Annual profit

[Giorgos7]

I am a new member here and before I start listing my apartment I would like to ask if someone know how can I be sure if the short term rental is more profitable than longterm. Iam from Cyprus. Here is all year sunny.  The high season is from May to the end of September with 3 million tourists annually.  I have been renting my apartment the last 10 years long term by myself not with airbnb with minimum 2 years contract with the tenants. The price for rent now in my city increased. 
My question is how do I know that with airbnb rending my apartment short term I could have it all year round rented.
The rent for my apartment now is 800 euro monthly.  9600 yearly.
If for example start listing my apartment with airbnb 70 euro per day it gives me profit 2100 monthly if I have it every day rented.
However if my apartment is rented only 10 days per month and the other 20 days is empty it gives me only 700 euro monthly which is less than longterm rent.

[Sue-and-Andrew0]

To be honest there is no guarantee - even if on paper it looks good, it depends on the kinds of experiences that your guests have, the reviews they leave, and the price you list at - among a whole lot of other things.

As a starter I'd look at your potential competitors - take an honest look at how your place would compare to them and what kind of prices they are getting.  It may be worth buying a report from AirDNA to see what kind of occupancies you can expect - or even browse through the calendars for a couple of your competitors to see how full they are.

When we bought our apartment and decided to list on AIrBNB, there were only around 60 other AirBNBs in the same area - now there are over 100 and the prices are dropping as supply increases... no amount of research could have advised us of this potential.

If there's a way to start your listing from just before your high season I'd try do that - you get to ease into the high demand season during which time you get to build review volumes and build up a "cash reserve" to help carry you through the lower season.

In any event - good luck!

[Marzena4]

@Giorgos7 You must also consider wear and tear - short term rental is always easier on the property.

[Jessica-and-Henry0]

@Giorgos7

One thing I think many people forget about is the cost of the host's labor. It is probably likely that many people do get more money from hosting than having a long-term tenant BUT I always wonder, did the host consider the time and effort he/she spent on managing the listing, communicating with guests, and the turnover (laundry and cleaning) between guests? A lot of people are making more money because they made a bigger investment (furniture, bedding, towels, amenities etc.) and they are doing more work compared to having a tenant!

So when you calculate profit, make sure you are paying yourself 🙂

[Giorgos7]

Thanks a lot for your advices.  I think I will give it a try even if is low season and see how will be till next summer.

[Paul154]

I agree with all the responses. You can make more with short term, but it is more work.

So many variables come into play. Competition and Regulation are important.

Most important is personality.

I'm superficial. I love to say goodbye as much as I like to say hello.

I hate being wedded to long-term tenants. For me it always ends in tears.

Even if Airbnb would be less profitable, I would still choose short-term vs. long term.

I just hate the stress of long term rentals.