Today, we’re diving into a question on many of our minds: Does Airbnb do long term rentals? Whether you’re a digital nomad seeking a semi-permanent base, a college student in need of an extended stay, or moving to an area and need time to buy a home, you’re in the right place.
In this post, we’ll unravel the mysteries of long-term stays on Airbnb. From understanding what qualifies as a long-term rental to exploring the benefits and considerations for guests and hosts, we’re here to guide you through it all.
Long-Term vs. Short-Term
When pondering, Does Airbnb do long term rentals? it’s crucial to distinguish between the two primary types of stays Airbnb offers. Short-term rentals are your typical vacation getaways, usually lasting a few days to a week.
In contrast, long-term stays refer to rentals extending beyond 28 days. These are perfect for remote workers, extended vacations, or anyone needing a temporary home. Understanding this distinction is vital for both guests and hosts, influencing everything from pricing to house rules.
Growing Trend of Longer Stays
Recently, we’ve seen a shift in the Airbnb landscape, with long-term Airbnb rentals gaining traction. Part of this shift is due to jurisdictions banning short-term renting. But, there is also an increased demand in recent years from digital nomads, short term work contracts, and long term retiree travel.
Additionally, my property has had non-stop long term Airbnb stays for three years based on just a few types of guests.
- Traveling Commercial Construction Crews
- Insurance Claims at Their Personal Property
- Large Scale Remodels Happening at Their Personal Property
- Moving to the Area and Needing Time to Purchase
Previously these people would all need to stay at hotels, but now long term Airbnb bookings give them access to an entire home for an extended period of time.
Airbnb’s Approach to Long-Term Rentals
So, does Airbnb do a long term lease? Airbnb is just a booking platform. It’s always been up to the hosts if they choose to accept a long term stay. Certainly in the beginning Airbnb was intended for short-term accommodations, but the property owner gets to choose the best option for their Airbnb listings.
Legal and Financial Considerations
Before you dive into booking or listing a long-term stay, it’s important to understand the legalities and financial aspects involved. Different local laws may apply to long-term Airbnb rentals, especially in cities like New York or Los Angeles. Also, guests and hosts must consider cleaning fees, supply replenishment, service fees, and cleaning fees. Being informed ensures a smooth and pleasant long-term Airbnb experience.
Pros and Cons of Long-Term Airbnb Rentals
While exploring the question, Does Airbnb do long term bookings? weighing the pros and cons is important. For guests, long-term stays often mean monthly discounts, making it a more budget-friendly option than short-term stays. It’s a chance to really settle in, creating a home away from home. For hosts, long-term rentals offer a steady stream of income. With longer stays, frequent turnovers are less hassle, saving time and effort.
Financial Benefits for All
There are a list of reasons why property owners choose the short-term rental market, and maximizing profit is at the top of that list. Watering down income potential with a long-term lease could be the right call if you are running your Airbnb remotely and want it to be super low maintenance.
Cost-Effectiveness for Guests
Regarding long-term Airbnb rentals, one of the most significant advantages for guests is cost-effectiveness. Opting for a long-term stay often unlocks monthly discounts, making it a more affordable option than traditional short-term stays or hotel accommodations. This is especially beneficial for guests like remote workers or nearby condo owners displaced by renovations who need to manage their budgets longer.
Predictable Income for Hosts
For hosts, the financial benefits of long-term rentals are centered around predictability and stability. Hosting guests every month provides a more consistent income stream compared to the often fluctuating earnings from short-term renters. This stability can be a huge benefit, particularly during low tourist activity or in regions with a lower occupancy rate.
Reduced Operational Costs and Effort
Long-term rentals can also lead to reduced operational costs and effort for hosts. Since long-term guests typically stay in one place for an extended period, the need for frequent cleanings, check-ins, and check-outs is significantly lessened. This reduction in turnover saves time and potentially decreases the costs associated with cleaning and preparing the space for new guests.
Financial Planning and Security
Both hosts and guests can benefit from better financial planning and security with long-term Airbnb rentals. Guests can plan their expenses more effectively, knowing their accommodation costs upfront. Hosts can more accurately forecast their rental income, making it easier to manage their finances and invest in their property. Additionally, the longer duration of stays reduces the uncertainty and financial risk associated with unbooked periods common in short-term rentals.
Challenges to Consider
While it is true that long term guests take up less time, there are bad guests that can make you regret not having eyes on your property for that much time. Property damage and reduced gross revenue by longer term guests may outweigh the potential benefit of not having to worry about turnovers.
Less Flexibility for Guests
One of the primary challenges for guests in long-term Airbnb rentals is reduced flexibility. Committing to a single location for an extended period means less freedom to change travel plans or destinations spontaneously. This can be particularly restrictive for those who value the ability to move around frequently or may have uncertain travel schedules.
Property Wear and Tear
Long-term rentals can lead to increased wear and tear on the property. Guests staying for extended periods may increase the likelihood of maintenance issues or property damage. Hosts must be prepared for regular upkeep and potential repairs, which can be costly and time-consuming.
Local Regulations and Compliance
Navigating local regulations can be a significant challenge for hosts. Different areas have varying laws regarding long-term rentals, including zoning regulations, licensing requirements, and taxes. Hosts must ensure they are fully compliant to avoid legal issues, which can be a complex and ongoing task.
