Airbnb vs renting: which platform generates more revenue?
As a property owner and manager, you have a lot of platforms to list your apartment or house on and not lose money. In order to solve the dilemma of which platform to choose and stay profitable, we did all the research for you. Here’s how Airbnb and renting compare in terms of pricing, flexibility, taxes, and management.
Listing on Airbnb
Want to lease your apartment on a weekend or 2 weeks basis? Airbnb is a great option for you. On the platform, you can list houses, apartments, rooms, and cabins. As the host, you’ll be able to manage the pricing structure and set daily rates as you find fit in order to maximize revenue.
If you want to invest in a property for a long term and keep your revenue safe, traditional renting might be it! Long-term rental income is typically more constant. As the owner, you can set the terms of the lease to fit your financial needs. Tenants under lease also tend to stay for a longer period of time so the revenues are more stable. Whereas on Airbnb the revenue depends on the season.
Airbnb vs renting: property pricing
Airbnb allows flexibility when it comes to setting a price for your property. As a host, you can use different pricing strategies and adjust pricing practically every day in response to different factors like day of the week, demand, and season.
As a traditional renter, you have to follow the lease agreement in good faith, and changing the price on the spot might be a breach of contract. This means you’ll receive the same amount of rental income, ensuring a steady cash flow. In terms of income consistency, traditional renting is a validated option if you’re seeking income balance.
Airbnb vs renting: what are the taxes applied
In terms of taxes, your Airbnb listing will be treated as a business and the income you earn will be subject to tax. In federal states, you will need to pay federal and state income tax, but in other states, you might need to pay occupancy tax.
The income earned from traditional property renting is also taxed. However, there are more exceptions to this matter. Any money you put into getting the property ready for rental can be listed as business expenses, which will be cleared of tax. This means the revenue generated can easily grow, as these expenses wouldn’t return from renting your property on Airbnb.
Airbnb vs Renting: revenue potential
Considering all the above mentioned, your potential revenue is higher when renting an apartment on Airbnb. Because guests looking for accommodation on Airbnb, mostly for vacation purposes, are generally accepting higher rates for short-term rental properties.
Tradition renting, however, gives you consistency. Also, the season wouldn’t influence your income and rental tax. Not depending on events, holiday season, and touristic flux, renting a property in a traditional long-term way, surely ensures a balanced income.
How to rent your apartment in less than 5 minutes
If you’re still running hot and cold on Airbnb vs traditional renting, here’s how to easily rent your apartment with LuxFlat. You get the best of both worlds 𑁋 short-term stays (from 1 to 3 months), 30% higher revenue, and significantly reduced management time.
Step 1. Go to our website
To become a member of LuxFlat Platform, visit our Partner’s Page and add your listing.
Step 2. Tell us more about your apartment
Share with us the location, capacity, and amenities of your property. Most importantly: don’t forget about the pictures! We love a good angle of an awesome property.
Step 3. Submit your property
Once you’ve finished describing your property, here comes the final step: click “Submit”. And done! We’ll review your submission and get back to you ASAP.
Short-term renting your property on LuxFlat takes a lot of hassle out of managing your property. We aim to build an honest and lasting partnership with you and this is one of the reasons why we take property management upon ourselves. Also, the LuxFlat Platform program offers:
- Profit increase by up to 30%
- Reduced operating expenses
- Premium corporate client tenants
- Weekly cleaning and maintenance check of the property
- Access to our online property partners portal with live updates on generated revenue.
Revenue share: 80% – 20%
*for flats exclusively active on LuxFlat
Opt for an aparthotel as your first port of call in Luxembourg City and avoid the stress of committing to a long-term apartment in a city that you don’t know well yet.