Should I long term my Airbnb?

[Luis5705]

Hi all,

I'm a brand new host and just had my first guests tonight which also leave this coming Sunday. Today I received a message from an insurance adjuster asking if I would be willing to do a long term rental to one of their customer who happens to live in the area and their house is being reconstructed. I'm being told that it would be 3 months, but could extend to 4 - 6 months. What should I consider, what should I look for? My thought is that it's guaranteed money, but I've read in several places that short term is more profitable. The house is located an hour West of Chicago in a city that it's only touristic during summer. We have a huge sports complex that hosts soccer and lacrosse tournaments literally every weekend, a brand new hospital, a new Hard Rock casino that is opening during Labor Day weekend, and the house is two blocks away from a state park, but also 5 - 10 mins drive from these other places that were just mentioned.

[Mike-And-Jane0]

@Luis5705 Just looking at profitability then the decision depends on what the insurance company is willing to pay. If it is close to your short term rates then go for it. It certainly makes more sense in low season but as I say it just depends on what they are willing to pay.

[Paula]

Hello @Luis5705, welcome to the Airbnb Community Center! I wish you all the best in your hosting journey 😊

Have you had the opportunity to read the suggestions from our experienced Host, Mike? Have you been in contact with an insurance company to better understand the pros and cons?

Keep us posted on what you decide in the end.

[Guy1083]

Hello @Luis5705 ,

It depends on what you want to achieve, how much effort you are willing to put into it, and the level of risk you are willing to take. Here are some things to consider:

- A guest staying for more than a month is considered a tenant and has legal rights. It is preferable that the tenant is the lessee and not a third-party company.
- Your property is perfect for long-term tenants. You will always have opportunities if you wish to do long-term rentals.
- Short-term rental can be much more profitable, but it depends on how much effort you put into your listing, from setting the correct price that will bring you back-to-back reservations, keeping your hosting level high for good reviews, and handling cleaning yourself or by hiring someone else after each guest. It also involves constant maintenance and learning to say no to some guests.

Consider using the summer of 2024 to gain more experience in short-term rentals and to learn what the real profit you can make from your property is, so you can later compare it to long-term rentals. In three months, when it is the low season, consider long-term rentals on the right platforms.