For Apartment and Property Owners: The Pros and Cons of Short-Term Rentals
2026-02-18 10:55
For Apartment and Property Owners: The PROS and CONS of Short-Term Rentals
Short-term rentals have long stopped being something exotic. Today, they are one of the most discussed ways to use residential real estate — especially in resort cities and tourist regions. At the same time, there are still too many illusions, fears, and myths surrounding them. Some see them as a “gold mine,” others as an endless headache. As usual, the truth lies somewhere in between.
Let’s take an honest look at what short-term rental really is, who it suits, where its strengths lie — and where the hidden risks are.
What Short-Term Rental Really Is — Without the Romance
Short-term rental is a business model, not a “temporary way to rent out a property.”
It includes:
daily price management
constant guest communication
regular cleaning
review management
property condition control
demand and seasonality analytics
If we simplify it to one sentence:
Short-term rental is a mini-hotel in the format of a single apartment.
And that is exactly where its greatest advantage — and its greatest risk — lies.
For Apartment and Property Owners: The PROS and CONS of Short-Term Rentals
Short-term rentals have long stopped being something exotic. Today, they are one of the most discussed ways to use residential real estate — especially in resort cities and tourist regions. At the same time, there are still too many illusions, fears, and myths surrounding them. Some see them as a “gold mine,” others as an endless headache. As usual, the truth lies somewhere in between.
Let’s take an honest look at what short-term rental really is, who it suits, where its strengths lie — and where the hidden risks are.
What Short-Term Rental Really Is — Without the Romance
Short-term rental is a business model, not a “temporary way to rent out a property.”
It includes:
daily price management
constant guest communication
regular cleaning
review management
property condition control
demand and seasonality analytics
If we simplify it to one sentence:
Short-term rental is a mini-hotel in the format of a single apartment.
And that is exactly where its greatest advantage — and its greatest risk — lies.
Myths About Short-Term Rentals
❌ Myth 1: “Short-Term Rental Is Easy Money”
No.
It is:
daily operational work
constant small decision-making
dependence on reviews and ratings
There is no more “easy money” here than in a restaurant or hotel business.
❌ Myth 2: “I Can Just Rent It Out Myself and Earn More”
Theoretically — yes.
In practice — almost never.
Self-managing usually ends with:
burnout
pricing chaos
missed inquiries
poor reviews
low occupancy
Owners rarely calculate the cost of their own time. And that is the most expensive resource of all.
❌ Myth 3: “Management Companies Just Take a Percentage for Nothing”
This myth appears where the economics are not explained.
Let’s break it down honestly.
Why Self-Management Is Inefficient
Short-term rental requires:
7-day availability
working with OTAs (Booking, Airbnb, etc.)
understanding platform algorithms
dynamic pricing
conflict resolution with guests
At some point, the owner becomes:
a front desk manager
a revenue manager
a cleaner
a customer support agent
And all of that — without weekends or vacations.
This is where a logical question arises: isn’t it actually cheaper to delegate this to professionals?
What a Management Company Actually Takes On
One of the biggest mistakes owners make is underestimating the real volume of daily work performed by a professional management company.
Under professional short-term rental management, the company handles the entire operational and commercial side, including:
listing and managing the property on OTA platforms (Booking, Airbnb, etc.)
dynamic pricing and seasonality management
handling inquiries and bookings
guest communication before, during, and after the stay
organizing and supervising cleaning
monitoring property condition and consumables
overseeing minor repairs
managing reviews and ratings
resolving conflicts
analyzing occupancy and revenue
In essence, the management company operates the property as a business — not as “an apartment occasionally rented out.”
What Remains for the Owner in Practice
In a properly structured model, the owner’s involvement is minimal.
In practice, the owner simply:
receives a monthly report
receives payments
optionally monitors performance in real time
That’s it.
No:
late-night guest messages
urgent “where do we find a cleaner?” issues
manual booking control and overbooking risks
stress about reviews
Short-term rental stops being a nervous process and becomes a managed financial flow.
How Management Companies Actually Work
In international short-term rental practice, management companies typically work for 25–30% of net rental revenue.
It is important to understand what “net rental revenue” actually means.
What “Net Rental Revenue” Is — and What It Is NOT
Net rental revenue = guest accommodation income minus OTA commission.
❌ It does not mean:
minus cleaning
minus utilities
minus consumables
minus repairs
This is an industry standard — not a trick.
Why Operating Costs Remain the Owner’s Responsibility
1. These Are Asset Costs, Not Management Costs
Utilities, cleaning, and consumables:
exist regardless of who manages the property
are paid even in self-management
are part of owning real estate
The management company generates income — it does not generate consumption.
2. Transparency and No Conflict of Interest
If commission were calculated “after all expenses”:
disputes begin
transparency disappears
mistrust appears
That is why mature markets have abandoned that model.
3. Business Control
A management company:
does not control electricity tariffs
does not influence laundry prices
does not manage inflation
Taking a percentage of something you do not control is a flawed model.
A Real-Life Example (Bar, Montenegro)
Monthly revenue: €2,000
Booking commission (15%): – €300
Net rental revenue: €1,700
Management company commission (30%): – €510
Owner receives: €1,190
After that, the owner pays:
cleaning
utilities
consumables
And receives a clear, transparent result — without manipulation.
Conclusion: Who Short-Term Rental Is Suitable For
Short-term rental suits those who:
analyze income annually, not emotionally
are ready to calculate real economics
understand the value of professional management
want to preserve their asset and maximize its potential
It does not suit those who:
evaluate the business by the cost of one cleaning
expect instant profit
are not ready for systematic work
The Main Takeaway
Short-term rental is not something to “try.”
It is a full-fledged business.
And like any business, it is either:
professionally structured
or it consumes time, nerves, and money
So the real question is not whether to hand the apartment over to a management company.
The real question is:
Do you want to run this business yourself — or is it wiser to delegate it to those who live in it every day?