Lesson: Calculate Your Potential ROI

Lower is safer. Break-even occupancy is the share of nights you need booked just to cover costs, so the further it sits below the occupancy you can realistically achieve, the more bad luck the deal can absorb.

Gross yield is revenue divided by the purchase price, which flatters short-term rentals because it ignores their higher costs. Net yield uses income after running costs, so it is the fairer comparison with long-term renting.

It can be, but it involves more work, cost and risk. The extra profit over a long-term lease is effectively your pay for that, so if the gap is small, short-term rental may not be worth it.