We really enjoy talking to property owners who are choosing between short term rental and long term rental. The factors that go into making a decision on how to utilize an investment property or Accessory Dwelling Unit (ADU) to earn income really vary from person to person. The market you’re in is important, as well as your required profit margins. Then you have to consider your own personal preferences for working with people and how you like to handle upkeep on the property.  Really though, from what we’ve learned, it comes down to these primary factors. Most folks can find their dealbreakers or dealmakers in one of these two lists and then it’s an easy decision to make!


Host is in the unit regularly and able to perform frequent maintenance and repairs.

Frequent cleaning guaranteed, paid for by guests.

Potential for higher revenue, depending on market and expenses.

Ability to capitalize on seasonality and special local events.

It is easier to evict a short-term guest than a long-term tenant.

Platforms such as Airbnb include insurance coverage for liability and property damage.

More flexibility to use the unit for other uses or block out dates.

Hospitality can be fun!


Generally hands-off on a day to day basis.

Tenants typically pay utilities.

Stable income that is not subject to seasonal ups and downs.

Furnishings and amenities are not required.

Neighbors may be averse to short term rental guests.

Some jurisdictions favor long term rentals and do not allow or heavily regulate short term rentals. Insuring long term rentals is straight forward.

When it comes down to it, there are definitely pros and cons on both sides of the term rental aisle. We love it when folks choose short term rental… but that’s because we fall firmly into the “hospitality is fun!” camp.  If you’re in Durham, NC and you want to chat with us about your decision process, just drop us an email! We’d love to hear from you!