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Airbnb or Rent?

Should I use the property as a long-term rental or try short-term rentals on a website like Airbnb?

Holiday rentals are becoming an increasingly tempting alternative for property investors. Bookabach and Airbnb are very well-known sites in NZ which could be a disruption to a traditional rental industry.

There are a lot of differences between the long term and holiday rentals. It is important to understand those, do your research and weigh up all the pros and cons before you jump to the conclusion. Let us have a look at some advantages and disadvantages of both options.

Airbnb has been around for almost a decade. While many people are sold on it, it might not be the best way for you to earn rental income.

Consider each of the following questions as you work to decide the type of rental property making sense for you.

Airbnb vs Renting Your Property Long-Term?

Whether you decide to find long-term tenants or try the short-term rental market, carefully considering these questions should help you make a decision right for you.

If the short-term rental market is healthy and you’re up for the work – you may make a lot of money! But hiring a management team for Airbnb or vacation rentals can reduce your rental income a great deal too.

These types of rentals also have more risk associated with them regarding occupancy. Although you may find the payoff is worth those risks.

If you had not thought about short-term rentals being more hospitality-based than landlord-based before, carefully and thoroughly do so now as it may impact your decision.

What you thought might be an enjoyable money-making venture may turn into a job much more active than the passive investment you intended to buy.


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