With short-term rental markets maturing and regulations tightening across U.S. cities, many hosts are considering a pivot: converting their Airbnb to a long-term rental. But is it the right move?
Whether you’re managing a portfolio of properties or renting out your guesthouse, understanding the trade-offs between short-term and long-term leasing is crucial to maintaining healthy cash flow and long-term profitability.
This article explores the decision from multiple angles ROI, income stability, regulations, and taxes with tools like the Airbnb Calculator and STR Calculator to help you make data-backed choices.
Why Are Hosts Switching from Airbnb to Long-Term Rentals?
In 2023, the Airbnb market saw a major shift. According to AirDNA, occupancy rates in many top cities dipped by 5% to 10% compared to 2022, and average daily rates (ADR) began to stabilize or decline. Meanwhile, cities like New York, San Francisco, and Dallas implemented tighter rental regulation by market—limiting STR operations in residential zones.
For many hosts, this has triggered a key question:
“Should I stop short-term renting and lease my property as a long-term rental?”
Before making the switch, let’s unpack the critical factors you should evaluate using modern investment tools.
Use a STR Calculator to Compare Cash Flow
Tools like the STR Calculator offer data-rich insights that compare:
- Short-Term Rental (STR) Net Profit
- Long-Term Rental Monthly Income
- Operating Costs, Vacancy, and Turnover
Let’s consider a real-life scenario:
| Location | STR Monthly Net (Est.) | Long-Term Rent (Est.) |
|---|---|---|
| Scottsdale, AZ | $3,800 | $2,400 |
| Miami, FL | $4,200 | $2,700 |
| Denver, CO | $2,900 | $2,500 |
Data sourced from internal analytics tools and market averages, 2024.
The calculator provides ROI visualization, making it easier to see whether the income stability of long-term tenants outweighs the STR earning potential in your location.
Passive Income vs. Active Income: What’s Your Goal?
Let’s break down the most overlooked factor—your lifestyle and time investment.
- Short-Term Rentals (STR):
- High maintenance (guest communication, turnover cleaning, listings)
- Potentially higher ROI
- Constant optimization required (pricing, photos, reviews)
- High maintenance (guest communication, turnover cleaning, listings)
- Long-Term Rentals (LTR):
- Lower time commitment
- Consistent monthly income
- Fewer regulatory hurdles
- Lower time commitment
Passive income vs active income is a personal decision. If you’re a full-time investor or STR operator, you may prefer the dynamic income of Airbnb. But if you want to minimize time spent managing guests, long-term leases might be a better fit.
Pros and Cons of Converting Your Airbnb
| Pros of Long-Term Rental | Cons of Long-Term Rental |
| Steady, predictable income | Lower monthly revenue |
| Less turnover & maintenance | Difficult to increase rent quickly |
| Avoid short-term rental laws | Locked into lease agreements |
| Pros of Short-Term Rental | Cons of Short-Term Rental |
| Higher income potential | More management work |
| Flexibility to block dates | Regulatory risk in some cities |
| More tax deductions | Seasonal income fluctuation |
Local Rental Regulation by Market: What You Must Know
Many U.S. cities are tightening their grip on short-term rentals. Here’s a quick look at where the regulatory landscape stands:
- New York City: As of 2023, Local Law 18 limits STRs to owner-occupied units and requires registration.
- San Diego: Capped whole-home STRs at 1% of housing supply.
- Dallas: Banned STRs in single-family residential zones.
- Nashville: Introduced permit lotteries and distance requirements.
If your city is rolling out restrictions, converting your Airbnb to a long-term rental may be your only compliant path forward.
Use the analytics overview tool to track rental regulation by market and assess whether your current listing still qualifies under city rules.
- 📊 Which Airbnb rental markets are set to outperform in 2025 based on revenue growth, occupancy trends, and supply shifts.
- 🏡 Where home prices are still affordable while generating high rental income.
- 📈 How to identify markets with strong appreciation potential for both short-term cash flow and long-term gains.
Tax Implications of Making the Switch
If you’re switching to long-term, your tax profile changes. Here’s how:
Short-Term Rentals (less than 30 days):
- Considered business income
- Eligible for depreciation and cost deductions
- May be subject to lodging tax
Long-Term Rentals (more than 30 days):
- Considered passive income
- Still eligible for mortgage interest and property tax deductions
- May reduce your overall tax liability
Consult a CPA who understands STR and long-term tax implications, especially if you plan to use a 1031 Exchange down the road.
Airbnb Investment Strategy in 2025: Hybrid Is In
According to Zillow, in 2024, nearly 38% of new investors are now using a hybrid model, mixing short-term rentals with mid- or long-term leases depending on demand and seasonality.
If you’re not ready to fully give up on STR income, consider:
- Mid-Term Rentals (30–90 days for travel nurses, consultants, etc.)
- Seasonal STR + Off-Season LTR combo
- STR on weekends, LTR during weekdays (only in permitted markets)
This keeps your Airbnb investment strategy agile and responsive to market conditions.
Checklist Before You Convert Your Airbnb
- Use the STR Calculator to compare projected ROI.
- Review rental regulation by market—are you still compliant?
- Evaluate your passive income vs active income goals.
- Forecast seasonal demand using the Airbnb Calculator.
- Understand tax implications of converting to long-term.
- Get advice from an experienced property advisor.
Make Smarter Decisions with STR Tools
- The STR Calculator offers real-time ROI comparisons between Airbnb and long-term rentals.
- The Airbnb Calculator helps estimate occupancy, nightly rate, and annual income by location.
- Use market regulation data to determine where to operate, pivot, or invest next.
These tools help you build smarter, data-driven strategies—especially during a time when the market is shifting fast.
Conclusion: Is It Time to Convert?
Converting your Airbnb to a long-term rental might be the smartest move you make in 2025—or it might not be.
The answer depends on:
- Your local market
- Your time and risk appetite
- Your financial goals
Use the right tools like the STR Calculator to run the numbers, compare strategies, and make informed decisions.
Take control of your rental strategy today run the calculators and see if the long-term route makes sense for your property.
