Are Short-Term Rentals a smarter choice over Long-Term Rentals?

[Calvin Baughman]

This must be a commonly asked question here, but I'm seeking updated opinions, from People who are daily operating in those markets. Could the profitability of Short-Term Rentals outweigh the stability offered by Long-Term Rentals in today's dynamic real estate landscape? What key factors contribute to the financial advantage or stability between these two rental models, and how do market fluctuations impact their respective profitability over the long term?

[Zach Edelman]

Unfortunately, if this were a true yes/no question, everyone would do one or the other. One personal suggestion I have is that if you're going the STR route and you're investing in an urban market rather than a true vacation market (i.e Houston, TX vs. Outer Banks), you are going to want to ensure that you're property can cashflow, or at the very least make ends meet as a long-term rental. This way, in the event of regulations, you are covering yourself from potential large losses/the property no longer being sustainable.