STR vs. Long-Term Rentals: Which One's Really Worth It?

So you’re finally ready to invest in real estate—cue the Pinterest boards, the dreams of mailbox money, and maybe even a folder full of Zillow screenshots. But now comes the big question:
Do you go all in on a short-term rental (STR) or play the long game with a long-term tenant (LTR)?

I get this question a lot, especially from new investors or busy professionals who want to build wealth but don’t know where to start. As someone who’s navigated both paths—and helped clients do the same—here’s my honest, New Orleans-rooted breakdown of what works, what doesn’t, and how to figure out what fits your lifestyle and goals.

Let’s Talk Returns: What’s the Real Money Look Like?

• Short-Term Rentals:
  When done well (and legally), an STR can bring in 2x to 3x more revenue than a traditional rental. Think: fully booked during festival season, high nightly rates in the right neighborhoods, and enough cash flow to make you feel like you cracked the code.

  But here’s the fine print:

  • You’re hosting, managing, updating pricing, dealing with reviews, and constantly staying ahead of trends.

  • You'll need to furnish and design the space with intention. (No mismatched Goodwill couches here.)

  • And STR income can be feast or famine if you don’t have a strong marketing and pricing strategy.

  Long-Term Rentals:
  LTRs won’t bring the same flash, but they will bring stability.

  • You get one tenant, one lease, and usually a set rent for 12 months.

  • You’re not worried about seasonal slowdowns or surprise party guests.

  • And you don’t have to provide a coffee bar, welcome binder, or fresh linens.

  Lifestyle Check: What’s Your Energy + Involvement Level?

  Let’s be honest—some of y’all are built for hospitality. You like greeting guests, curating experiences, and maybe even flexing your interior design skills. STRs let you lean into that energy.

  Others? You want real estate to build wealth, not become your part-time job. You’ve got kids, a full-time role, or maybe you're just tired. You want to collect rent, handle maintenance when it comes up, and otherwise be left alone. LTRs will bless you with that peace.

  Here’s how I explain it to clients:

  • STR = more income, more involvement

  • LTR = less income, less stress

  Know the Rules: Especially in New Orleans

  In New Orleans, STRs are highly regulated.
  We’ve got zoning rules, permit requirements, and neighborhood restrictions that change more often than Saints quarterbacks. One ordinance can shift your whole plan—so you need to go in with your eyes open and your paperwork tight.

  LTRs, on the other hand, don’t come with the same level of scrutiny. Yes, Louisiana tenant laws still matter—but overall, LTRs are more stable in the eyes of city hall.

  Real Talk About Costs (and Surprises)

  STR Costs:

  • Upfront: furnishing, smart locks, décor, photography

  • Ongoing: utilities, internet, cleanings, supplies, booking platform fees

  • Add property management? Now you're splitting that income.

  LTR Costs:

  • Lower upfront costs

  • Tenants pay utilities

  • Property turns are rare if you screen well

  • Biggest risks: vacancy and evictions (which you can often prevent with smart leasing and local support)

  But What About Me?

  Personally, I love the creativity of STRs. I love taking an empty or tired space and transforming it into something people remember. But I’ve also learned that not every property, not every season of life, and not every client is a match for the STR hustle.

  I’ve had clients:

  • Use STR income to pay down a mortgage in 3 years

  • Mix both models (STR during Jazz Fest, LTR the rest of the year)

  • Shift from STR to LTR when babies, job changes, or burnout kicked in

  This is your journey—and it can evolve.

  Final Word: STR vs. LTR—Which One Wins?

  There’s no one-size-fits-all. But here’s what I always say:

  • Go STR if you want to be hands-on, optimize income, and treat it like a business

  • Go LTR if you value stability, have less time, or are building a slower, steadier portfolio

  • Do both if you’re curious, creative, and want to test what works for you

  And whatever you choose—run your numbers, know the rules, and build a team you can trust.

  Ready to Find the Right Investment for You?

  Whether you’re STR-curious, LTR-loyal, or not sure where to start, I’d love to help you figure it out. I work with everyday people—especially healthcare workers and busy professionals—who want to build wealth through real estate without losing themselves in the process.

  Let’s find a space that fits your life and your vision.

  Reach out anytime—kayla@kaylalovesnola.com