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Short-Term vs Long-Term Rent Calculator

Running a unit as an Airbnb/VRBO often doubles gross revenue against a long-term lease — but after platform fees, cleaning, utilities, supplies, and higher management cost, the net gap shrinks dramatically. This calculator puts both on the same scoreboard with occupancy, fees, and operating cost to reveal which actually wins after-tax-equivalent cash in your pocket.

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Higher net cash-flow strategy

Long-term rental

Monthly net difference

$285

STR monthly net

$1,791

LTR monthly net

$2,076

STR monthly gross

$3,608

STR gross ÷ LTR rent

1.5

STR turnovers per month

5.6

STR platform fee

$505

STR management fee

$722

How the math works

STR gross-revenue usually beats LTR by 1.5-2.5x, but after the STR cost stack (cleaning, utilities, supplies, 14% platform, 20% management, furniture amortization) the net gap drops to 20-60%. Add the tax prep complexity, city permit fees, and short-term rental tax (4-15% in many cities), and the gap compresses further.

Use this comparison at the market level before buying. If the STR net doesn't clear LTR net by at least 35% in your underwriting, don't count on the upside — regulation changes, market saturation, and algorithm shifts can erase the premium quickly. LTR remains the lower-effort, more predictable path in most markets.

How to Use

  1. Enter nightly rate and expected occupancy for the short-term side, plus cleaning fee and average stay length.
  2. Enter the long-term rent and expected vacancy rate.
  3. Add operating cost overlays: utilities (included in STR, tenant-paid LTR), supplies, platform fees, management %, furniture amortization.
  4. See net monthly cash flow and annualized income under each strategy.

Frequently Asked Questions

When does STR clearly beat LTR?

When the gross-revenue multiple > 2.0x LTR and local STR rules are friendly. High-demand tourist zones (beach, mountain, near convention cities), unique properties (cabins, pools), and no HOA/city caps. STR wins in these cases by 30-60% net even after cost overlays.

When does LTR actually win?

In suburbs with low tourist pull, HOAs banning short-term rentals, soft seasons (6 months vacant), or areas with strict STR permit caps. Also when your property management bandwidth is limited — STR management at 20-25% vs LTR at 8-10% has real labor tax.

What about the 14-day IRS rule?

Rent your personal residence fewer than 15 days/year and the income is tax-free under IRC §280A(g). This is a valid edge for occasional STR hosts in a primary residence — not a year-round strategy, but worth mentioning to your CPA.

How do I estimate STR occupancy?

AirDNA and Rabbu publish market-level occupancy and RevPAR by ZIP. Subtract 10-15% for rookie operators — the posted numbers are averages of active, well-optimized listings. A 70% posted market occupancy typically translates to 55-65% for a new listing in the first year.

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