
Short term vs long term rental: key differences explained
Short term or long term rental? Key differences and which option suits you best.
Short term rental vs long term rental: key differences explained
When looking for accommodation, one of the first decisions is choosing between a short term rental and a long term rental. Both options offer different advantages depending on the length of stay, flexibility needs and personal situation.
For professionals relocating for work, expats, students or digital nomads, short term rentals often provide the flexibility required for temporary stays. On the other hand, long term rentals are more suitable for people planning to settle in one place for a longer period.
In this guide we explain the differences between short term and long term rentals, their advantages and when each option may be the best choice.
Table of contents
- What is a short term rental
- What is a long term rental
- Main differences between short and long term rentals
- Advantages of short term rentals
- Advantages of long term rentals
- Which option is better for expats or professionals
- Frequently asked questions about rental types
What is a short term rental
A short term rental refers to accommodation rented for a limited period, usually from a few weeks to several months.
In many cities, short term rentals are designed for people who need temporary housing due to:
- Work assignments
- Business travel
- Temporary relocation
- Academic programs
- Remote work or digital nomad stays
These properties are often fully furnished and ready to move in, making them convenient for people arriving in a new city.
In Spain, many short term rentals fall under seasonal rental contracts, regulated by the Ley de Arrendamientos Urbanos (LAU) for stays that are not considered permanent residence.
What is a long term rental
A long term rental refers to housing rented for extended periods, typically one year or longer.
This type of rental is usually intended for people who plan to use the property as their main residence.
Long term rentals often involve:
- Longer contracts
- More stable rental conditions
- Lower monthly costs compared to short stays
In Spain, long term residential rentals are also regulated by the Ley de Arrendamientos Urbanos, which provides tenants with certain protections and minimum contract durations.
Main differences between short and long term rentals
Although both rental models involve renting a property, they differ in several important ways.
Duration
Short term rental
Typically ranges from one month to several months, depending on the agreement.
Long term rental
Usually lasts one year or more, with possible contract renewals.
Flexibility
Short term rental
More flexible contracts designed for temporary stays.
Long term rental
Less flexible because contracts are usually longer and more structured.
Furnishing
Short term rental
Often fully furnished and equipped, including kitchenware, furniture and sometimes utilities.
Long term rental
Properties may be unfurnished or partially furnished, requiring tenants to bring their own furniture.
Cost structure
Short term rental
Monthly rent is typically higher but may include services such as utilities, internet or cleaning.
Long term rental
Lower monthly rent, but tenants usually pay utilities and services separately.
Advantages of short term rentals
Short term rentals offer several benefits, particularly for people who are temporarily relocating.
Flexibility
Contracts can adapt to the duration of a project, assignment or stay.
Move-in ready housing
Most properties are fully furnished, making relocation easier.
All-inclusive services
Utilities, internet and maintenance are often included.
Ideal for mobility
Short term rentals are popular among expats, remote workers and professionals on temporary assignments.
Advantages of long term rentals
Long term rentals are better suited for people planning to stay in one location for an extended period.
Lower monthly cost
Rent tends to be more affordable over longer contracts.
Stability
Tenants benefit from more stable housing conditions.
Personalisation
Residents can furnish and decorate the property to suit their lifestyle.
Longer tenant protections
Many countries offer legal protections for tenants in long term residential leases.
Which option is better for expats or professionals
The best rental option depends on the purpose and length of the stay.
Short term rentals are usually the best option for:
- Expats relocating for work
- Temporary corporate assignments
- Remote workers and digital nomads
- Professionals testing a city before settling
Long term rentals may be more suitable for:
- Families relocating permanently
- Residents planning to stay for several years
- People seeking lower housing costs over time
In many cases, professionals arriving in a new city start with short term accommodation before moving to a long term rental once they settle.
Frequently asked questions about rental types
What is considered a short-term rental?
A short-term rental generally refers to accommodation leased for a period ranging from a few weeks to several months, depending on local regulations and agreements. In Spain, this is usually formalised as a seasonal rental contract (contrato de temporada), regulated under the Spanish Urban Leases Act (LAU).
What's the main difference between a short-term and a long-term rental?
The key difference lies in duration and flexibility: a short-term rental typically lasts from weeks to months and comes fully furnished, while a long-term rental extends for a year or more, with more stable contracts and, generally, a lower monthly cost.
Is a short-term rental more expensive than a long-term one?
Often, yes. Short-term rentals tend to have higher monthly prices because they include furniture, utilities and flexible contracts, all of which push up the rent compared to a long-term rental.
Can short-term rentals be extended?
In many cases, yes, as long as both the tenant and the landlord agree. However, extending a seasonal rental doesn't automatically convert it into a long-term rental contract, nor does it grant the same tenant protections.
Is it cheaper to rent long-term?
Generally, yes. A long-term rental comes with a lower monthly cost, although tenants usually pay utilities separately and commit to a longer contract.
Which rental option is best for expats and digital nomads?
Many expats and digital nomads prefer to start with a short-term rental, since it offers flexibility and fully furnished accommodation, before moving on to a long-term rental once they settle permanently in the city.
