Long-Term Renting vs. Short-Term Rentals: A Real Estate Agent’s Perspective on Profit, Sustainability, and Strategy
Since becoming a licensed real estate agent in 2019, I’ve had countless conversations with property owners across Coastal Virginia — from those who prefer the predictability of long-term leases to investors curious about the flexibility and profit potential of short-term rentals.
It’s one of the most common questions I hear:
“Which is better — long-term or short-term?”
The answer depends on your goals, property type, and tolerance for involvement. In a market like ours — a tourist destination, military hub, and corporate travel corridor — both models can work extremely well when approached strategically.
Let’s look at each side.
Long-Term Rentals: Stability and Simplicity
Long-term rentals (typically 12 months or longer) offer consistent, predictable income and lower management demands. Because tenants stay for extended periods, there’s less turnover, fewer cleanings, and minimal administrative work.
In most cases, long-term rentals in Virginia have nearly zero furnishing and utility costs, since properties are unfurnished and tenants pay their own utilities. While there are exceptions — such as furnished mid-term leases — they are rare in the residential market.
However, the tradeoff for this simplicity is flexibility and control. Landlords can’t easily adjust rents mid-lease, and they often experience slower response to market shifts. Once a lease is signed, the property is committed for its term, limiting personal use or seasonal repositioning opportunities.
Short-Term Rentals: Flexibility, Profit, and Control
Short-term rentals (STRs) — anything under 30 days — allow owners to operate their property more like a hospitality business. They offer flexibility in pricing, scheduling, and guest targeting.
In the Hampton Roads area — including Norfolk, Hampton, and parts of Virginia Beach — STRs can thrive due to strong tourism, military travel, and corporate demand. However, Virginia Beach has strict zoning laws, and many neighborhoods are off-limits to new short-term rentals unless they were grandfathered in before 2019 or have a Conditional Use Permit (CUP) (City of Virginia Beach, 2023).
That means owners must verify local compliance before marketing their property as a short-term rental.
Still, when allowed, STRs provide clear advantages:
Dynamic pricing: Adjust rates to match demand spikes from events, festivals, or peak travel seasons.
Higher income potential: Well-managed STRs often earn 30–60 percent more gross income annually than comparable long-term leases (AirDNA, 2025).
Owner control: Flexibility to block dates for personal use or maintenance.
Tax advantages: Furnishing, supplies, and management expenses can often be deducted.
Profitability: Real Numbers From Our Market
In the Coastal Virginia market, long-term rents typically average $1.25 to $1.50 per square foot per month, depending on neighborhood and amenities (Zillow Research, 2025). By contrast, a well-run short-term rental can yield $3 to $5 per square foot, particularly near the water or key business districts (AirDNA, 2025).
For example:
Long-term rental: $2,400 per month × 12 months = $28,800 per year.
Short-term rental: $45,000 to $55,000 gross per year (before expenses).
Even after accounting for management, utilities, cleanings, and furnishings, owners often see 20–40 percent higher net income than they would with a traditional lease (AirDNA, 2025; RentCafe, 2025).
The key distinction?
Short-term rentals operate as hospitality businesses, not passive income streams.
They require systems, oversight, and professional care — exactly where hosting concierge services like EliteStay help owners bridge the gap between flexibility and freedom.
Mid-Term Rentals and Virginia Licensing Requirements
Many investors explore mid-term rentals (30 days to several months) to capture traveling professionals, relocation guests, or extended-stay contracts. This can help stabilize revenue and reduce turnover compared to traditional short-term rentals while still offering more flexibility than a standard 12-month lease.
However, in Virginia, any stay exceeding 30 days is legally considered a lease — and anyone who signs, negotiates, or collects rent on behalf of an owner must hold an active Virginia real estate or broker license (Virginia Department of Professional and Occupational Regulation [DPOR], 2025).
That means only licensed agents or brokers can manage lease agreements, collect rent, or negotiate terms on behalf of someone else. Property owners can self-manage mid-term stays, and there is room for professional partnership through platforms and service providers.
For example, you can list a mid-term rental on a platform like Evolve, which handles marketing and bookings while leaving formal lease management to the owner. Similarly, a hospitality or service partner like EliteStay can legally support your mid-term property by handling turnovers, guest readiness, supply management, inspections, and maintenance coordination — without engaging in any activities that require a real estate license.
This model works beautifully for properties like The Smokey Chamber Retreat, one of EliteStay’s mid-term rentals, which combines professional presentation and guest care with proper licensing and compliance. It’s a practical way to balance professionalism, consistency, and legal responsibility in Virginia’s unique rental environment.
Sustainability and Market Outlook
Hampton Roads has one of the most balanced and resilient STR ecosystems in the Mid-Atlantic. Demand is fueled by three core pillars:
Tourism: Year-round beachgoers, festivals, and cultural events.
Military: Constant rotation of service members and visiting families.
Corporate: Professionals on temporary assignments or contract work.
Add to that our temperate coastal climate — roughly 6 to 8 months of comfortable weather, with only short bouts of extreme heat or cold — and the result is a market with extended seasonal demand and fewer drastic occupancy dips compared to northern coastal states (National Weather Service, 2025).
With proper compliance, professional oversight, and consistent property maintenance, short-term rentals here can remain both profitable and sustainable long term.
Final Thoughts: Which Is Better?
If your goal is stability and minimal involvement, long-term renting remains the safest route.
If you prefer control, flexibility, and higher earning potential, short-term rentals (where permitted) deliver exceptional results — provided they’re managed with professionalism and local compliance in mind.
Many successful owners in Hampton Roads blend both strategies: short-term stays during peak months and formal leases during off-season periods — ensuring consistent revenue while adhering to Virginia’s property laws.
Ultimately, both paths can be profitable when you understand your market, your goals, and the legal framework guiding your investment.
Partner With a Local Expert
Whether you’re exploring long-term leasing or considering the switch to short-term hosting, EliteStay Hosting Concierge provides local insight, hands-on management, and a commitment to maintaining the highest hospitality standards in Coastal Virginia.
Schedule a consultation to learn how we can help you maximize your property’s potential — ethically, profitably, and sustainably.
References
AirDNA. (2025). Airbnb vs. Renting: Which investment strategy yields higher returns? https://www.airdna.co/blog/airbnb-vs-renting
City of Virginia Beach. (2023). Short-Term Rental (STR) regulations and Conditional Use Permit guidance. https://www.vbgov.com
National Weather Service. (2025). Climate data for Hampton Roads region. https://www.weather.gov
RentCafe. (2025). Virginia Beach rental market trends report. https://www.rentcafe.com
Virginia Department of Professional and Occupational Regulation (DPOR). (2025). Real estate licensing and property management requirements. https://www.dpor.virginia.gov
Zillow Research. (2025). Hampton Roads metro area rent data. https://www.zillow.com/research