The Lurking Dangers of Switching from Airbnb to Long-Term Rental: What Every Landlord Should Watch Out For

The real estate market is shifting, and many property owners who once thrived on the short-term rental boom are now considering switching their Airbnb properties into long-term rentals. Rising regulations, higher Airbnb fees, increased competition in highly saturated markets and unpredictable occupancy rates have made the idea of steady monthly rent checks very appealing.

But while long-term rentals promise consistency, the transition isn’t always smooth. In fact, many landlords underestimate the risks of trading weekend guests for year-long tenants. Here’s what you need to know before you make the switch:

Long term rentals can promise higher returns on your inconsistent AirBnB property, but there are hidden land mines!

1. Tenant Rights Are Stronger Than Guest Rights

Airbnb guests are “licensees”—their right to stay is temporary and easily revoked. Long-term tenants, however, gain legal protections the moment they move in. Depending on your state, eviction may require lengthy court proceedings and strict compliance with notice requirements. What feels like a guaranteed income stream can quickly turn into months of unpaid rent if a tenant defaults and refuses to leave.

2. Screening Matters More Than Ever

Airbnb’s platform offers background checks, guest reviews, and a built-in deposit system. With long-term tenants, that responsibility shifts entirely to you. Failing to thoroughly vet tenants with background checks, credit reports, and income verification can expose you to financial and legal headaches. One bad tenant can cost more than a year of inconsistent Airbnb bookings.

3. Lease Agreements Must Be Rock-Solid

An Airbnb listing is simple—house rules, cleaning fees, and nightly rates. A long-term lease is a binding legal document that should spell out rent payment terms, maintenance responsibilities, late fees, renewal terms, and eviction procedures. Using a vague, ChatGPT generated or outdated lease (or worse, no written lease at all) leaves you exposed to disputes that are expensive to resolve.

4. Maintenance Obligations Increase

Short-term guests rarely wear down a property the way a full-time resident does. With long-term rentals, tenants will expect working appliances, fast repairs, and consistent upkeep. And expect lots of little things to wear out if you substituted cheap quality items for investing in high quality items like blenders, glassware, serve ware, cooking utensils, and pots and pans. And yes, if you included them in the rental and rate, you have to replace them! Landlords are also legally required to meet “habitability standards,” and ignoring issues like plumbing, pest control, or air conditioning can land you in court.

5. Financial Predictability Comes With New Risks

Yes, long-term tenants provide a steady paycheck, but with stability comes slower flexibility. You can’t raise rent mid-lease or adjust pricing to match demand the way you can on Airbnb. Plus, if your tenant stops paying, you may face months of carrying costs while pursuing eviction. That “steady income” can quickly turn into a financial drain.

6. Insurance and Liability Changes

Many Airbnb hosts carry short-term rental insurance, but long-term rentals require landlord policies that cover tenant occupancy, liability, and property damage. If you don’t update your coverage, you may find yourself without protection in the event of fire, flood, or tenant-related damage.

How to Make the Transition Safely

If you’re ready to convert your Airbnb into a long-term rental, take these steps to protect yourself:

Hire an attorney to draft or review your lease. A standardized lease protects your rights and sets expectations clearly.

Implement thorough tenant screening—credit, background, and rental history checks are non-negotiable.

Know your state’s landlord-tenant laws so you don’t unintentionally violate notice, eviction, or deposit rules.

Budget for property maintenance—long-term tenants will expect more support than short-term guests.

Update your insurance policy to reflect your property’s new use.

Final Thoughts

The switch from Airbnb to long-term rentals can be smart and profitable—but it’s not without its pitfalls. With the right contracts, processes, and legal protections in place, you can enjoy the stability of consistent rental income while minimizing risks.

Bottom line: Don’t treat long-term tenants like weekend guests. A little preparation today can save you thousands tomorrow. Book your consultation for REAL ESTATE LAW today and ask about our Landlord's Package (an all-in-one binder of ready to use leases, addendums, template notices and communications, checklists, and record keeping)!