Property ownership is one of the biggest investments that we make during our lifetime. If we are lucky we can pay off the property where we live by the time we retire. If we are even more lucky we can make additional property purchases and this being an investment property. Owning an investment property is an important matter. With investment property the issue is for the owner is to maximize the return of investment. The question is asked if it is more profitable to rent it out long term to one single tenant or to rent It out shortterm to guests. Like everything in life, there advantages and disadvantages for both choices.

Longterm property renting can be an easier choice. It is basically finding a tenant that rents out the space for long period, maintains the space on daily basis and pays the utility bills. The owner just collects the rent on periodical terms. Longterm property renting gives an annual return in the range from 3% to up to 10% depending on the country, market and particular property demand.

Shortterm renting requires more day to day activity by the owner. These activities are managing the property, listing the space for shortterm renting, negotiating the bookings, arrivals and departures of guests and etc. Also, shortterm renting requires that t he owners maintains the property on daily level, cleaning the property when guests leave (this can be done by a professional agency, but it eats the profits), attending to some immediate requests by guests and etc. Shortterm renting on average gives the annual return (again depending on the country and market) twice times the longterm renting and in some circumstances even more than that.

In conclusion it is up to the owner to choose what type of renting is appropriate for the investment property. Both options can be appealing and are resulting from personal involvement and earnings expectations.