How Property Owners Can Decide Between Short-Term and Long-Term Rentals in Today’s Market

If you own a property and you’re thinking about renting it out, there’s a good chance you’ve already gone back and forth on this: do you list it on Airbnb, or do you find a long-term tenant? Both options look appealing on paper. Short-term rentals promise higher income. Long-term rentals promise less hassle. But the real answer depends on a lot of factors that most people don’t sit down and think through before they start furnishing a guest bedroom or calling a property manager. We asked Daryl Fairweather, Chief Economist at Redfin, to weigh in on how property owners should think through this decision in 2026, given where rates are, how regulations have shifted, and what the data is actually showing. It’s really a question of what kind of landlord you want to be Short-term rentals get pitched as passive income. They’re not, and haven’t been for a while. You’re running a small hospitality operation, managing bookings, coordinating cleaners, restocking supplies, handling guest issues at 11pm. Done well, it can absolutely generate more revenue than a traditional rental. But you’re trading predictability for that upside. Fairweather put it plainly: long-term rentals offer steadier cash...