Airbnb vs. long-term leases: Which is better for landlords?

Real estate studies show that traditionally, a home could be rented out for any period, but most landlords would opt for a six-month lease agreement or longer with a potential tenant, also referred to as long-term rentals. However, one of the great ways of maximizing rental returns on a residential property of late is through Airbnb. Many landlords who traditionally would have opted for a long-term rental have done the math and realized that in a good month using Airbnb, they could actually make more money.

A home that "ticks all the boxes" is easier to find quality tenants because there will be competition between potential renters. This will allow the landlord to choose the best possible tenant who is "house-proud" and will do their best to look after the property.

Airbnb means meeting new and different people.

Getting to know people from different parts of the world and country can be so exciting and enlightening. You can meet people from all over the world at your very doorstep or coffee table. 

Traditional renting says:

You don’t interact with tenants as much. In fact, you might avoid each other. They may be fascinating tenants but you shouldn’t be getting new tenants every month, depending on the lease and number of properties you own.

Airbnb means fun.

It’s not a boring job. You come to understand the fundamentals of customer service and hospitality. The customer is happy and you get rewarded through their reviews which generate bookings. You stay interactive with your property and make constant improvements.

Traditional renting says:

Landlords don’t benefit from titles like “Superhost” from having great reviews and a high response rate. Landlords don’t get to stay in touch with their properties. They also don’t have the opportunity to build a reputation for themselves as easily as Airbnb hosts do.

Airbnb means making money!

Ding, ding, ding! For some, this pro might trump all other pros and cons. Airbnb hosts who rent out their room have reported their income helping them with over 50% of their rent and paying their mortgage. Many Airbnb hosts have expressed making more money though their rental than through traditional leasing. That might make you wonder, “they make more money, but how much extra work do they do?” Well, it doesn’t have to be all that much. A lot of things can be simplified using technology.

We, at Hello, Suburbia, help the landlord avoid this extra work by installing and maintaining apps for locking and unlocking your door or creating house guides/manuals that should be adequate for guests to make themselves comfortable. Finally, the Airbnb platform takes some part in answering potential renter inquiries for you.

Airbnb means playing with your prices.

As an Airbnb host, you can take advantage of the weekends and high seasons by raising your price due to high demand and limited options.

Traditional renting says:

​Can’t raise your rent randomly on weekends or high season.