Should You Go Long-Term or Airbnb?

Investors across the country are weighing a big decision… Should you put your property on Airbnb/VRBO or stick with the tried-and-true long-term lease? At first glance, short-term rentals look tempting with flashy nightly rates.

But when you peel back the layers, with things such as occupancy, management headaches, regulations, and real profits, the long-term strategy often wins out.

In Charlotte’s growing market, steady rental checks usually outshine the uncertainty of chasing weekend guests.

Headline Numbers vs. Reliable Returns

Airbnb hosts in Charlotte advertise nightly rates between $140 and $200. Sounds great, right? But here’s the catch: average occupancy is only 50–60% of nights booked. That means a property could sit empty nearly half the month. According to AirDNA, the average Airbnb listing in Charlotte grosses around $17,600 a year, and that’s before taxes, cleaning, and platform fees.

Now compare that with a long-term lease. The average Charlotte rent is about $1,541 per month, with occupancy around 92% citywide. That equates to $18,000–$20,000 in annual income, collected like clockwork, with far less effort. Long-term rentals may not have the flashy peak weekends, but they deliver a dependable paycheck every month.

Full Houses vs. Empty Nights

With a long-term tenant, vacancy is a minor inconvenience. A property may sit on the market a few weeks between leases, but most Charlotte landlords collect rent for 11 or 12 months each year.

Short-term rentals are different. Bookings spike during big events like NASCAR weekends, but tumble in the off-season. The average Charlotte Airbnb is occupied only 15–18 nights per month. That leaves long stretches with zero revenue, yet owners still pay for utilities, internet, and upkeep during those vacant nights. Stability matters, and long-term rentals win that race every time.

The Workload Nobody Talks About

Here’s what many Airbnb “success stories” gloss over: it’s a job. Hosts answer inquiries at all hours, coordinate cleanings after every stay, replenish supplies, and scramble to handle maintenance issues immediately (because bad reviews kill bookings).

If you outsource, management companies charge 25–40% of gross income for short-term rentals. Compare that to long-term property management fees in Charlotte, which run 8–12% of monthly rent. In other words, even if an Airbnb grosses slightly more, the high overhead and effort erode the advantage. Long-term rentals let you hand off the keys, sign a lease, and enjoy true passive income.

Wear, Tear, and Hidden Costs

Short-term guests treat your property like a hotel, which means more wear and tear. Furniture, linens, and appliances all get heavier use and need more frequent replacement. You’ll also pay for utilities, streaming services, and insurance tailored for transient occupancy.

Long-term tenants, on the other hand, bring their own furniture, pay their own utilities, and generally take better care of a place they call home. Turnover is measured in years, not days, which means fewer headaches and lower costs for owners.

Don’t Forget About Taxes

Another significant difference in investing strategies is the consideration of taxes. Long-term leases are exempt from hotel taxes, but short-term rentals are subject to state sales tax (about 7%) and Mecklenburg County’s occupancy tax (about 6%) on each booking. Airbnb handles the collection, but it still impacts your revenue.

Both strategies offer depreciation and expense write-offs, but long-term rentals fit cleanly into tax law without complicated bookkeeping or self-employment tax concerns.

And if you want to grow your portfolio, you can use a 1031 exchange to swap one Charlotte rental for another and defer capital gains.

Rules, Regulations, and Risks

Perhaps the biggest cloud over Airbnb in Charlotte is regulation. The city requires a zoning permit and an annual business license for short-term rentals. As of mid-2025, enforcement has been lax, but that could change at any time. Neighborhood associations and HOAs are increasingly cracking down on “party houses” and mini-hotels, too.

Long-term rentals follow standard landlord-tenant law and enjoy one of the most landlord-friendly environments in the Southeast. For investors, that legal certainty is worth its weight in gold.

ROI: The Risk-Adjusted Reality

A well-managed Airbnb can sometimes generate more gross income than a long-term lease, which is exciting to consider!

However, when we take into account factors like vacancy risk, management costs, higher expenses, and regulatory uncertainties, the traditional long-term rental often provides comparable or even better net returns with much less stress and effort.

Consider this… Do you want an investment that’s like a business you’re constantly managing, or one that pays you consistently month after month while growing in value? For many Charlotte investors, especially busy professionals and business owners, the second option makes more sense.

Why Charlotte Long-Term Rentals Win

Charlotte is one of the fastest-growing metros in the country, attracting people for jobs, schools, and lifestyle, fueling consistent tenant demand. This makes long-term rentals a reliable strategy with steady rent growth, high occupancy, and favorable laws. The Queen City offers investors predictable returns and less stress.

Short-term rentals may have glitz, but long-term rentals deliver consistent income, lower risk, and better peace of mind. In Charlotte, that’s the kind of wealth-building strategy that stands the test of time.

Ready To Go For The Long-Haul?

If you’re serious about investing in Charlotte real estate, don’t get distracted by the hype of nightly rates and guest reviews. Long-term rentals provide the kind of steady, tax-smart, low-stress income that builds wealth and funds retirements.

At Henderson Investment Group, we help investors build, manage, and expand rental portfolios throughout the Charlotte area. We offer a range of services, from turnkey property management to strategic acquisition, making it easy to reap the benefits of long-term investing.

Ready to check out your next investment in Charlotte? Sign up now to start browsing homes, and let’s build your future with long-term rentals.