STR vs. LTR: Which Actually Costs More?

Short-term rentals carry a higher operating cost per dollar earned. That's not a reason to avoid them, but it's something to plan for. 

Furnishings and setup. LTR tenants bring their own furniture. STR guests don't. A three-bedroom property can run $6,000 to $12,000 to furnish at a quality level that supports good reviews. That's a one-time cost, but it's a real one. 

Cleaning. Every guest turnover requires a professional clean. If you're averaging three to four turnovers a month, you're looking at $150 to $250 per clean depending on property size and your market. On a busy property, cleaning costs alone can run $600 to $1,000 per month. 

Utilities. With LTR, tenants typically pay utilities. With STR, you do. Budget for electricity, water, internet, and streaming services to be fully in your column. 

Supplies. Toiletries, paper goods, coffee, dish soap, trash bags. Guests go through more than you'd think. Most STR hosts budget $30 to $80 per turnover for consumables. 

Platform fees. Airbnb charges hosts 3% on most bookings. VRBO's structure varies. These come straight off revenue. 

STR insurance. Covered in a separate article, but STR-specific policies add roughly $100 to $200 per month compared to a standard landlord policy. 

LTR isn't necessarily cheaper once you account for the full picture. 

Vacancy. When an LTR tenant leaves, you may sit empty for weeks while you find a replacement. One month vacant on a $2,500 rent property costs you $2,500. STR vacancies are shorter and more predictable by season. 

Tenant damage. Long-term tenants can cause significant wear. Security deposits often don't cover full repair costs, and eviction proceedings, if needed, are expensive and slow. 

Lower gross revenue. In most markets, a well-managed STR will out-earn an LTR on the same property by 20% to 50% or more, depending on location and seasonality. The higher operating cost of STR is often offset by that revenue difference. 

Consider an investor who's been running a long-term rental for five years. The property cash-flows reliably. The tenants are consistent. The workload is manageable. The question isn't whether LTR works. It clearly does. The question is whether switching to STR, or adding a second STR property, produces enough additional net income to justify the higher operational complexity. 

STR costs more to run. LTR is simpler but earns less. Which one makes sense depends on your market, your property type, and how much operational involvement you want. 

In high-demand STR markets, the revenue premium usually justifies the higher cost. In slower markets, or if you want a truly hands-off investment, LTR may make more financial sense. The question worth asking isn't which is cheaper overall. It's which one produces better net income for your specific property once all costs are counted. 

HostDesk's Feasibility and Readiness Evaluation pulls revenue context from your local market so you can compare STR and LTR projections side by side. Koli walks you through the inputs specific to your address and flags the variables that matter most for your property type and location. You see your actual numbers, not averages pulled from a city three states away. 

You make the call with a complete picture in front of you. 

Get started free at thehostdesk.com. 

• Do You Actually Need a Permit to List on Airbnb? 
• STR Insurance vs. Standard Homeowner's Policy: What's the Difference? 
• Dynamic Pricing Explained for New Hosts 
• The Go-Live Checklist: What to Complete Before Your First Booking 
• What Is an STR Readiness Inspection and Do You Need One?