28 Mar Short-Term vs. Long-Term Rentals: 5 Proven Tips to Maximize Your Earnings in St. Louis

Short-Term vs. Long-Term Rentals – which one is the smarter investment in St. Louis? Whether you’re looking for a steady rental income or aiming for higher profits through vacation stays, it’s important to understand how each option works in this market.

Both short-term rentals (Airbnb, VRBO) and long-term rentals (traditional leases) have their advantages. Short-term rentals can bring in higher earnings per night but require frequent management and maintenance. On the other hand, long-term rentals offer steady, predictable income with fewer turnovers and lower maintenance costs.

In this guide, we’ll dive into the pros and cons of short-term vs. long-term rentals in St. Louis, covering income potential, expenses, and market demand to help you choose the most profitable option.

Short-Term vs. Long-Term Rentals: 5 Proven Tips to Maximize Your Earnings in St. Louis

1. Understanding the St. Louis Rental Market

St. Louis is home to a diverse real estate market with strong demand for both short-term and long-term rentals. Key areas for rental investments include Downtown St. Louis, Soulard, The Central West End, Tower Grove, and The Hill.

Market Insights

• Short-term rentals thrive in areas with tourism, business travelers, and events. St. Louis attractions like the Gateway Arch, Busch Stadium, and Forest Park bring visitors year-round.

• Long-term rentals are in demand near major employers like Washington University, BJC Healthcare, and Boeing, where professionals and families seek stable housing.

2. Short-Term Rentals: Pros & Cons

Short-term rentals (STRs) are typically listed on platforms like Airbnb and VRBO and rented for days or weeks at a time.

Pros of Short-Term Rentals

• Higher Earning Potential – You can charge higher nightly rates, potentially making more than a traditional rental.

• Flexibility – You can use the property yourself when it’s not booked.

• Less Wear and Tear – Since guests stay for short periods, they don’t use appliances and fixtures as much as long-term tenants.

• Market Demand – St. Louis has a steady flow of tourists, business travelers, and event attendees, increasing demand for STRs.

Cons of Short-Term Rentals

• Seasonal Fluctuations – Demand can drop during off-peak times.

• Higher Operating Costs – Cleaning, furnishing, utilities, and management fees add up.

• Local Regulations – Some areas have strict rules for short-term rentals, including permits and taxes.

• Time-Intensive – Managing bookings, guest communication, and maintenance requires effort or hiring a property manager.

Potential Profitability

A well-located STR in Downtown St. Louis or The Central West End can generate $2,500–$5,000 per month, depending on occupancy rates. However, higher expenses and market fluctuations must be factored in.

3. Long-Term Rentals: Pros & Cons

Long-term rentals (LTRs) involve leasing a property for six months or longer, often with an annual lease.

Pros of Long-Term Rentals

• Consistent, Predictable Income – Monthly rent provides a steady cash flow.

• Lower Management Effort – Fewer tenant turnovers reduce workload and costs.

• Fewer Legal and Tax Complications – Long-term leases typically have fewer restrictions than STRs.

• Lower Expenses – Tenants often pay their own utilities, and there’s no need for frequent cleaning or furnishing.

Cons of Long-Term Rentals

• Lower Monthly Profit Potential – Rents are stable, but not as high as STR nightly rates.

• Tenant Risks – Evictions, property damage, or missed rent payments can happen.

• Less Flexibility – You can’t use the property whenever you want.

Potential Profitability

A long-term rental in St. Louis may bring in $1,200–$2,500 per month, depending on location and property type. While income is lower than STRs, stable tenants and fewer expenses make it a lower-risk investment.

4. Key Factors to Consider When Choosing Between STRs and LTRs

• Location – STRs perform better in tourist-friendly areas, while LTRs work well near universities, hospitals, and businesses.

• Financial Goals – If you prefer higher short-term profits and can manage fluctuations, STRs might be better. If you want steady, passive income, LTRs are a safer bet.

• Regulations – Check St. Louis zoning laws, HOA rules, and short-term rental permits before investing.

• Time Commitment – STRs require active management, while LTRs are more hands-off.

5. Which Option Is More Profitable in St. Louis?

• Short-term rentals can yield higher monthly earnings, but they come with more work, expenses, and risks.

• Long-term rentals provide steady, passive income with lower management costs.

Best Option

If you’re in prime tourist or event areas, short-term rentals can be more profitable if managed well. However, for those seeking stable, low-maintenance income, long-term rentals offer reliability with fewer variables.

Final Thoughts

Deciding between short-term and long-term rentals in St. Louis depends on your goals, property location, and risk tolerance. At Hermann London, we specialize in helping investors analyze rental potential, navigate regulations, and maximize returns.

Thinking about investing? Contact Hermann London today to explore your best rental strategy in St. Louis.