This rental property type is usually protected by a lease agreement of at least 6 months or more with more binding terms than a short-term rental would. On the other hand, a long-term rental is the traditional type of rental property that is typically used for residential purposes. This type of rental business is quite common among entrepreneurs who would rather avoid the complexities involved in becoming a property owner (background check, loan approvals, credit check, etc). One popular cash flow model used for this type of rental is rental arbitrage, which is essentially renting out a property or apartment unit and then re-renting it out on a short-term basis on vacation rental platforms like Airbnb, VRBO, or HomeAway. However, this type of rental allows the guests to feel more comfortable and “at-home” because these properties are typically furnished like so.

A short-term rental is typically a vacation rental property that is rented out on a short-term basis to guests in a similar fashion to hotels.

Renting through airbnb long term