Short-term on Airbnb and Booking, or long-term to one tenant? The question always starts with income, but the decision is really driven by workload, risk and regulations. Let's go through them one by one.
Income: peak versus average
With short-term letting, one night can cost far more than a thirtieth of a month's long-term rent. But the difference depends on occupancy. A well-located flat is almost always booked in summer, and sometimes empty for weeks in November. Look at the annual average, not your best month.
From that income you have to deduct platform commissions, cleaning, laundry, consumables and more frequent repairs. With long-term letting, the tenant covers most of these, or they never come up.
The work
Short-term letting is a service. Welcoming guests, handing over keys, cleaning after every checkout, messages at any hour, reviews. Either you do it, or you pay a manager to.
Long-term letting with a good tenant takes a few minutes of attention a month: payments, the odd maintenance request, a rent increase once a year. The bigger jobs come with choosing a tenant and changing tenants.
The risk
Short-term means many guests and a small risk from each, but more wear and tear and more minor damage. Long-term means one tenant with a lot riding on them: if they stop paying, it can take months to resolve. That's why your protection there is the deposit and careful selection.
The rules
For short-term letting you have to register as an accommodation provider, keep a guest register and pay tourist tax. Budapest has brought in several restrictions in recent years: some districts have tightened the rules or ban short-term letting altogether. Before you start, check the current rules in your district, and your building's rules too.
Tax works differently as well: income from short-term letting may be taxed under different rules than traditional renting. We covered this in our article on taxes on rental income.
Which one suits you?
- Short-term: if the flat is in a good tourist location, your district allows it, and you have the time or a reliable manager.
- Long-term: if you want predictable monthly income and few day-to-day tasks.
- Mixed: some owners let short-term in summer and on a fixed-term contract the rest of the year. It can work, but it takes good planning and an accurate calendar.
FAQ
Which one makes more money?
In a good location with high occupancy, often short-term. But once you factor in the costs, the work and the empty nights, the gap is often smaller than it first looks.
Do I need permission from the building?
The condominium's bylaws (SZMSZ) can restrict short-term letting. Check them before you start.
Can I switch later?
Yes. You can move from a long-term tenancy to short-term when the contract ends or by mutual agreement. Going the other way, you can start with a listing at any time.
Rentkey
If you let both ways, Rentkey's Occupancy view shows your tenancies and the bookings coming in from the platforms in one place. We explain how in this article.
