Would you rather... (short term vs. long term rental)

[Marylin OShea]

The ADW I remodeled on my property is nearly complete, and I am already getting enquiries for 1-year rentals, while my initial thought was to furnish and manage on AirBnB (I was prepared to put in the work).

Now, seeing that the market for a "tiny" house like the one I built is probably $100-150 a night in the touristy area where I live, would you rather... take $1200-1500 long term rent, or go the short term route?

The negatives of AirBnB over long-term rental:

- Self employment tax on income

- Lots of work managing communication, cleaning, issues, etc

- At the mercy of the review system...

- My neighbors may start to hate me!

- My dog is not a fan of strangers, the constant flow of random people by the side of the house will be a nuisance for sure (he'll bark his head off & I work a lot from home!)

The positives of AirBnb:

- Upside on income if occupancy rate stays strong

- Access to the property when I need it (can block off time when friends/family visit)

- I'll meet more people/fun factor.

What would you do?

[Brian G.]

@Marylin OShea this is a personal decision so it's not just about numbers, profit, etc. Personally I would go for the option that gives me the greatest return for the least amount of hassle/work but I'm a busy full time W2 employee and therefore I want investments that will be easy to manage and as passive as possible. In the end, you have to look at how much more the STR option will make you and how much it will require of you and see if it's worth it, etc.