Why More Short-Term Rental Hosts Are Turning Into Landlords

Short-Term Rentals Aren’t What They Used to Be

Over the past few years, the world of short-term rentals has changed dramatically. Where once property owners could count on swift bookings and solid profits from platforms like Airbnb, the reality in 2025 is far trickier. A growing number of hosts—from the busy neighborhoods of Denver to small Colorado foothills communities—are swapping short-term hustle for the steadier ground of longer leases. What’s fueling this exodus? Let’s take a look at the mix of local rules, economic pressures, and personal burnout reshaping this part of the market.

Here in the Denver metro and Foothills region, these shifts aren’t just headlines—they’re conversations you’ll overhear at local coffee shops or among neighbors pondering their next steps with family properties. Denver, for example, has always welcomed guests from around the globe, but lately, more owners are considering longer commitments and more peace of mind. It’s a conversation that’s as local as it gets.

Heavier Rules Mean Tough Choices for Hosts

The fine print keeps getting longer. Cities and towns, big and small, have rolled out a wave of regulations in recent years. Caps on permits, strict licensing rules, and ever-mounting fees force hosts to choose: jump through each new hoop or step away from nightly stays. It’s rarely clear-cut; some places hand out one-size-fits-all fines, while others leave hosts guessing when enforcement might actually strike.

Small Town Clampdowns

In smaller communities, the pushback can come quickly. Tight-knit towns see rental homes driving up prices, making it harder for locals to find housing and changing the rhythm of daily life. Communities like Alamosa, Colorado, have limited short-term rentals to just 5% of local homes per zone. With only 43 listings allowed citywide, a crowded waitlist, and new hosts facing hefty fees, running these rentals just isn’t as enticing as it was even a couple years ago.

Tybee Island, Georgia, took it even further, barring new vacation rentals under a month long from 85% of the island’s residential neighborhoods. As a result, many owners swapped out frequent turnovers for more stable mid-term or annual tenants just to keep their investments afloat.

In Coeur d’Alene, Idaho, things have taken on a neighborly twist—residents are now encouraged to report suspected illegal rentals via a city-run “snitch line.” The result? Rising tension and even more hosts re-evaluating whether short-term is really worth the local drama.

Major Metro Restrictions

The rules aren’t much kinder in larger cities. New York City’s Local Law 18 hit hard, requiring hosts to register, stay home during guest visits, and restrict stays to two guests. Renting out entire units for under a month? That’s now illegal. Since this started, the city has seen an 80% drop in Airbnb listings—no surprise given the scope of these new rules.

San Francisco enforces its own version: hosts must live on site nearly year-round and unhosted rentals are limited to 90 nights. With $484-a-day penalties hanging over violators, it’s a risk most owners don’t want to take. On top of that comes registration costs and pricey insurance requirements—sometimes adding up to thousands yearly.

All these overheads, mixed with the bite that booking sites take out of each reservation, have many former hosts asking, “Is this still worth it?”

Denver, too, tightened the screws. Only owner-occupied homes are eligible for short-term renting within the city. Hosts face licensing fees, a mandatory display of permit numbers, and the ever-looming threat of fines that can quickly eat into what little profit remains.

Money Matters: Economic Pressures Add Up

Local laws are just one piece of the puzzle. Skyrocketing expenses—especially for cleaning, maintenance, and insurance—are pushing budgets to the brink. Within the past year, cleaning costs jumped nearly 6%. Mortgage rates are still locked above 6%, and insurance rates only seem to climb.

Meanwhile, booking demand is down. Markets that used to practically guarantee full calendars now look a bit emptier. Oversaturation is a problem, especially in tourist hot spots, and shorter stays no longer translate directly into higher earnings. With international travel numbers lagging, especially from Canada where bookings on Airbnb fell by over 12% this year, nightly rates are sliding just to stay competitive.

For owners who once relied on this income, these headwinds feel impossible to ignore. Many are looking at their profit-and-loss sheets and realizing something has to give.

The Strain of Constant Turnovers

Most hosts don’t talk about the relentless grind behind those “easy” short-term profits. After a while, the midnight phone calls, surprise cancellations, out-of-season gaps, and non-stop cleaning can burn out even the most enthusiastic owner.

Short-term renting creates an endless loop of guest communication, scheduling, and logistical tasks. The need to account for every little purchase and cleaning task adds up quickly—not just in out-of-pocket expenses, but in time and energy. For folks who just wanted to earn a bit of passive income, this often feels like more of a round-the-clock job than they bargained for.

Why Mid-Term Rentals Are Getting a Second Look

Switching gears from nightly to mid-term rentals doesn’t have to mean a full overhaul. With the right setup, a furnished space is already 90% ready for guests like travel nurses, contractors, or families between homes—people who treat a rental more like their own place than a hotel stopover.

Less turnover means reduced wear, fewer cleanings, and fewer surprise headaches.
Owners gain more control by screening tenants before they move in.
The flexibility of leases lasting one to six months fits a variety of lifestyles—without locking in for a year or scrambling for nightly guests.

As one savvy real estate duo puts it, the mid-term model is the “just right” option for many—peaceful in pace, practical in returns.

When Long-Term Makes the Most Sense

Some hosts get to the point where short-term stress just isn’t worth the hassle anymore. Longer leases mean hands-off management, fewer interruptions, and an income stream that’s easier to predict. Like mid-term renting, it also lets owners screen tenants—avoiding the unknowns that often come with one-night stays.

Financially, it may not have the “sky’s the limit” earning power of high-season short-term rates, but it brings a new level of stability. Administrative and tax challenges get simpler, too. No more frequent spreadsheets, chasing receipts, and worrying whether a missing invoice might trigger IRS scrutiny.

For owners who want predictable returns and more breathing room, stepping into the landlord role feels like a smart reset.

Is the Short-Term Rental Game Over?

Not at all—but the playbook is changing. From Colorado mountain towns to major metros, new restrictions are popping up every month. Even if your local market is healthy now, it only takes a single city council vote or state proposal to shift the rules overnight—and upend your business model.

If you’re feeling worn out by regulations, unpredictable demand, or the sheer effort of frequent turnovers, it might be time to explore a different approach. Mid- and long-term rentals still offer plenty of opportunity—they just trade volatility for steadier, more manageable growth.

Property Management Tools Smooth the Transition

Moving from short-term to longer leases means rethinking your management approach, too. While booking sites like Airbnb work well for daily turnovers, managing tenant screenings, lease agreements, and payments calls for more specialized software.

Advertise your property across multiple sites
Digitally collect applications and screen tenants
Automate rent collection and track important documents

Approaching this transition with the right tools isn’t just smart—it’s essential for anyone who wants to make the move from constant guest handoffs to a streamlined, locally-responsible rental business.

The bottom line? The rental world is evolving. And for many local property owners, exploring the benefits of mid- or long-term leasing is a welcome next chapter.