Short-Term vs Long-Term Rental - What Is More Profitable in 2026?

Short-Term vs Long-Term Rental - Which Is More Profitable in 2026?

You have an apartment and want to rent it out. The fundamental question is: by the night or by the month? Short-term rental tempts with higher rates - an apartment in Krakow on Airbnb can earn 6,000-8,000 PLN per month, while the same apartment on a long-term lease brings in 3,000-3,500 PLN. But this difference isn't as straightforward as it appears at first glance. Costs, time, risk, formalities - when you add it all up, the answer might surprise you. And in 2026, with new regulations and the CWTON (Central Register of Tourist Accommodation) register, the equation changes even more.

Key Takeaways

• Short-term rental can bring 2-3 times higher revenue, but after deducting costs (cleaning, wear, documentation, management) the difference often drops to 30-50%
• New regulations from May 2026 (CWTON, fire safety, GDPR) increase compliance costs for short-term rental by an estimated 3,000-5,000 PLN annually
• The break-even point for short-term rental in most Polish cities is around 55-65% occupancy - below that threshold, long-term rental is more profitable
• A hybrid model (short-term in season, long-term off-season) can be the best compromise
• From 2029, municipalities will be able to introduce short-term rental restriction zones - this is an additional regulatory risk that doesn't apply to long-term rental

Comparison in numbers: same four walls, two different models

Before we dive into the details, let's do a concrete calculation. Take a two-room apartment (50 m2) in the center of a major Polish city - let's say Wroclaw. Market value: around 500,000 PLN. Let's see how the math works for both models.

Scenario 1: Long-term rental

• Monthly rent: 3,200 PLN (market rate for this size and location)
• Annual gross revenue: 38,400 PLN
• Annual costs: homeowners' association management fee (~4,800 PLN), insurance (~800 PLN), minor repairs and maintenance (~1,500 PLN), vacancy period - assume 1 month per year (~3,200 PLN in lost rent)
• Total annual costs: approximately 10,300 PLN
• Annual net income: approximately 28,100 PLN
• Monthly net income: approximately 2,340 PLN
• Time invested monthly: 2-4 hours (tenant communication, minor issues)

Scenario 2: Short-term rental

• Average nightly rate: 280 PLN (accounting for seasonality: higher in summer and weekends, lower in January-February)
• Annual occupancy: 65% (237 nights per year - a realistic average result for a good property)
• Annual gross revenue: 66,360 PLN
• Annual costs: cleaning between guests (~80 PLN x 120 stays = 9,600 PLN), higher utility consumption than with LTR (~6,000 PLN), toiletries, coffee, cleaning supplies (~2,400 PLN), laundering bedding and towels (~3,600 PLN), equipment depreciation and refreshing (~4,000 PLN), booking platform commission (~9,300 PLN, i.e., 14% of revenue), host liability insurance (~1,200 PLN), CWTON documentation and compliance (~3,500 PLN), property management and administration (~3,000 PLN if self-managed - valuation of your time; or 15-20% of revenue if you hire a management company)
• Total annual costs: approximately 42,600 PLN (with self-management)
• Annual net income: approximately 23,760 PLN
• Monthly net income: approximately 1,980 PLN
• Time invested monthly: 20-40 hours (guest communication, cleaning coordination, check-ins, problem-solving)

Surprised? At 65% occupancy with self-management, net income from short-term rental can actually be LOWER than from long-term rental. And on top of that, you invest 5-10 times more time. But note - this is at average occupancy. At 80% occupancy with higher rates, the math changes. And that's precisely why this decision isn't as obvious as it seems.

Revenue: higher ceiling, lower floor

The biggest advantage of short-term rental is earnings potential. In a good location, with an attractive property and professional management, gross revenue can be 2-3 times higher than from long-term rental. But the keyword here is "potential."

Factors affecting STR revenue

• Location - city center in a tourist hub (Krakow, Gdansk, Warsaw) vs. suburbs of a small town. The difference can be enormous
• Seasonality - in summer and on long weekends, occupancy can reach 90-100%, but in January-February it drops to 30-40%
• Competition - in popular locations, new Airbnb properties appear every month, which drives prices down
• Property quality - platform ratings directly affect visibility and the price you can command
• Dynamic pricing - skillful price management (higher on weekends, in season, during events) can increase revenue by 15-25%

Revenue stability with LTR

Long-term rental means predictability. The same amount in your account every month. No seasonality, no dependence on weather, tourist events, or pandemics. Remember 2020? STR hosts lost revenue overnight. Long-term rental property owners - didn't.

This stability has concrete value. If you're financing the apartment purchase with a mortgage, the bank looks more favorably on stable long-term rental income than on variable Airbnb revenue.

