Airbnb vs Long-Term Rental: A Real Numbers Comparison for Estonian Landlords

Every Estonian landlord faces the same fundamental question at some point: should I let this property short-term or long-term?

The honest answer is that it depends — on the property, the location, your management capacity, and what you actually want from the investment. What it should never depend on is a rough guess. Here is a real numbers comparison for a typical Estonian rental property.

The Scenario

A well-located one-bedroom apartment in central Tallinn. Purchase price €120,000. Located within walking distance of the Old Town. This is a realistic and common investment property in the Estonian market.

Long-Term Rental: The Numbers

Rental income: a well-presented one-bedroom in this location lets for approximately €700 per month. Annual gross income: €8,400.

Annual deductions:

• Management fee (10%): €840

• Maintenance and repairs (1% of value): €1,200

• Insurance: €250

• Land tax and HOA fee: €600

• Vacancy allowance (one month): €700

Annual net income: approximately €4,810. Net yield: approximately 4.0% on a €120,000 purchase price.

Short-Term Rental: The Numbers

Average nightly rate for a well-presented one-bedroom in central Tallinn: €80. Annual occupancy at 75% average: 274 nights. Gross rental income: €21,920.

Annual deductions:

• Airbnb platform fee (3%): €658

• Cleaning costs (€35 per turnover x 100 stays): €3,500

• Property management (20%): €4,384

• Furnishing amortisation (€5,000 over 5 years): €1,000

• Maintenance (2% of value): €2,400

• Short-term insurance: €350

• Land tax, HOA, utilities: €1,500

Annual net income: approximately €8,128. Net yield: approximately 6.8% on a €120,000 purchase price.

The Honest Trade-Off

The short-term rental generates roughly 69% more net income in this scenario. That premium is real — but so is the work required to earn it. Short-term rental requires either active hands-on management or paying a professional manager.

Long-term rental produces lower income but requires far less active involvement. For investors who want passive income from an Estonian property without dedicating time to its management, long-term letting is often the more practical choice.

Which Works for Your Property?

The short-term premium shrinks significantly outside prime Tallinn locations. For properties in Tartu, regional cities, or non-tourist areas of Tallinn, the income gap narrows while the management demands remain the same.

Our Airbnb investments page covers the short-term rental market across Estonia in more detail. Browse our property listings to see what is available, and use our mortgage calculator to model the numbers against your financing. Get in touch with the Bryan Estates team for a specific income projection for a property you are considering.