Airbnb/Homeaway verses a long-term rental in Austin, TX

[Jessie Wells]

Hello! My husband and I just finished out a basement efficiency apartment in our north Austin home. It has a private entrance, full bath, and a full kitchen with a tiny home/industrial concept. We had planned to rent it as a short-term vacation rental but have a current long-term renter who is interested in a 1 year lease. 

I'm curious if there is anyone with short-term rental experience in Austin. It's a very popular strategy in the area and we'd like to know what supply/demand looks like in the market. If we go the short term rental route, how can we run the numbers to predict revenue? 

It's tempting to go the long-term route because (a) it's guaranteed income (b) the income is more passive (c) lower start-up costs and (d) we like the renters. On the other hand, the short-term route is appealing because (a) appears to be greater income potential (b)  gives us more flexibility with the space (c) the hospitality industry is intriguing. 

Thanks in advance for your insight!