Home & Living

Pros and Cons of Listing Short-Term Rental vs. Traditional Long-Term Rental

You’re a savvy investor. You’ve just turned one of your rental units and are ready to place a new tenant. A friend of yours mentions how well they have done with short term rentals so you figure you’ll turn to a popular platform and give it a try. From overseas platforms like AirBnB and HomeAway to local platform RentMarket, make it extremely easy to market your listings and after only a few days on market you have multiple hits. Soon enough, you’re a pro with a 5-star rating and it’s smooth sailing from here on out. But have you really done your research and understand the pros and cons of it? Here we list down some of the pros and cons of short-term vs. long-term rental.



PROS #1: Higher Flexibility for Host

Host is able to set desired house rules (no smoking, no parties, no pets and etc.) to avoid dealing with unwanted hassles. Host is able to be present at the compound with lesser restriction compared to long-term rentals. With this, host could communicate with guests to get to know them better and to understand their purpose of the stay, as well as to overlook the space rented to ensure it is in good hands.


PROS #2: Earn More

Short-term/daily rental fee is often charged more than long-term rental fee. It has been calculated that property owners are earning 2 to 5 times more than the gross of profit by renting for nightly short-term compared to traditional long-term rental. Trending in the market, there are many rental websites (including RentMarket) that offers host to list their homes and available rooms/spaces for rent.


PROS #3: 100% Money Guaranteed When Booked

Upon booking, guests are required to pay the full amount of the days that they are staying for short-term rental in advance. The rental service/platform would have the ‘payment’ step to ensure that guests pay before getting a confirmation of the booking. The platform service would then transfer the full payment to the host during the first day when the guest check-in. As for long-term rental, tenants are usually given a period of time for payment in installments.


PROS #4: Higher Occupancy

The turnover rate for rental is very high and larger amount of people are actually looking for short-term stay. Travelers and tourists would definitely opt for a practical and more affordable short-term accommodation. This said, listings as such are an alternative to the expensive luxurious hotel stay. With a good location and a well-furnished place, the high percentage of occupancy could be maintained consistently.


Done with the Pros? Now are the Cons.


CONS #1: Having to Furnish

Staying for a short-term period, guests/travelers wouldn’t want to be running around just to get all the basic needs! Therefore, hosts would have to spend a sum of money to get all the necessities to maintain the place, and to replace the basics regularly for every guest. Same thing-think of hotel, it is crucial to prepare for details such as towel, bedding, toothbrush, sofa set and so on; but now in a budget way of a simple homestay.

Tips for host: buying in bulks would definitely be more convenient and save cost!


CONS #2: Effort to Manage

As a host for short-term rental, much more effort is required. Updating calendars to avoid double-booking and cancellations, managing the check-in and check-out of guests, and regular cleanings are among the tasks to handle. These may seem simple but it would take up your time. However, once you get the hang of it and have a systematic procedure from the beginning, you would be able to work more productively for other aspects, such as advertising your space rental. Remember, guests would always review, especially on your efficiency.

Tips for host: Invest in automated system- door locks, auto-reply messages, be as responsive! Or you can outsource to property listing-managed company.



CONS #3: Risk of Having Unpleasant Guest

Once in awhile, you might experience bad guest. A mess after a long party night? Missing stuff? There are no guaranteed ways to avoid them but only to take precautions; but hey, we cannot expect to have a forever list of good guests, right? Some of the precautions for the host would be to have CCTV in your compound; and if you are planning to be a remote host, you should always have a local manager to standby for any issues of your space/guest. You should also have your own insurance that covers short term lettings.

Tips for the host: Always communicate with your potential guest before confirming your booking (this will help you to know their personality and the intention of their stay) and also spend time viewing their rating and reviews on their profile.


Short-term rental will benefit you if you would like to take the challenge and put in more effort (especially in the beginning) to promote your space! However, this will be a great investment in the long run and it is a good opportunity for you to earn passive income as well. Have an extra space? Think about it. RentMarket is the Malaysia No. 1 Renting Platform for venue listing and booking service.

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