Short-Term vs. Long-Term Rentals: Which Makes More Sense?

If you’re considering investing in real estate in Lima, Ohio, one of the first big questions you’ll face is whether to go the short-term rental route (think Airbnb or VRBO) or the long-term lease approach. Both can be profitable but which one makes more sense for you depends on your goals, budget, and lifestyle.

 Short-Term Rentals: Flexibility & Higher Potential Returns

What They Are:
Short-term rentals are properties rented out for a few nights to a few weeks popular among travelers, contract workers, and visitors attending local events or visiting nearby universities like The University of Northwestern Ohio.

Pros:

• Higher income potential: Nightly rates can add up, especially during busy seasons or local events.

• Flexibility: You can use the property yourself when it’s not booked.

• Faster tenant turnover: Easier to adjust pricing and property use.

Cons:

• More management required: Frequent cleaning, guest communication, and upkeep.

• Fluctuating income: Demand can drop during off-seasons.

• Local regulations: Some neighborhoods or associations may limit short-term rentals.

 Long-Term Rentals: Stability & Lower Maintenance

What They Are:
Long-term rentals typically involve a 6- to 12-month lease, offering consistent income from stable tenants.

Pros:

• Steady cash flow: Reliable monthly rent payments.

• Less turnover: Fewer vacancies and lower marketing costs.

• Lower management effort: Fewer cleanings and tenant changes.

Cons:

• Limited flexibility: Once leased, you can’t easily use or sell the property.

• Slower to adjust pricing: Rent changes only occur at lease renewal.

• Potential for wear and tear: Long-term tenants can lead to more gradual property aging.

 Which Option Is Best for You?

• If you want higher income and flexibility and don’t mind active management, go short-term.

• If you prefer predictable income and less hassle, long-term rentals might be the smarter move.

Many investors in Lima find success by mixing both strategies using one property for steady long-term income while experimenting with short-term rentals for additional profit.

 Final Thoughts

Whether you’re a seasoned investor or just starting out, Lima, OH offers great opportunities in both short-term and long-term rental markets. The key is understanding your financial goals, property location, and how hands-on you want to be with your investment.

If you’d like help evaluating which rental strategy fits your Lima property best, feel free to reach out to Garrett & Seth Real Estate Team  we’re happy to guide you through the local market trends and opportunities.