Investing in rental properties in Tallahassee presents landlords with a choice: should you opt for short-term rentals, such as Airbnb, or stick with long-term leasing? Both options offer unique advantages and challenges, and the right choice depends on your financial goals, property type, and level of involvement. Here’s an in-depth look at the pros and cons of each strategy to help you decide which is best for your investment.

What Are Short-Term Rentals?

Short-term rentals (STRs) are properties rented out for a few days to a few months. They are often listed on platforms like Airbnb, Vrbo, and Booking.com, attracting tourists, business travelers, and temporary residents.

Pros of Short-Term Rentals

1. Higher Rental Income Potential

STRs typically generate higher nightly rates than long-term leases, making them more profitable in high-demand seasons.

2. Flexible Availability

Owners can block off dates for personal use, allowing them to enjoy the property when it’s not rented.

3. Lower Risk of Tenant Issues

With frequent guest turnover, landlords avoid long-term tenant disputes, unpaid rent, and potential eviction hassles.

4. Increased Property Maintenance

Regular cleaning and maintenance keep the property in better shape compared to long-term rentals, where issues may go unreported for months.

Cons of Short-Term Rentals

1. Inconsistent Occupancy

While peak seasons can be lucrative, slower months may result in vacant periods with no rental income.

2. Higher Operational Costs

Frequent cleaning, utility expenses, and management fees (if using a short-term rental service) can reduce profits.

3. Local Regulations and HOA Restrictions

Tallahassee has zoning laws and potential restrictions on STRs. Some homeowners’ associations (HOAs) also prohibit or limit short-term rentals.

4. Increased Wear and Tear

More frequent tenant turnover means more repairs and replacements for furniture, appliances, and decor.

Helpful Resource: Airbnb Laws and Regulations in Florida

What Are Long-Term Rentals?

Long-term rentals involve leasing properties to tenants for extended periods, typically 6 to 12 months or longer. These rentals cater to families, professionals, and students in need of stable housing.

Pros of Long-Term Rentals

1. Steady Rental Income

Consistent, predictable rent payments provide landlords with financial stability and reliable cash flow.

2. Lower Operational Costs

Tenants are responsible for utilities and day-to-day maintenance, reducing landlord expenses.

3. Less Management Effort

Once a tenant is placed, landlords spend less time on marketing, cleaning, and frequent turnover tasks.

4. Fewer Regulatory Issues

Long-term rentals face fewer legal restrictions compared to short-term properties in some areas.

Cons of Long-Term Rentals

1. Limited Flexibility

Once a lease is signed, landlords cannot easily reclaim the property for personal use.

2. Potential Tenant Issues

Late rent payments, property damage, and evictions can create challenges for landlords.

3. Lower Income Potential

While rental income is stable, long-term rentals generally bring in less revenue than well-performing short-term rentals.

Helpful Resource: Florida Landlord-Tenant Laws

Which Option is Right for You?

The best rental strategy depends on your goals, risk tolerance, and property location. Here are key factors to consider:

• Location: Properties near universities (FSU, FAMU), hospitals, and downtown may do well as long-term rentals, while vacation-friendly areas may thrive with short-term stays.
• Income Stability vs. Maximum Earnings: If you prefer steady income with minimal effort, long-term rentals are ideal. If maximizing revenue is the goal, short-term rentals may be more lucrative.
• Time Commitment: STRs require ongoing management, cleaning, and guest communication, while long-term rentals demand less daily attention.

Final Thoughts

Both short-term and long-term rentals have their benefits, and the right choice depends on your investment style and property. If you’re unsure which path is best, working with an experienced property management company like Picht and Sons can help you optimize your rental strategy and ensure success in the Tallahassee market.

For expert property management advice, contact Picht and Sons today!