Both hosts and guests face potential complications with cancellations in long-term bookings. For guests, canceling a long-term reservation can mean forfeiting a substantial amount of money, depending on the cancellation policy. For hosts, a guest’s cancellation can lead to an unexpected loss of income, especially if they are unable to find a replacement tenant quickly.
Building a Relationship with Long-Term Tenants
Finally, both parties must consider the interpersonal aspect of a long-term rental. Building a good relationship is important, as hosts and guests will be in a longer-term agreement. Miscommunications or disagreements can lead to a strained living situation, so clear and consistent communication is key.
Legal and Maintenance Aspects
For hosts, long-term rentals can mean navigating complex local laws and possibly adjusting their short-term rental agreement to comply. There’s also the potential need for more maintenance and dealing with long-term tenant issues. Guests, on the other hand, should be aware of house rules and any long-term rental agreement specifics to avoid misunderstandings.
What to Consider for Long-Term Tenants
When considering Does Airbnb do long term rental property? for long-term tenants, it’s crucial to understand what this entails. Airbnb’s long-term rentals are typically for stays over 28 days and can extend for several months. This option is increasingly popular among those looking for an extended stay without the commitment of a traditional lease.
For long-term tenants, coming to a mutual understanding about logistics is key. Long-term rentals might require a more detailed agreement outlining terms like utility responsibilities, supplies for the house, and house rules. Both hosts and tenants should be clear about these terms to avoid any misunderstandings.
Tenant Rights and Responsibilities
Long-term tenants on Airbnb also need to be aware of their rights and responsibilities. This includes respecting the property, adhering to the agreed-upon terms, and understanding the local laws that may apply to long-term renters. It’s a good idea for tenants to have direct communication lines, like a phone number, with their hosts for any issues or questions.
Cancellation Policies for Long-Term Stays
Cancellation policies for long-term bookings can be different from short-term stays. Tenants should review these policies carefully, as they might face stricter terms and potential penalties for early termination of their stay. Knowing the policy for getting a full refund or partial refund is important when planning an extended period in an Airbnb rental.
In answering the question, Does Airbnb do long term rentals?, real-life stories provide the best insights.
Hosts Benefiting from Longer Stays
When my family first took off on our international digital nomad adventure we decided to switch our Airbnb property from short-term says to long-term renting. Our first long term guest messaged us that a tree had fallen on her house and they needed a place to stay with their dog ASAP. We were hesitant on the dog but we figured that since our kids used to dog sit at our house it would be the same thing, just for longer. That loverly couple and their dog ended up staying for 14 months and created passive income for our whole first year of living abroad.
We have had guests smoke cigarettes in our Airbnb causing us to need new linens, smoke removal service, and carpet cleaning. Another time we had guests who didn’t take the trash out for months because they said they didn’t understand the trash rules. A seemingly nice family needed a place to stay while they searched for a house to purchase, they let their kid destroy everything. Oh, and get this one, a group made everything look ordinary but secretly had put back all dirty dishes under stacks with one clean dish on top.
There are good things and bad things about operating your property as a long term rental. As you operate your Airbnb the important thing to remember is that you can change your mind and pivot your tactics based on what’s working.
Alternatives to Airbnb Long-Term Rentals
Looking at alternatives is also useful when considering Airbnb rentals for longer terms. While Airbnb is popular, some other platforms and options cater to long-term stays, offering different benefits and experiences.
One notable alternative is VRBO (Vacation Rentals by Owner). Similar to Airbnb, VRBO provides a range of rental options, but it tends to focus more on whole-house rentals. This can be ideal for families or groups seeking more space and privacy for their extended stay. Remember that VRBO may have smaller choices than that Airbnb market for certain countries.
Traditional leases can be a viable option for those looking for stability beyond what typical short-term rentals offer. Engaging with local real estate agencies or exploring online real estate platforms can unveil numerous opportunities for long-term leases, especially in cities with a vibrant housing market.
Corporate Housing For the Business Travelers
Business travelers or those needing accommodations for an extended period might consider corporate housing. These are furnished apartments typically available every month, offering amenities and services tailored to the needs of business professionals.
Booking.com isn’t just for hotel reservations; it also offers a variety of rental properties suitable for longer stays. With a wide range of options, from budget-friendly apartments to luxury homes, it caters to diverse preferences and needs, often in prime locations. It is also one of the option you can use a credit card.
Homestay offers a unique experience by allowing Airbnb guests to stay with local hosts. It’s ideal for travelers seeking a more personal connection and an authentic local experience during their extended stay. This can particularly appeal to those wanting to immerse themselves in the local culture.
For solo travelers or those on a tight budget, Hostelworld provides access to hostels that often have options for longer stays. This can be a great way to meet other travelers and find affordable accommodation, especially in expensive cities.
Co-Living spaces are becoming increasingly popular, especially among digital nomads and remote workers. These spaces offer the convenience of furnished rooms with communal areas, often including utilities and cleaning services. They’re great for networking and building a community during longer stays.
Serviced Apartment Rentals
In Japan there is a hybrid hotel slash apartment housing which is commonly called serviced apartments. You’ll find fully furnished apartments with kitchens, maid service, and commonly breakfast included in the nightly rates. These apartments offer both short-term rental stays and long term stays.