Tenancy period
Short term is usually fewer than 28 days, long term is usually 6-12 months or more.
Income potential
Short term can earn more per night but long term provides stable monthly income.
Vacancy periods
Short term has no fixed tenants so can earn during vacancies. Long term vacancies mean no income.
Guest requirements
Short term needs regular cleaning. Long term means less cleanings but more maintenance issues.
Tax treatment
Short term is taxed as business income. Long term is capital gains when selling property.
Regulations
Short term has rules around minimum nights, license requirements. Long term has tenant rights and laws.
Interaction required
Short term needs booking platforms, check-ins, guest communication. Long term hands-off after signing lease.
Expenses
Short term has more cleaning costs. Long term incurs repairs, property management, longer vacancy risks.
Returns
Short term often yields 10-30% returns. Long term around 3-5% from rents alone due to leverage from mortgage interest.
In conclusion, short term is more hands-on but higher income potential while long term is hands-off stable returns. Both have pros-cons.
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