Long-term rentals are BAD investments #rentalproperty #longtermrentals #shorttermrentals
Summary
Jorge Contreras argues that investing in long-term rentals is not as profitable as investing in short-term rentals like Airbnbs. He mentions that to get a monthly cash flow of $5,000, you would need 25 long-term rental properties. He says you could make the same amount of money with just one short-term rental property, and stresses doing the math and sticking to short-term rentals to make more money.
More from Pricing & Profitability
Suite Capacity projects $3.5 million in gross booking revenue for 2026, signaling growing demand for passive short-term rental income. This highlights the potential for financial success in the STR market. Hosts can capitalize on increasing interest in passive income streams, offering compelling investment opportunities.
Minor Hotels plans a shift towards a partially asset-light model, contrasting with larger groups like Marriott. They'll launch a REIT in Singapore in 2026, aiming to grow their investor base. The company will retain ownership of key properties, including Four Seasons and JW Marriott locations, rather than going fully asset-light. This strategy focuses on what they call 'asset right.'
This article from AD HOC NEWS examines whether Airbnb's asset-light model is still key to its sustained growth. The analysis is timely, given the dynamic shifts in the short-term rental market. The key question is whether Airbnb's business model can adapt to changing industry forces.
Curated by Learn STR by GoStudioM