There isn’t a definite answer to it. Long-term rental is more of a traditional way of leasing, which offers great stability and security in your rental income, and doesn’t require you to invest too much upfront. However, you will be locked in to a contract where rent and end-of-lease time will be fixed for a prolonged period. You won’t be able to do anything about a delinquent guest or have any control over your property within the lease period. Short-term rental on the other hand, gives home owners the flexibility of utilising their own property anytime they would like, or sell off their property when they are ready, as there is no lock-in contract with short-term rental. Higher nightly rates are also more commonly seen and charged onto guests when your property is being managed on a short-term basis, which in turn boosts your rental income in a short period of time, especially during peak seasons or holidays. Tax benefit is also one big thing that entices home owners to short-term rental. Purchases made to furnish your investment property, as well as items such as appliances and repair costs can be claimed as a tax deduction. At the end of the day, you could easily convert to long-term lease if short-term rental isn’t working out for your property. However you will never know the rental income making potential of your property if you never try.