Short-term or long-term rental?
Compare the yield and monthly cash flow of renting your apartment on a yearly lease versus to short-stay guests.
A personal tool, not professional advice. These are calculation tables I built for my own decisions and now share freely. Please check every figure and assumption yourself before relying on it.
The apartment
Lawyer, agent, renovation
Applies to both strategies
Financing
₪1,250,000
Long-term lease
Weeks per year without a tenant
% of rent, if you use a manager
Anything you pay, e.g. vaad bayit
Short-term rental
% of nights booked over the year
Airbnb / Booking, % of revenue
% of revenue for full-service management
Arnona, electricity, water, internet
One-time, added to the investment
Higher net income
Short-term
| Per year | Long-term | Short-term |
|---|---|---|
| Revenue | ₪80,769 | ₪201,663 |
| Operating costs | -₪6,000 | -₪107,153 |
| Net operating income | ₪74,769 | ₪94,510 |
| Total investment | ