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Investment
STR vs LTRShort-term versus long-term rental
STR versus LTR is the comparison between letting a property to short-staying guests and letting it to a tenant on a long lease. Short-term letting typically produces higher gross income with higher costs, more variability and more regulation; long-term letting produces lower, steadier income.
Why STR vs LTR matters for your revenue
The right answer depends on the market's seasonality, local rules and the owner's tolerance for variability — not on gross income alone. Comparing the two on net income after all costs is the only reliable basis for the decision.
Related terms
- Rental yieldRental yield is annual rental income as a percentage of property value. Gross yield uses income before costs; net yield uses income after operating expenses and is the more meaningful figure for comparing investments.
- Mid-term rentalA mid-term rental is a furnished let of roughly one to eleven months, sitting between nightly stays and a conventional tenancy. Typical guests are relocating staff, project workers, medical professionals and people between homes.
- Net operating incomeNet operating income is the revenue a property generates after operating expenses but before mortgage payments, depreciation and income tax. Operating expenses include management, cleaning, utilities, insurance, supplies and routine maintenance.
- Occupancy rateOccupancy rate is the share of available nights that were booked in a period, expressed as a percentage. Nights the owner blocked for personal use are normally excluded from the available count, so the figure reflects commercial performance rather than calendar availability.
Revenue Management at Pinnacle Path
STR vs LTR sits inside our revenue management work. See how we apply it market by market.