Fabian's decision - two apartments, many possibilities
Short-term rental vs long-term rental: Fabian is 38, lives in Linz and owns two condominiums - one in Vienna's Leopoldstadt district and the other in Salzburg's Neustadt district. Both apartments had been rented out solidly for years. But now the tenancy agreements have been terminated. Fabian is faced with a question that concerns many owners:
Kurzzeitvermietung vs Long-term rental – welche Strategie ist 2026 die bessere, um eine Wohnung zu vermieten?
In this article, we accompany Fabian in his decision-making process - between return on investment, costs, legal situation and capacity utilization.
Definition of terms: What is legally what?
Fabian finds out: What does "Short-term rental" - and what is the difference to the classic long-term rental?
According to the Tenancy Act (MRG) long-term rentals are regular principal tenancies that are highly protected and regulated.
The Short-term rental on the other hand - if additional services are offered - falls legally under accommodation and not subject to the MRG. This allows more freedom, but also less protection.
Further information: BMWET for short-term rental
Utilization: constant rent or seasonal risk?
In Salzburg, Fabian is considering using the apartment for tourism. But how stable is it really?
Long-term rental
- Continuous letting with good tenant selection
- Hardly any vacancies
- Little contact with tenants
Short-term rental
- Good capacity utilization in the high season
- Idle time in low season or with negative ratings
- Ongoing communication necessary
Checklist: Utilization
| Criterion | Long-term | Short term |
| Occupancy | 90-100 % stable | Highly seasonal |
| Change of tenant | Rare | Weekly / daily possible |
| Plannability | High | Low |
Yield: higher profit or secure income?
Fabian does the math: His Vienna apartment could fetch €130/night as an Airbnb property - or €2,600 for 20 nights. Sounds good. But what's the net result?
Long-term rental
- Predictable, regular rental income
- Operating costs transferable
- Lower risk
Short-term rental
- Potentially more revenue per month
- Higher expenses: Cleaning, furnishings, platform fees
- Complex bookkeeping (VAT, local tax)
Checklist: Income & expenses
| Category | Long-term | Short term |
| Net income | Stable | Variable |
| Incidental costs | Mostly charged on except maintenance reserve | Included in the rental price |
| Accounting | Simple | Complex |
Effort: a sure-fire success or a full-time job?
Fabian has a busy job. Short-term rental sounds lucrative - but can he manage it on his own?
Long-term rental
- One-off expense at the start of letting
- Hardly any ongoing support required
Short-term rental
- Cleaning, check-in, key handover, guest communication
- 24/7 availability necessary
Checklist: Effort in everyday life
| Task | Long-term | Short term |
| Handing over the keys | Unique | Frequent to daily |
| Cleaning | Rare | After each booking |
| Taxation | Manageable | VAT, local tax, platform fee. |
Here you will find information All about the management of your long-term rented condominium: Blog articles on Subadministration and Sub-management by Kroy Immobilien.
Legal situation in Vienna & Salzburg
Fabian researches what applies in his cities - and is surprised at how strict the rules are.
Vienna
- Up to 90 days/year permit-free
- From 91 days: Exemption permit (§129a BO)
- Co-owner consent required
- Penalties: up to €50,000
More info There is also the City of Vienna
Salzburg
- Short-term rentals mostly subject to approval (§31b ROG)
- Only old stock (before 2018) & private rooms in main residence excluded
- Penalties: up to 25,000 €
More info can be found here at the City of Salzburg
Key takeaways - short-term rental vs long-term rental
1. utilization:
Long-term rentals offer stable occupancy and reliable income. Short-term rentals are seasonally attractive, but fluctuate and are difficult to plan.
2nd return:
Short-term models can yield more gross, but only with high capacity utilization and professional organization. Long-term models deliver a solid net return with low risk.
3rd effort:
Short-term rentals are administration-intensive - cleaning, guest communication, handing over keys. Long-term rentals are almost passive, especially with a good choice of tenants.
4. legal matters:
In Vienna & Salzburg, short-term rentals are strictly regulated. In some cases, permits are required, the consent of co-owners is required or old regulations apply. Penalties of up to €50,000 possible.
5. strategy:
If you have little time or live away from home, long-term letting is better advised. Short-term rentals are only worthwhile if the legal situation is clear, the location is good and the management is reliable - ideally with external sub-management.
6. tax:
Short-term rentals involve higher tax costs (VAT, local tax, platform fees). Long-term rentals are easier to declare.
Fabian's conclusion: Which solution fits?
After all these considerations, it is clear to Fabian:
- In Vienna he decides in favor of Long-term rental and has the apartment sub-managed - stable, permit-free and without administrative stress.
- In Salzburg he checks a Short-term rentalif approvable.
Get clarity now - with Kroy Immobilien
Whether long-term or short-term letting: we help you find the best strategy for your apartment - legally compliant, profitable and with the right service.
Our tip: Use our Subadministration or let us take you to the optimal marketing advice - especially for Vienna and Salzburg.
Arrange your non-binding consultation now: Contact us
FAQs - Short-term rental vs long-term rental
What is short-term rental according to the law?
Accommodation, not subject to MRG - subject to tourist rules.
What permit do I need in Vienna?
Up to 90 days/year none, beyond that an exemption permit is required.
How high are the penalties for violations?
Vienna: up to €50,000, Salzburg: up to €25,000.
How does the tax differ?
Short-term: VAT, local tax; long-term: income from letting & leasing.
