Why the lines cross
A lease is a flat line: the tenant pays the same rent whether you think about the property or not. A short-term rental is a sloped line that starts below zero at 0% occupancy, because you pay utilities, supplies, insurance and furnishing whether or not anyone books, and climbs with every booked night by about $178 net. The steeper the slope (higher rate, lower fees) and the higher it starts (lower STR-only costs), the lower the crossover. Change the nightly rate or the platform above and watch the crossover move in the chart.
Questions hosts ask
Is Airbnb more profitable than a long-term rental?
In gross revenue a short-term rental usually wins, often by 1.5 to 3 times the monthly rent. In net income the gap shrinks because the host pays for cleaning, utilities, furnishing, platform fees, supplies and more vacancy. Whether it wins depends on the occupancy you can actually achieve, which is why this calculator shows the crossover point.
What is the crossover occupancy?
The occupancy at which short-term rental net income equals the long-term rental's net income. If comparable Airbnbs near you comfortably beat it even in their slow months, short-term renting is likely to pay more; if they hover near it, the extra work and risk may not be worth it.
What are the non-financial differences?
Short-term rentals mean frequent guest communication, turnovers, restocking, reviews and more wear. They also face permit rules, night caps or bans in many cities and HOAs. Long-term rentals bring tenant-screening, eviction risk and tenant protection laws, but far less day-to-day work.
What about mid-term rentals?
Furnished stays of 30 days or more (for travelling nurses, relocations and remote workers) sit in between. They avoid many short-term rental rules, have fewer turnovers and lower fees, and often rent for more than an unfurnished lease. You can model one here by using a mid-term monthly rate as the long-term rent and adding furnished-unit utilities to landlord costs.