airbnb. It requires dealing with your visitors directly, while in long-term rentals you will only have to deal with your tenants when signing the lease and if any situation occurs.


Property management

You will also have to manage your property alone if you want to make the most money with Airbnb rentals. This also means you will have to invest a lot of your time in this. In traditional rentals, meanwhile, you have the option of hiring a property management firm to take care of your property for you. They are going to handle tenants, rent collection, and other operations related to your investment property. Therefore, you will not have to deal with your tenants unless a situation requires your presence.



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