The financial comparison between short-term and traditional rentals: the real numbers

The question every property owner asks sooner or later is: is it more worthwhile to rent on Airbnb or with a traditional long-term contract? The answer depends on several factors โ€” location, type of property, willingness to manage or delegate โ€” but the numbers, in most cases, clearly favour short-term rentals.

The financial comparison: how much more you earn from short-term rentals

A one-bedroom apartment in Milan on a traditional lease generates about 800-1.100 euros per month. The same apartment on Airbnb, if well managed, can generate between 1.400 and 2.200 euros per month โ€” an increase of 60-100%. In Rome, the comparison is similar: traditional rent 700-900 euros, short-term rent 1.200-1.800 euros. The difference is even more pronounced in highly tourist-oriented areas such as Venice, Florence or coastal areas, where seasonal demand creates price peaks impossible with traditional renting. Take care, however: these figures are gross revenue from short-term rentals โ€” from which management costs (cleaning, OTA commissions, maintenance), typically accounting for 25-35% of turnover, must be deducted.

Advantages of traditional rentals that should not be ignored

Traditional renting has real advantages: fixed, predictable income every month, no day-to-day operational management, less wear on the property (a long-term tenant is generally more respectful than dozens of rotating guests), and no seasonality. It is the right choice for those with a property in areas with low tourist demand, for those who do not want to delegate management, or for those who prefer administrative simplicity.

The real variable: time and delegation

The financial advantage of short-term rentals remains intact only if management is professional. An owner managing Airbnb independently works 10-15 hours a week for each property: answering messages, coordinating cleaning, conducting check-ins and handling guest issues. If you consider your time a scarce resource, the advantage shrinks. The solution is to delegate to a property manager: the net amount you receive is lower than the gross amount, but higher than traditional rent โ€” and completely passive.

When short-term renting is worthwhile and when traditional renting is better

Do you want to compare your property's potential earnings from short-term versus traditional renting? YouBnb gives you a free valuation and shows you the real figures for your area. Request a Free Evaluation.

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