Short-term vs long-term rental - which is better for your property?

When renting out a home, owners often face a dilemma short or long term rental. Vacation platforms promise high returns, but require more time and commitment. Long-term contracts provide stability, but can limit potential earnings.

To make an informed decision, you need to consider not only your own goals, but also current market trends and tenant preferences. In 2025, for example, the demand for well-furnished two- and three-bedroom apartments in major cities is growing, with tenants increasingly demanding energy efficiency, modern amenities and good transport.

What is a short term rental?

Short-term rental means letting the property for a few days to a few weeks. It is popular in tourist areas and in cities with a developed economy.

The advantages are:

• Higher potential income – in the high season and with a good location, short-term rentals can provide greater income.

• Flexibility - the owner can use the property for personal needs between bookings.

• Greater control – frequent change of tenants allows for regular inspections and timely maintenance.

The disadvantages are:

• Unstable income – seasonality leads to fluctuations in employment and income.

• Higher costs – frequent changes of guests require regular cleaning, maintenance and advertising costs.

• More commitments – managing a short-term rental requires constant communication with guests, coordination of reservations and service.

Short-term rentals are suitable when the property is in a tourist area, has great potential for holiday accommodation and the owner has the time or uses a professional management company.

What is a long term rental?

A long-term lease is usually for a period of six months to several years. It is preferred by owners looking for predictable and stable income.

Benefits include:

• Stable income – monthly rent ensures constant cash flow and better planning.

• Less maintenance costs - the lack of frequent changes of tenants reduces the costs of cleaning and repairs.

• Fewer commitments – tenants often take care of the daily maintenance of the property themselves.

The disadvantages are:

• Lower maximum return – the monthly rent is lower than the potential income for a short-term rental, especially in tourist areas.

• Limited flexibility - long-term contracts limit the possibility to use the property for personal needs or to rent it in another way.

• Less control over the condition – since inspections are less frequent, there is a risk of wear and tear on the property.

How to choose the right option

When choosing between a short-term and a long-term rental, it is important to consider the following factors:

1. Property location – if the home is located in a tourist area, near attractions or the sea, short-term rent often brings a higher return. For properties in residential neighborhoods with a constant flow of tenants, a long-term lease makes more sense.

   
   

2. Your goals and priorities – if you are looking for a stable income with minimal commitments, long-term rental is preferred. If you want higher income and have the time to manage the property or hire a manager, choose a short-term rental.

   
   

3. Availability of time and resources – short term rental management requires active involvement or professional management. If you don't have time, the long-term option is more suitable.

   
   

4. Market trends and tenant preferences – in 2025, tenants are looking for homes with convenient transportation, proximity to shops, modern bathrooms and kitchens, reliable internet, security and energy efficiency. Investments in these elements can increase yield in both types of rental.

   
   

5. Condition and characteristics of the property – renovated properties with quality insulation, energy-efficient appliances and modern infrastructure are preferred by tenants and support higher rents. Analyze what improvements are needed and whether they justify the choice of strategy.

Tips for maximum profitability

• Do a market analysis – compare similar properties in the area to determine the optimal rent. According to Money.bg assessment of average rents and value for money is key in justifying an increase.

• Invest in improvements that add value – renovating the kitchen, bathroom or implementing smart devices increases the appeal and enables a higher rent.

• Focus on energy efficiency – tenants in 2025-2026 are looking for homes with good insulation, energy-efficient appliances and modern heating systems. Such investments reduce costs and attract quality tenants.

• Ensure a stable internet connection and workspace – telecommuting remains an important factor. Tenants are interested in fast internet and a place to work.

• Guarantee security – well-maintained entrances, access control, good street lighting and a peaceful environment enhance appeal.

• Be transparent and fair – clear contractual relations and transparent communication are crucial for long-term employment relationships.

The role of the professional property manager

Whether you choose a short-term or long-term lease, professional management can increase returns and reduce risk.

In the article of Money.bg it is emphasized that reasonable determination of rent and improvements on the property require knowledge of the market.

A professional property manager can provide:

• Market analysis and strategy – comparing rents, choosing suitable materials and optimizing the budget.

• Maintenance control – regular inspections, management of repairs and communication with tenants.

• Marketing and recruitment of tenants – advertising on the appropriate platforms and selecting reliable customers.

• Administration - drawing up contracts, managing payments and complying with regulatory requirements.

Frequently Asked Questions (FAQ)

1. When is a short-term rental best?

When the property is in a tourist area or near key attractions and you have the time or ability to manage bookings. Short-term rental brings high income in active seasons, but is unstable outside of them.

2. How do I prepare the property for long-term rental?

Renovate the main premises (kitchen, bathroom), ensure energy efficiency and security, maintain cleanliness and functional furnishings. A clear contract and transparent communication help for a long-term relationship.

3. Can I combine the two types of rent?

Yes. Some owners rent the property short-term in the summer season and long-term in the other months. However, this requires good organization and flexibility.

4. What documents are needed for legal renting?

A written contract, registration of the lessor with the National Revenue Agency (for short-term rentals) and compliance with tax and tourist tax requirements are required. If in doubt, consult a lawyer.

5. How often should I inspect the property?

For short-term rentals, an inspection is done after each departure. For long-term - at least once every six months.

Conclusion

Choosing between short-term and long-term rentals depends on your location, goals and capabilities. Short-term rentals offer high returns and flexibility, but require more management and carry seasonal risks. Long-term ones provide stability and fewer commitments, but limit the opportunities for higher income.

It is important to monitor market trends, invest wisely in improvements and provide housing that meets the requirements of modern tenants: convenient location, energy efficiency, security and high-quality Internet.