Long-term vs short-term rental - which is more profitable?

The dilemma of every owner in Sofia

Apartment owners often ask themselves the question:"Should I rent long-term or short-term?"Both options have their advantages and risks.

Long-term rentals bringstability and security, while the short-term promiseshigher returns, but require more commitment and management.

The team ofTop Kvartiri, with experience in managing hundreds of properties in Sofia, compares the two models to help you choose the most suitable one according to your goals and type of property.

1. What is a long-term lease?

A long-term lease usually refers to periods over6 or 12 months. The tenant settles in for a longer period of time by making a commitment to regular payment and maintenance of the property.

Advantages:

• Steady and predictable income

• Less administrative work

• Lower operating costs

• Less risk of damage

Disadvantages:

• Fixed income without flexibility

• More difficult rent update

• Risk of problem tenants

Top Kvartiriprovides pre-selection of tenants and legal protection so that owners can enjoycalmness and stability.

2. What is a short-term rental?

The short-term rental covers periods ofseveral days to several months, being often used fortourism, business trips or digital nomads.

Advantages:

• Higher profitability (up to 50% more per month)

• Flexibility in pricing

• Possibility of personal use of the property

Disadvantages:

• Higher cleaning and maintenance costs

• Greater administrative burden

• Need for active management and marketing

short-term rentals are ideal for properties incentral areas or near business areas, where the flow of guests is constant.

3. Financial comparison: long-term and short-term rent

Criterion	long-term rental	short-term rental
Average yield	5–7% per year	8–12% p. a
Maintenance costs	Low	Tall
Occupancy	90–95%	60–85%
Risk of damage	Low	Medium to high
Need for management	Low	High
Suitable for	Passive investors	Active owners or professional managers

4. When to choose a long-term rental

✅ If you are looking forstable income without constant commitment

✅ If the property isoutside the centeror in a residential area

✅ If you don't want frequent changes of tenants

Example: An apartment in a neighborhoodYouthwith rent fromBGN 1200/monthcan bring stable yield at approxpermanent occupancy.

5. When to bet on a short-term rental

✅ If the property is incentral part of Sofia

✅ If you have time (or a partner likeTop Kvartiri) for management

✅ If you are looking forhigher but more volatile returns

Example: Apartment inLozenetsorCenter, rented out through platforms like Airbnb, can bringup to BGN 2,000–2,500/month, but at 70–80% occupancy and higher maintenance costs.

6. The best of both worlds – professional management

Top Kvartiricombines the advantages of both approaches by offeringmixed strategies:

• Short-term rental during the active season

• long-term during the winter months

• Automated management, cleaning and guest service

This is how owners achievehigh returnno daily commitment.

The choice depends on the goals, but management is the key

There is no one-size-fits-all answer –long or short-term rentaleveryone has their place in the market. It is important to know the market, choose the right strategy and haveprofessional partner, which manages your property efficiently.

Top Kvartiriguarantees that regardless of the model chosen, your property will carrymaximum return and minimum risk.