Short-Term Rental vs. Long-Term Rental: Which Is Better? Rental Property Management in Vancouver WA

When managing rental properties, one of the most significant decisions you’ll face is whether to lease your property to short-term guests or opt for long-term tenants. Each strategy comes with its own unique benefits and challenges, and the right choice depends largely on your financial goals, lifestyle, and property location.

At Next Brick, we specialize in rental property management in Vancouver WA, helping property owners navigate decisions like this to maximize returns. This guide will explore the pros and cons of both short-term and long-term rentals, providing clarity to help you decide what’s best for your investment.

What Is a Long-Term Rental?

A long-term rental typically involves signing a lease agreement for at least 12 months. This arrangement ensures stable, predictable rental income and minimizes turnover, making it a popular choice among property owners.

Many landlords in Vancouver prefer long-term tenants for the steady cash flow and reduced workload compared to short-term rentals. However, committing to long-term leases also requires careful tenant selection and preparation for potential challenges, such as limited flexibility if you need the property back quickly.

Advantages of Long-Term Rentals

1. Consistent Rental Income

Long-term rentals provide reliable monthly income, which is invaluable for covering expenses like mortgages, insurance, and maintenance. In Vancouver, WA, the average rent for a one-bedroom apartment is $1,838, while a two-bedroom apartment averages $1,927. This stable demand ensures consistent cash flow for property owners.

2. Minimal Vacancy Risks

With long-term tenants, your property is rarely unoccupied. This reduces the financial risk of losing rental income due to gaps between leases. Additionally, marketing and turnover costs are lower. On average, tenant turnover in long-term rentals happens only every 18-24 months.

3. Lower Management Workload

Once a long-term tenant moves in, management responsibilities are typically limited to routine maintenance and rent collection. This "set-it-and-forget-it" approach appeals to property owners seeking passive income.

4. Tenants Who Treat the Property as Their Own

Long-term tenants often take better care of the property since it becomes their home. According to a Zillow report, long-term tenants are 38% more likely to maintain the property in good condition compared to short-term renters.

5. Stronger Landlord-Tenant Relationships

Longer leases allow for a more personal landlord-tenant relationship, fostering trust and cooperation. Tenants who feel secure in their rental are 50% more likely to renew leases, ensuring ongoing stability.

Challenges of Long-Term Rentals

1. Dealing with Problem Tenants

If you end up with a tenant who causes damage or fails to pay rent, resolving the issue can be time-consuming and stressful. In Washington, the average eviction process takes 2-3 months and can cost up to $5,000 in legal fees.

2. Less Flexibility

Long-term leases tie up your property for extended periods. If you need to sell the property or repurpose it, you’ll have to wait until the lease expires.

3.  Potential for Missed Profit Opportunities

Properties in high-demand areas, such as near Vancouver's waterfront or downtown, may generate significantly higher income through short-term rentals. A long-term lease might leave potential earnings untapped. For example, in 2023, long-term rentals in Vancouver generated average monthly rents of around $1,850, whereas short-term rentals often earned more than $3,000 per month during peak seasons.

What Is a Short-Term Rental?

Short-term rentals are typically rented out to guests for periods ranging from a single night to a few months. These properties are often listed on platforms like Airbnb or Vrbo, catering to vacationers, business travelers, or those needing temporary housing.

Short-term rentals have gained popularity in Vancouver due to its appeal as a destination for both tourists and professionals. However, this rental strategy comes with higher management demands and occasional income fluctuations.

Advantages of Short-Term Rentals

1. Higher Income Potential

Short-term rentals often generate more revenue than long-term leases, especially in desirable locations like downtown Vancouver or neighborhoods close to parks and amenities. For instance, an Airbnb property in Vancouver, WA, earned an average of $140 per night in 2023. Even at 70% occupancy, this equates to over $2,940 per month—significantly higher than the average income from long-term leases.

2. Flexibility for Property Owners

If you ever want to use the property yourself, short-term rentals make it easy. Simply block off dates on your booking calendar for personal use. This flexibility is ideal if the property doubles as your vacation home.

3. No Long-Term Commitments

Selling a property? Planning renovations? With short-term rentals, you’re not tied to lengthy leases. You can pause bookings or adjust availability without disrupting tenant agreements.

4. Tax Benefits and Deductions

Many short-term rental expenses, including cleaning, marketing, and furnishings, are deductible. Consulting with a tax professional can help you maximize these savings.

5. Attracts a Variety of Guests

Hosting short-term rentals lets you connect with a diverse range of people. From tourists to corporate travelers, you’ll experience a unique social dynamic while generating income.

Challenges of Short-Term Rentals

1. Frequent Turnover and Management

Short-term rentals require constant attention, from cleaning and booking management to guest communication. According to Hostfully, the average host spends 6-8 hours per week managing a single short-term rental property.

2. Seasonal Income Fluctuations

Income is often tied to seasonal demand. While Vancouver sees steady tourism in summer, off-seasons can bring empty calendars. For example, short-term rental occupancy rates in Vancouver, WA, drop from 80% in summer to 55% in winter.

3. Higher Wear and Tear

Frequent guest turnover leads to faster wear and tear on furniture, appliances, and décor. Regular updates and maintenance are essential to keep your property competitive. Annual maintenance costs for short-term rentals average 20% higher than long-term rentals.

4. Regulatory Challenges

Short-term rentals are subject to local regulations, including restrictions on how many nights a property can be rented annually. In Vancouver, WA, owners may need permits and must comply with zoning laws to avoid fines.

Which Strategy Is Right for You?

The choice between short-term and long-term rentals ultimately depends on your goals, property location, and availability to manage the property. Consider the following:

• If you value steady, predictable income and minimal management hassle, long-term rentals may be the better option.

• If maximizing revenue and flexibility are your priorities—and your property is in a high-demand area—short-term rentals could yield greater rewards

At Next Brick, we provide tailored solutions to meet your needs by focusing exclusively on long-term residential property management. This specialization allows us to deliver unparalleled expertise and reliability for property owners seeking stable, consistent returns. By concentrating on long-term leasing, we ensure that our clients’ investments are handled with the highest level of professionalism and care..

FAQs About Rental Property Management in Vancouver WA

1. What does rental property management include at Next Brick?

Our services cover everything from tenant screening and lease management to maintenance coordination and financial reporting. 

2. Are short-term rentals allowed in Vancouver, WA?

Yes, but they are subject to specific regulations. For instance, some areas may limit the number of nights per year or require special permits. 

3. Can I switch between short-term and long-term rentals?

Absolutely! Many property owners start with one strategy and pivot later. There should be  flexibility to adapt your management plan based on market conditions or personal preferences.

4. Which is more profitable: short-term or long-term rentals?

Profitability depends on your property’s location, demand, and your ability to manage the property. Short-term rentals often generate higher income but come with greater management needs.

5. How does Next Brick simplify rental property management?

If you are looking for Long-term rentals, We handle every aspect of property management, including tenant turnover, maintenance, and compliance, so you can focus on enjoying your investment without the stress.