🡐 Back to Resources | August, 2025 | Written by Nick Sheveland

A modern and appealing short-term rental property, reflecting the high earning potential of short-term rentals.

For years, long-term rentals were the go-to strategy for property investors. They offered predictable income, low turnover, and relatively simple management. But in 2025, the landscape has shifted: short-term rentals (STRs) are proving to be far more profitable for many owners, often delivering 2–3x the returns of traditional leases.

Whether you own a single-family home, a multi-unit property, or a vacation home sitting empty, transitioning into the STR market can dramatically improve your cash flow, increase property value, and diversify your income.

Why More Owners Are Switching to STRs

1) Higher Earning Potential

Long-term leases lock you into static monthly rent. STRs allow you to set dynamic nightly rates that rise during peak seasons, local events, or weekends. Over a year, this flexibility often translates into significantly higher revenue per property.

Curious about pricing strategies? Explore our Airbnb smart pricing guide.

2) Flexibility and Personal Use

With STRs, you decide when your property is available. Block off time for personal use, or adjust availability to fit your schedule. Unlike long-term leases, you’re never locked into year-long commitments with tenants.

3) Increased Property Value

Well-managed STRs with consistent income and strong reviews often appraise higher than properties locked into below-market long-term rents. Upgrades for guest appeal — from modern décor to smart home features — also enhance resale value.

See how staging and upgrades drive bookings in our Airbnb interior design guide.

4) Diversified Income Stream

Market downturns, tenant defaults, and vacancies can strain traditional landlords. STRs attract a mix of travelers — from families and tourists to digital nomads and business professionals — creating multiple revenue streams that buffer against risk.

Want to understand future demand? Read our guide on the future of real estate: short-term rentals.

Challenges to Plan For

Switching to STRs isn’t without hurdles. Owners should prepare for:

Higher turnover costs (cleaning, laundry, supplies)
Time demands for guest communication and marketing
Regulatory compliance in cities or HOAs that restrict STRs

For compliance tips, see our article on short-term rentals in an HOA.

The good news: with the right systems — or the right partner — these challenges can be overcome.

The Clear Stay Advantage

At Clear Stay Properties, we specialize in helping owners make the transition from long-term to short-term rentals smoothly and profitably. Our services include:

Market analysis and revenue projections tailored to your property
Professional staging, design, and essential STR amenities
Dynamic pricing and marketing strategies to maximize occupancy
Guest communication, cleaning, and preventative maintenance management

Instead of navigating the switch alone, you get a partner dedicated to protecting your investment and maximizing your returns.

A property owner happily counting his increased earnings from her short-term rental property, symbolizing the financial benefits of making the switch.

The Takeaway

Shifting from long-term to short-term rentals isn’t just a trend — it’s a proven way to unlock higher earnings, build flexibility, and future-proof your real estate portfolio. With the right strategy, your property can generate more income while still appreciating in value.

Ready to explore what your property could earn as a short-term rental? Fill out the form below to schedule your free consultation with Clear Stay Properties. Our team will review your property, analyze the market, and show you exactly how to take your rental income to the next level.

Shifting from Long-Term to Short-Term Rentals: Unlocking Financial Benefits