With the influx of tourists seeking both short escapes and longer retreats, property owners are often faced with the decision: should they opt for short-term rentals that promise constant turnover and high rates, or invest in long-term rentals that offer stability and peace of mind?

The short-term rental market has gained significant momentum, due in part to the popularity of “do-it-yourself,” platforms like Airbnb and VRBO which allow owners to market their own properties. Short-term rentals often yield higher nightly rates, particularly during peak tourist seasons, allowing owners to maximize their income. However, this approach requires an understanding of local regulations, especially taxation, as well as a commitment to maintaining the property and providing quality guest experiences.

On the other hand, long-term renting offers stability and predictability. With a steady stream of monthly rental income, property owners can enjoy a consistent cash flow and reduced tenant turnover. This approach may appeal to those who prefer less active management of their properties, as long-term tenants typically require fewer interactions than short-term guests. Additionally, long-term leases often help property owners avoid local taxation, and the wear and tear associated with frequent tenant changes.

The choice between short-term and long-term rentals ultimately depends on an investor’s financial goals, time availability and risk tolerance. Investors seeking higher returns and willing to oversee frequent bookings may find short-term rentals appealing. Conversely, investors prioritizing stability and minimal involvement may find long-term rentals more appealing.

However, given the ever-changing nature of Puerto Peñasco’ s real estate market, I recommend a hybrid approach. For example, landlords could opt for long-term rentals during the typically slower off-seasons for up to six months, then transition to short-term rentals during peak tourist times. Many investors successfully manage a portfolio that combines both rental types. Nonetheless, the question of whether to pursue short-term or long-term rentals remains a pivotal decision for most property owners.

The good news is Puerto Peñasco’ s real estate market offers ample opportunities for both strategies. By carefully considering market trends, property location and individual preferences, investors can maximize their returns while contributing to the city’s thriving housing landscape.

About the author: Joseph Sanchez is a AMPI-certified real estate agent with RE/MAX Legacy, developer of Viviente at Sandy Beach, president of Rocky Point Home Builders and a U.S. Veteran. He resides here in Puerto Peñasco with his wife and three children and is originally from Chicago. For more information visit www.rockypointrealestate911.comon the internet.