Is Airbnb more profitable than a long-term rental?

Short-stay can earn more per night, but after higher costs (cleaning, furnishing, power, platform fees), vacancy between guests, and more of your time, the net can be similar to or less than a steady long-term tenancy. It depends heavily on occupancy and location.

What extra costs come with short-stay?

Cleaning between guests, linen and consumables, furnishing, higher power and internet, platform commission, and often higher insurance and rates treatment. These can take a large bite out of the higher nightly rate.

Are there tax and council rules for short-stay?

Yes. Short-stay income is taxable, GST can apply above the threshold, and some councils charge higher rates or have rules for short-term accommodation. Get advice before switching a property to short-stay.

Airbnb vs Long-Term Rental Calculator

This New Zealand calculator compares short-stay (Airbnb) income against a standard long-term tenancy, after the higher costs and vacancy that short stays bring. The nightly rate looks attractive, but cleaning, furnishing, power, platform fees and empty nights can close the gap. You enter the nightly rate, occupancy and costs alongside a weekly rent, and the tool shows the net annual income each way.

Short-stay nightly rate

Occupancy

Short-stay costs (% of income)

Long-term rent per week

Long-term costs (% of rent)

higher net income per year

Short-stay net$0

Long-term net$0

A simplified comparison. Short-stay costs (cleaning, furnishing, power, platform fees, higher insurance/rates) are entered as a share of income; long-term costs cover management, maintenance and vacancy. Short-stay also takes far more of your time and has tax and council rules. Estimate only, not financial or tax advice.

How it works

The calculator works out short-stay gross income as the nightly rate times occupancy across the year, then subtracts your short-stay cost percentage for cleaning, furnishing, power and platform fees. It compares that with long-term rent across 52 weeks, less your long-term cost percentage for management, maintenance and vacancy. The higher net figure is the better earner on the numbers, before you weigh the extra time and the rules short-stay involves.

Worked example

At $220 a night and 65% occupancy, short-stay gross is about $52,200 a year; after 40% costs, around $31,300 net. A $650 weekly long-term rent is $33,800 a year; after 15% costs, about $28,700 net. Here short-stay edges ahead, but for far more effort, and a lower occupancy would flip it.

Related calculators

Short Stay Income Calculator: short-stay income.
Rental Yield Calculator: rental returns.
Mixed-Use Holiday Rental Calculator: short-stay tax.
Holiday Home Cost Calculator: holiday home costs.

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