Short-term rentals, which are stays of a few days, and mid-term rentals, which are stays of a month or more, can earn more per month than a standard long-term lease. They also bring more work, more rules and more risk. Before you buy a property for this purpose, check that the property can legally be used that way.

Short-term versus mid-term

  • Short-term: nightly or weekly guests, higher income potential, higher turnover and more management
  • Mid-term: typically 30 days or more, often furnished, with guests such as traveling nurses, relocating workers and people between homes
  • Long-term: a standard 12-month lease, with the most predictable income and the least work

Check these before you buy

  • City or county rules. Many Metro Atlanta jurisdictions regulate short-term rentals through permits, limits or outright bans. Ask the local government.
  • HOA covenants and condo rules, which can prohibit short stays
  • Zoning and occupancy limits
  • Insurance, since a standard landlord policy may not cover short-term guests
  • Lodging and sales taxes, plus income tax treatment, which your tax advisor can explain
  • Parking, noise and neighbor impact

Run the numbers conservatively

Income from short-term stays swings by season and by local events. Plan for vacancy, cleaning, furnishing, utilities, platform fees, supplies and management. Compare your projected net income to a long-term rental in the same home. If the extra income is small, the extra work may not be worth it.

How we help

We help you find properties in areas where the use is allowed, and we run the numbers with you before you offer. We work across Atlanta, Brookhaven, Decatur, Duluth, Ellenwood, Griffin, Hampton, Lawrenceville, Lilburn, Locust Grove, McDonough, Norcross, Snellville, Stockbridge, Stone Mountain and Tucker.

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Related: rental property and buy-and-hold.

Nil Patel is a licensed Georgia real estate salesperson with Keller Williams Realty Atlanta Partners. This page is general information, not legal, tax or financial advice, and nothing here is a commitment to lend. Talk to a lender and a real estate attorney about your own situation. Investing involves risk, and past results do not guarantee future results. If Nil, a team member or an affiliate wants to buy a property directly, that buyer will say so in writing before you sign.