Costs: the hidden side of the equation

This is where many beginner hosts make a mistake - they only see revenue without counting costs. And short-term rental costs are significantly higher than long-term rental.

Short-term rental costs

• Cleaning - 60-120 PLN after each guest. With 120 stays per year, that's 7,200-14,400 PLN. This is your biggest operational cost
• Utility consumption - a short-stay guest uses more energy and water than a long-term tenant (more frequent laundry, toiletry sets, heating on full)
• Equipment wear - bedding, towels, dishes, furniture wear out faster. Budget 3,000-5,000 PLN annually for replacements
• Toiletries and supplies - shampoos, soaps, dishwasher pods, coffee, tea, toilet paper. Small amounts individually, but on a yearly scale that's 2,000-3,000 PLN
• Platform commissions - Airbnb charges 3% from the host (or 14-16% in the split model), Booking 15-18%. On 60,000 PLN revenue, that's 9,000-10,800 PLN annually
• Compliance and documentation - this is a new cost in 2026. CWTON registration, fire safety documentation, house rules, agreements, GDPR - either you do it yourself (time) or outsource it (money). More about these costs in the article on short-term rental costs in 2026

Long-term rental costs

• Insurance - standard rental policy, 600-1,000 PLN annually
• Repairs and maintenance - faucet, boiler, washing machine. Budget 1,000-2,000 PLN annually
• Vacancy periods - time between tenants. Average is 1-2 months per turnover (finding a new tenant, refreshing the apartment)
• Tenant risk - a non-paying tenant is a cost that's hard to quantify. In the worst scenario, eviction takes months and losses reach tens of thousands of zlotys

The key difference: LTR costs are low but predictable, STR costs are high but scale with revenue (more guests = more cleaning, but also more money).

Time - the currency you forget about

This is a factor that many analyses overlook, yet it's crucial. Your time has value.

Short-term rental - how much time does it take?

With self-management, realistically:

• Guest communication - answering inquiries, pre- and post-stay messages, problem-solving: 5-10 hours per month
• Cleaning coordination - scheduling with the cleaning team, quality control: 3-5 hours per month
• Check-ins - if in person, each takes 20-40 minutes: 5-10 hours per month
• Price and calendar management - updating prices, blocking dates, synchronizing platforms: 2-3 hours per month
• Documentation and administration - agreements, guest register, receipts: 2-4 hours per month
• Minor repairs and restocking - shopping, minor repairs, equipment replacement: 3-5 hours per month

Total: 20-37 hours per month. If your hourly rate is worth 80 PLN, that's an additional cost of 1,600-2,960 PLN per month that rarely gets factored into calculations.

Long-term rental - how much time does it take?

Dramatically less:

• Tenant contact - occasional email or phone call about a repair: 1-2 hours per month
• Administration - payment monitoring, bills: 1 hour per month
• Repairs - arranging a plumber or electrician a few times a year: average 1 hour per month

Total: 3-4 hours per month. The difference is enormous.

You can of course hire a management company for STR. But that's an additional cost of 15-25% of revenue, which dramatically reduces your net income.

Legal aspects - this is where 2026 gets interesting

Short-term and long-term rental are two different legal worlds. And in 2026, the difference becomes even greater.

Short-term rental - legal requirements

• CWTON registration - mandatory from May 20, 2026. Without it, you cannot legally rent by the night. Penalties for non-registration reach 50,000 PLN
• Fire safety declaration - you must submit a declaration of compliance with fire safety requirements (smoke detectors, fire extinguisher, evacuation plan)
• House rules - a mandatory document describing the rules for using the property
• Guest register - you must maintain a register of all guests with their data
• GDPR - information obligations toward guests, privacy policy, legal basis for data processing
• Business registration - in many cases, short-term rental requires registering a business activity
• Inspections - Sanepid (sanitary inspection), fire department, and municipal office have the right to inspect your property

Long-term rental - legal requirements

• Lease agreement - a standard civil law agreement, preferably for a fixed term
• Tax office notification - obligation to report rental income
• Tenant protection - the ustawa o ochronie praw lokatorów (Tenant Protection Act) limits your options for terminating the agreement and raising rent
• Handover protocol - when transferring and returning the apartment

The difference in legal complexity is obvious. Short-term rental in 2026 requires significantly more documentation and compliance with more requirements. On the other hand, long-term rental has its own legal risks - primarily the difficulty of evicting a non-paying tenant. In Poland, eviction proceedings can take 12-24 months, during which time you receive no rent and can't rent the apartment to someone else. More about the new regulations in the article on new 2026 regulations.

