LONG-TERM VS SHORT-TERM RENTALS: WHICH IS MORE PROFITABLE?

1. Long-Term Rentals (1+ year)
Advantages:
– Stable income – Fixed payments without seasonal fluctuations
– Lower expenses – Reduced cleaning, utility, and maintenance costs
– Reliable tenants – Typically expats or locals who maintain the property
Disadvantages:
– Lower yields – Rates are 10–30% below short-term rentals
– Less flexibility – Early termination can be challenging if you need to sell
Best for:
– Investors seeking passive income with minimal management

2. Short-Term Rentals (Airbnb, daily rentals)
Advantages:
– Higher income – Peak season earnings can be 2–3x long-term rates
– Flexibility – Personal use during low season
Disadvantages:
– Increased costs – Cleaning, furniture replacement, higher utilities
– Vacancy risks – Lower occupancy August–October
– Legal requirements – Some areas require special licenses
Best for:
– Owners willing to manage professionally or hire an agency

3. How to Choose?
– Tourist areas (Phuket, Pattaya) – Short-term preferred
– Residential areas (Bangkok, Chiang Mai) – Long-term more reliable
– Hybrid option – Monthly rentals for digital nomads

Key Takeaways:
– Long-term = Stability but lower returns
– Short-term = Higher profits but more involvement

The optimal choice depends on your goals and management preferences. Need help determining what works best for your property? Try our free rental calculator.