Platforms like Airbnb have made short-term letting easy to start, and the nightly rate looks attractive next to a monthly rent. But the headline number hides costs, empty nights and a lot of work. Whether short or long lets pay more depends on your location, your time and your appetite for management. The only reliable way to know is to compare the two on the same basis.

Compare the income honestly

For a long let, income is simple: monthly rent multiplied by the months let, less vacancy. For a short stay, multiply the nightly rate by the nights you expect to be booked. The number that matters is occupancy. A short-stay unit at KES 6,000 a night, booked 15 nights a month, earns KES 90,000, which sounds good beside a KES 60,000 long let. But if occupancy is 10 nights, income falls to KES 60,000, with far more effort. Be cautious and use the lower numbers.

Count the extra costs of short stays

Short stays bring costs that long lets do not: furnishing and replacing items, cleaning and laundry between guests, higher utility bills, platform and payment fees, supplies such as toiletries, internet and sometimes a manager or caretaker. These can take a third or more of the income. Include them all. The rental property investment analyser lets you compare scenarios side by side.

Consider the effort

A long let needs attention at the start and when something breaks. A short stay needs attention every few days: messages, check-ins, cleaning, restocking and reviews. If you live nearby and enjoy hosting, it can be rewarding; if not, you will pay a manager a share of the income. Your time has a value, and it belongs in the comparison.

Think about risk and seasonality

Short stays rise and fall with tourism, events and the economy. A quiet season can leave the unit empty for weeks while costs continue. Long lets give a predictable income, but a bad tenant can be costly. Look at the seasons in your location and decide how much volatility you can live with.

Understand the tax

The tax treatment differs. Long-let rent is generally subject to rental income tax; short stays may be treated differently, depending on how the business is run and the services provided. Tax on Airbnb and short-stay rentals explains the position, and the Airbnb income tax calculator shows two ways of working it out. Compare with the rental income tax calculator for a long let. A business that offers hotel-like services may also need to register for VAT; use the VAT registration checker.

Check the rules and the paperwork

Some buildings, estates and leases restrict short stays, and some counties require licences. Check your title, your lease and any apartment rules before you start. Tell your insurer, since many standard policies do not cover paying guests; see insuring a rental property: what to cover. Keep records of every booking and payment.

Compare the effect on the property

More guests mean more wear. Furniture, linen and fittings age faster. Budget for replacement, and plan a repairs fund; a repairs budget and sinking fund for landlords shows how. A long tenant who looks after the property may cost less in wear than a stream of short visitors.

Run the numbers

Take a year of figures for each option. For the long let: twelve months of rent, minus one month of vacancy, minus costs, minus tax. For the short stay: expected nights times rate, minus platform fees, cleaning, utilities, supplies, furnishing, management and tax. Compare the net result and the hours you would spend. Use realistic occupancy and run a cautious version too.

A hybrid is possible

Some owners let long in the quiet months and short in the peak, or use mid-term lets of a few months for people on assignments. Check the lease and the law before you mix. If your tenants are companies, compare the withholding position with withholding tax on rent for tenants and agents.

Choose with evidence

The right answer is the one that gives you the better net income for the work you are willing to do. Start with a trial if you can: a few months of short stays will show real occupancy and effort. Keep the records, review the numbers and switch if the other option clearly wins.

See also rental yield explained, records every landlord should keep and the monthly rental income tracker.