Taxes - different options, different rates

Taxation is another dimension where both models differ. A detailed analysis is in our article on short-term rental taxes in 2026, but here are the key differences:

Short-term rental

• Ryczałt (flat-rate) 8.5% on revenue up to 100,000 PLN, 12.5% above that amount - the most popular option for hosts
• Tax scale (12% and 32%) or linear tax (19%) - if you operate a registered business
• VAT - accommodation services are subject to 8% VAT (if you exceed the 200,000 PLN exemption limit)
• Ability to deduct costs - with the tax scale or linear rate, you can deduct costs (cleaning, equipment, renovations, platform commissions)

Long-term rental

• Ryczałt (flat-rate) 8.5% on revenue up to 100,000 PLN, 12.5% above - the same rate as STR
• No ability to deduct costs with the flat-rate - you pay tax on total revenue, not income
• No VAT - long-term residential rental is VAT-exempt

In practice, if your operational costs are high (and in STR they usually are), taxation on general rules with cost deduction may be more advantageous than the flat-rate. But it requires full accounting. Consult this with an accountant - every situation is different.

The 2026 factor: how new regulations change the calculation

2026 is a turning point for short-term rental in Poland. New regulations implementing EU Regulation 2024/1028 introduce several changes that directly affect STR profitability:

New compliance costs

• CWTON registration - the registration process itself is a one-time cost of time or money (if you outsource). But maintaining registration requires ongoing documentation
• Fire safety documentation - smoke detectors, fire extinguisher, evacuation plan, inspections. One-time implementation cost: 500-1,500 PLN. Annual maintenance cost: 200-500 PLN
• Formal documents - house rules, agreements, GDPR clauses, guest register. Preparing from scratch: 2,000-5,000 PLN (lawyer) or 200-500 PLN (ready-made templates). Ongoing maintenance: time or money
• Estimated additional compliance cost annually: 3,000-5,000 PLN

Short-term rental restriction zones

This is a risk that's still on the horizon, but worth factoring into long-term calculations. From 2029, municipalities will be able to introduce zones where short-term rental is restricted or prohibited. If your apartment is in a tourist city center - and that's exactly where STR is most profitable - you risk not being able to continue nightly rental in a few years.

Long-term rental isn't burdened with this risk. No regulation restricts renting an apartment for residential purposes.

Platform requirements

From May 2026, booking platforms (Airbnb, Booking, Vrbo) will be required to verify CWTON registration numbers. Listings without a valid number will be removed. This isn't a threat - it's an obligation imposed on platforms by EU regulation. If you don't register in CWTON, you lose your distribution channel.

Risk profile - what are you more afraid of?

Each rental model has its specific risks. Your choice should depend on which risks you're willing to accept.

Short-term rental risks

• Seasonality - revenue can fluctuate by 60-70% between peak season and the dead period
• Regulatory changes - new regulations can change the rules of the game at any time (as we're seeing in 2026)
• Competition - the barrier to entry is low, so new properties keep appearing
• Damage - more frequent guest rotations = more chances for damage
• Reputation - one bad review on Airbnb can lower your occupancy for months
• Neighbor conflicts - noisy guests, complaints to the homeowners' association
• Force majeure events - pandemic, economic crisis, armed conflict in the region - tourism reacts immediately

Long-term rental risks

• Non-paying tenant - the biggest risk. Eviction in Poland is a legal and time nightmare
• Damage discovered after move-out - the tenant lived there for 2 years, and only after they leave do you see the apartment's condition
• Limited rent increase options - statutory limits on increases
• Lack of flexibility - you can't quickly recover the apartment for personal use or sale
• Apartment wear - a single tenant's long stay means wear you only see after years

The hybrid model - best of both worlds?

More and more apartment owners are opting for a hybrid approach. What does it involve?

Option 1: Seasonal split

Short-term rental during peak season (May-September, long weekends, New Year's Eve, holidays), long-term rental during the dead months (November-March). This requires a flexible agreement with the long-term tenant - e.g., a fixed-term lease from November 1 to March 31.

Advantages: you maximize revenue in season while having stable income off-season. Disadvantages: harder to find a tenant for half a year, and you need to prepare the apartment twice a year (once for STR guests, once for a LTR tenant).

Option 2: Mixed portfolio

If you have more than one apartment, you can diversify: some for short-term rental, some for long-term. This is a natural risk diversification strategy.

Example: you have three apartments. Two in the city center you rent by the night (high STR potential), one in the suburbs - long-term (lower tourist potential, but stable income). Stable LTR income covers fixed costs, STR revenue generates higher profit in season.

Option 3: Medium-term rental

Rental for 1-6 months - e.g., for relocated workers, students for a semester, people in the middle of moving. This combines the advantages of both models: higher rate than LTR (but lower than STR), fewer turnovers than STR, lower eviction risk than LTR. This model is growing in popularity and worth considering.

Decision framework: when STR, when LTR?

