Strategy

Short Stay vs Long Term Rental

The same property, two operating models. Enter honest assumptions for both and the numbers decide, not the fashion.

Inputs

Property price

Bond amount

Interest rate

% p.a.

Bond term

years

Long term

Monthly rent

Vacancy allowance

% of rent

Management fee

% of rent

Maintenance allowance

% of rent

Fixed monthly costs

Levies, rates and insurance.

Short stay

Average nightly rate

Annual average occupancy

Platform commission

% of revenue

Cleaning cost per stay

Average length of stay

nights

Utilities and laundry

Electricity, water, wifi and linen, usually carried by the owner on short stay.

Management fee

% of revenue

Maintenance allowance

% of revenue

Fixed monthly costs

Levies, rates and insurance.

Results

Long term cash flow

-R 6 781

Short stay cash flow

-R 8 652

Difference per month

R 1 871

Long term is ahead on these assumptions.

Long term revenue

R 11 960

Costs R 4 290

Short stay revenue

R 20 277

Costs R 14 478

Long term return on price

5.6%

Short stay return on price

4.2%

Short stay activity

17.6 nights / 6.8 stays per month

Each stay carries a changeover and a cleaning cost.

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Short stay vs long term rental Airbnb and short-term rental regulations

Indicative estimates only. Short-stay income is seasonal and depends on demand, pricing, reviews and compliance with municipal by-laws and scheme rules. Long-term income depends on tenant quality and vacancy. Neither result is a forecast.