In 2025, Colombia’s real estate market continues to evolve, and one of the most common questions among homeowners is whether it’s more convenient to rent long-term or use platforms like Airbnb for short-term rentals. Both models have their advantages and disadvantages, and profitability depends on several factors, such as location, property type, and tenant or guest profile. Below, we explore the key differences between both approaches and help you decide which one is more profitable for you.
Airbnb:
One of Airbnb’s biggest attractions is the possibility of earning significantly higher profits compared to traditional renting, especially in popular tourist destinations like Medellín, Cartagena, and Bogotá. Short-term rentals allow you to set higher prices during weekends, holidays, or peak seasons, which can result in higher monthly returns. Additionally, hosts can adjust their rates according to demand, using smart pricing tools.
Traditional Renting:
On the other hand, traditional renting offers more predictable and stable profitability. By renting a property long-term, the owner receives a fixed monthly income that is not subject to market fluctuations or seasonal demand. However, the monthly profitability may be lower compared to short-term rentals, depending on the location.
Which is more profitable?
If you have a property in a popular tourist area or a city with high traveler demand, Airbnb is likely to offer higher income. However, if you prefer stability and less active management, traditional renting may be a better option.
Airbnb:
Being an Airbnb host requires active and constant management. This includes responding to guest inquiries, coordinating check-ins and check-outs, ensuring the property is clean and well-maintained, and solving any problems that arise. If you can’t do it yourself, you may need to hire a management service, which would increase operating costs. Moreover, guests may not be as careful with the property as long-term tenants, leading to more wear and tear.
Traditional Renting:
Traditional renting typically requires less management effort. Once you find a tenant, you can sign a lease agreement and receive monthly payments without being as involved. However, there may still be tasks like repairs or attending to tenant needs. Additionally, long-term tenants tend to take better care of the property, which can reduce maintenance costs.
Which option is more convenient?
If you prefer to delegate management or have less interaction with tenants, traditional renting may be more convenient. However, if you’re willing to invest time or hire a property manager, Airbnb can be more profitable in the long run.
Airbnb:
Short-term renting on Airbnb offers greater flexibility. You can decide when to rent your property and when not to, allowing you to use it when you need it or even sell it if you wish. Moreover, Airbnb contracts tend to be more flexible than traditional rental agreements, letting you quickly adjust prices and conditions according to market demand.
Traditional Renting:
Long-term renting is more rigid, as tenants usually sign contracts for a year or more, meaning you can’t easily change terms or raise prices. Additionally, if the tenant doesn’t pay, it can be more difficult and slow to recover the property, potentially causing legal and financial issues.
Which is more flexible?
If you value flexibility and the ability to adjust your income based on demand, Airbnb is a more suitable option. Traditional renting is less flexible but offers long-term stability.
Airbnb:
In addition to management and maintenance costs, Airbnb hosts must pay platform fees, which can range between 3% and 15% of the reservation value. It’s also important to consider the taxes associated with short-term rentals, which differ from those for traditional rentals. Moreover, hosts must ensure the property is equipped with all the necessary amenities to attract guests.
Traditional Renting:
Additional costs for traditional renting are generally lower. The owner only needs to cover maintenance expenses and the corresponding taxes. However, there may be costs associated with property management if a real estate agency is hired.
Which has higher costs?
Airbnb can have higher operating costs due to platform fees and management expenses. Traditional renting has fewer additional costs but may generate lower monthly income.
Airbnb:
The demand for short-term stays in Colombia continues to grow, especially in tourist destinations like Cartagena, Medellín, Santa Marta, and Bogotá. In 2025, tourism remains one of the main sources of income for many Colombian cities, generating strong demand for accommodations on platforms like Airbnb.
Traditional Renting:
In major cities, the demand for traditional renting remains stable, especially in residential areas. However, long-term rental rates in some tourist zones may be lower due to competition with short-term rentals.
Which has higher demand?
Airbnb has an advantage in terms of demand in tourist destinations, while traditional renting may be more stable in long-term residential areas.
There is no one-size-fits-all answer for all property owners. It depends on several factors, such as the location of your property, the type of audience you want to attract, and your ability to manage the property.
Carefully evaluate market trends, your personal preferences, and your property’s location before making a decision. With the right strategy, either option can be profitable in 2025.
