You’ve found an investment property in St. Louis. Now comes the big question: do you rent it to a tenant for a year at a time, or turn it into a short-term rental for visitors? Both can work, but they’re very different businesses. The right choice depends on the property, its location, local rules, and how much time you want to spend on it.
Long-Term Rentals: Steady and Simpler
A long-term rental means one tenant, usually on a 12-month lease.
- Predictable income. You collect the same rent every month, which makes budgeting easier.
- Less day-to-day work. No cleanings between guests, no restocking, and fewer messages.
- Tenants pay some bills. Tenants often pay their own utilities.
- The trade-off: Your rent is set for the year, even if the market rises. A bad tenant or an empty month can hurt, so good screening matters.
Short-Term Rentals: Higher Potential, More Work
A short-term rental hosts guests for a few nights at a time through sites like Airbnb or Vrbo.
- Higher income potential. Nightly rates can add up to more than monthly rent, especially near popular spots.
- Flexibility. You can block off dates to use the place yourself.
- The trade-off: It’s a hospitality business. You handle cleanings, supplies, guest questions, reviews, and furniture. Income rises and falls with the seasons and local events, and you pay the utilities.
What Drives Short-Term Demand in St. Louis
Visitors come here for Cardinals games, concerts, Forest Park, festivals, weddings, and conventions. Homes close to these draws, in walkable neighborhoods with easy parking, tend to book best. A house far from attractions may do better as a long-term rental.
Don’t Forget the Middle Option
Some owners rent furnished for one to six months to traveling nurses, people relocating for work, and families between homes. St. Louis has major hospitals and employers that bring in workers like these. Mid-term rentals often mean fewer turnovers than nightly stays and higher rent than an unfurnished lease. Local rules may treat them differently from short-term rentals, so check before you plan around it.
Check the Rules First
This step can decide the whole question. The City of St. Louis requires a permit to run a short-term rental and limits how many one owner can operate. In St. Louis County, each city sets its own rules. Some towns allow whole-home short-term rentals with a permit and inspection, while others only allow renting rooms in a home the owner lives in. Jefferson County towns can have their own rules too. Lodging taxes may also apply, and HOAs and condo associations often have their own rental limits. Always confirm the rules for the specific address before you buy.
Run Both Sets of Numbers
Before deciding, estimate both:
- Long-term: Monthly rent from similar homes nearby, minus the mortgage, taxes, insurance, repairs, and a cushion for an empty month.
- Short-term: A realistic nightly rate times the nights you expect to book across a full year, including slow months. Then subtract cleaning, supplies, utilities, furniture, platform fees, lodging taxes, and repairs.
If the short-term numbers only beat long-term in your best months, the steadier choice may be the smarter one.
The Bottom Line
Long-term rentals trade some income for simplicity. Short-term rentals can earn more but take real work and must follow local rules. Many investors start with a long-term tenant and try other options once they know the property and the market.
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