Here's a practical list of criteria to help you make your decision:

Short-term rental makes sense when:

• The apartment is in a location attractive for tourism or business (major city center, near attractions, train station, airport)
• You have time or budget for management (either self-managing or hiring a company)
• You're ready to meet all formal requirements (CWTON, fire safety, GDPR, house rules)
• You realistically estimate occupancy at least 60-65%
• You have a financial buffer to cover dead months
• The apartment is well-equipped and visually attractive
• You're not afraid of regulatory changes and are ready to adapt

Long-term rental makes sense when:

• The apartment is outside the main tourist area (suburbs, smaller cities)
• You value stability and income predictability
• You don't have time or desire for active management
• You're financing the apartment with a mortgage and need steady income for payments
• You don't want to invest in meeting CWTON and compliance requirements
• You plan to hold the property long-term (10+ years)
• You prefer minimal time commitment

Break-even analysis: what occupancy percentage do you need?

This is the key number that determines at what occupancy level short-term rental becomes more profitable than long-term rental.

Continuing our Wroclaw example (50 m2 apartment, LTR rent: 3,200 PLN/month):

• Annual net income from LTR: 28,100 PLN
• Average STR nightly rate: 280 PLN
• Average variable cost per STR night: approximately 120 PLN (cleaning, wear, platform commission, supplies)
• Annual fixed STR cost: approximately 12,000 PLN (insurance, compliance, depreciation, administration)

Equation: (280 - 120) x N - 12,000 = 28,100, where N is the number of occupied nights per year.

Solution: 160 x N = 40,100, so N = 251 nights, which gives 69% occupancy.

In other words: in our example, you need at least 69% occupancy for STR to be more profitable than LTR. Below that threshold - long-term rental wins. Above it - short-term rental does. But remember: this is a calculation for a specific example. In your case, the numbers may differ depending on location, prices, and costs.

As a benchmark: average Airbnb occupancy in major Polish cities is 55-70%, with Krakow and Warsaw potentially reaching 75-80% for good properties, while smaller cities drop to 40-50%.

Frequently Asked Questions

How much can you earn from short-term vs long-term rental?

Gross revenue from short-term rental is typically 2-3 times higher than from long-term rental. However, after deducting operational costs (cleaning, wear, platform commissions, compliance), the difference drops to 20-50% in favor of STR - and that's with good occupancy (above 65%). With weaker occupancy, long-term rental can be equally or even more profitable. The key is to calculate net income, not gross revenue.

Is short-term rental still worth it after the new regulations?

Yes, but the margin narrows. New regulations related to CWTON and EU Regulation 2024/1028 add an estimated 3,000-5,000 PLN in annual compliance costs. For large, well-run properties with high occupancy, this is an acceptable cost. For small properties with low occupancy, it could be the final nail in the profitability coffin. The key question: does your property have sufficient potential to cover these additional costs and still generate higher profit than LTR?

Can I combine short-term and long-term rental?

Yes, a hybrid model is entirely possible and increasingly popular. You can rent short-term in season (May-September) and long-term off-season. You can also have some apartments on STR and others on LTR. Remember, however, that if you rent short-term even for part of the year, you must be registered in CWTON (Central Register of Tourist Accommodation) and meet all compliance requirements. Registration applies to the property, not the rental period.

What occupancy percentage do I need for STR to be worthwhile?

It depends on location and costs, but the general rule for most Polish cities: you need at least 55-65% annual occupancy for short-term rental to be more profitable than long-term rental. In locations with high nightly rates (Krakow, Gdansk), the threshold can be lower (50-55%). In smaller cities with lower rates - higher (65-70%). Calculate this for your specific situation using the formula from our article.

Does long-term rental also require CWTON registration?

No. CWTON (Centralny Wykaz Turystycznych Obiektów Noclegowych - Central Register of Tourist Accommodation) applies exclusively to short-term tourist rental - meaning nightly or short-period rental for tourist or recreational purposes. Standard long-term residential rental (lease for at least several months) does not require CWTON registration. This is one of the significant differences in legal complexity between the two models.

Summary

There's no universal answer to the question "which is more profitable." Short-term rental offers higher earnings potential but comes with higher costs, greater time investment, and growing legal complexity - especially in 2026. Long-term rental provides stability and peace of mind, but lower revenue and its own risks (non-paying tenants, difficult eviction).

The best decision is based on concrete numbers for your situation: location, potential occupancy, your time, your risk tolerance. Do the math. Calculate the break-even point. And only then decide.

If you're choosing short-term rental - or already running one - the new 2026 regulations don't have to be a nightmare. The HostReady Package contains the complete documentation needed for CWTON registration: house rules, agreements, GDPR clauses, fire safety declaration, and 12 other fill-in document templates. Instead of spending weeks preparing paperwork, you can have everything ready in a few hours. Check the available packages and focus on what you do best - hosting guests.