Vacation Rentals vs. Long-Term Rentals: Which One Makes More Money?
- Scott Sweeney
- May 9
- 3 min read
For aspiring landlords or real estate investors, one of the biggest decisions is choosing between short-term vacation rentals and long-term leases. Both offer the potential for solid returns—but the best fit for your goals depends on location, lifestyle, and how hands-on you want to be.
Let’s break down the pros, cons, and profitability of each option.
Vacation Rentals (Short-Term)
These are typically listed on platforms like Airbnb or VRBO and rented out for a few days to a few weeks at a time.
Pros:
Higher nightly rates: You can charge significantly more per night than you would monthly.
Flexibility: You can block off time for personal use or renovations.
Location-driven demand: Great for properties in tourist-friendly areas or near event hubs.
Cons:
More management required: Frequent guest turnover means more cleaning, communication, and coordination.
Seasonality: Income may fluctuate based on travel trends and time of year.
Regulations: Many cities, including parts of Sacramento, are tightening rules on short-term rentals.
Profitability Tip: Well-marketed vacation rentals in desirable locations can outperform long-term rentals—but they require time, attention, and often professional property management.
Long-Term Rentals
These involve leasing a property for 6 months or more, typically to a single tenant or family.
Pros:
Stable, predictable income: You receive consistent monthly rent and fewer turnovers.
Lower management demands: Once a lease is signed, it’s relatively hands-off compared to short-term rentals.
Fewer legal and tax complexities: Long-term leases often face fewer restrictions than short-term ones.
Cons:
Lower monthly profit potential: While income is stable, it’s usually lower compared to vacation rentals.
Tenant risk: Late payments or property damage can cut into profits.
Less flexibility: Once leased, you can’t use the property for personal purposes.
Profitability Tip: If your property is in a more residential or less touristy area, long-term rentals usually make more financial sense and are easier to manage.
Which One Makes More Money?
It depends.
In high-demand tourist areas, vacation rentals can significantly out-earn traditional leases—but they come with higher overhead and time investment.
In suburban or stable urban areas like many parts of Sacramento, long-term rentals offer dependable income and less volatility.
For the average investor, a hybrid approach may even be an option—rent long-term in the off-season and pivot to short-term during peak travel times.
Final Thoughts
When choosing between vacation and long-term rentals, consider your goals, your property's location, and how involved you want to be. Profit isn't just about numbers—it's also about lifestyle and risk tolerance.
Need help analyzing your property’s rental potential in Sacramento? Let’s run the numbers together.
Scott Sweeney
Your NorCal Realtor
M&M Real Estate
BRE Lic# 01938720
Cell: Call/Text 707-330-2324
About Scott Sweeney
SweeneySells
Full Time Realtor 13 Years +
Over 100 Families Served
Top 5% Producing Agent
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CSUS Business & Marketing Graduate 2006
With quickly serving over a 100 families, Scott Sweeney has become a top 5% producing Realtor in the greater Sacramento area who has helped clients from the Bay Area to South Lake Tahoe. Scott has a Bachelor Of Science in Business Administration, with a concentration in Marketing from CSUS. His education, and extensive background in the hospitality, marketing, and real estate industries, have helped Scott to become one of the leading, and most sought after agents in the area.
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