Vacation Rental vs Long-Term Rental: Which Makes More Money?

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If you’re a real estate investor — or even just renting out your own property — you’ve probably wondered:

Is it better to rent long-term or jump into vacation rentals?

The truth is: both can be profitable, but short-term rentals often win when it comes to maximizing cash flow — if you manage them right.

Let’s break it down.


How Long-Term Rentals Make Money

Long-term rentals (LTRs) are simple:

  • A tenant signs a 6–12 month lease
  • They pay monthly rent
  • You collect steady, predictable income

✅ Pros of long-term rentals:

  • Consistent monthly cash flow
  • Lower management demands (fewer turnovers, less guest messaging)
  • Easier to budget expenses year-round

❌ Cons of long-term rentals:

  • Limited ability to adjust rent mid-lease
  • Tenant damages can be costly after move-outs
  • Vacancy periods between tenants still happen — and hurt cash flow
  • Slower response to market booms (you’re locked into leases)

How Vacation Rentals Make Money

Vacation rentals (STRs/Airbnbs) are dynamic:

  • Guests book nightly or weekly
  • You can adjust prices for seasons, weekends, and special events
  • You earn more during high-demand periods

✅ Pros of vacation rentals:

  • Higher gross income potential (often 2x–3x traditional rent)
  • Flexibility to use the property yourself when needed
  • Ability to raise rates fast when demand spikes (like holidays, events, festivals)
  • More protection: guest stays are short — damages are easier to spot and claim

❌ Cons of vacation rentals:

  • More active management needed (guest messaging, cleanings, restocking)
  • Seasonal dips if you’re not in a year-round market
  • Local regulations (some cities restrict STRs — though Jacksonville remains STR-friendly in 2025)

Side-by-Side Example: Jacksonville, FL

Let’s take a real-world scenario:

Long-Term RentalVacation Rental (STR)
Average Monthly Income$1,800$3,500+
Vacancy RiskLowMedium (unless managed well)
FlexibilityLowHigh
Guest TurnoverEvery 6–12 monthsEvery few days
Cleaning CostsMinimalFrequent (but charged to guests)
Management NeededMinimalHigh (unless professionally managed)

✅ With professional management (like JaxBNB), the higher income from STRs often easily outweighs the extra work.


So, Which One Actually Makes More Money?

In most U.S. markets — including Jacksonville — short-term rentals make significantly more if:

  • The property is well-located
  • It’s marketed and priced professionally
  • Cleaning and guest management are handled properly

However:
Long-term rentals can still be a safer, more passive option for investors who want zero involvement or are in cities with strict STR laws.


How JaxBNB Makes STR Ownership Even More Profitable

At JaxBNB, we help you maximize short-term rental profits without the stress:

✅ Professional guest screening
✅ Dynamic pricing to adjust rates daily
✅ 5-star turnovers and maintenance
✅ Compliance with local licensing rules
✅ Direct bookings outside Airbnb to boost occupancy


Final Thoughts

Long-term rentals offer steady, predictable income.
But if you want higher cash flow, more flexibility, and greater property control, vacation rentals are the clear winner — especially when you have the right management team behind you.

At JaxBNB, we help hosts and investors maximize returns while taking care of the headaches.

👉 Contact JaxBNB today at info@jaxbnb.com or 904-242-6988 to see how much more your property could earn.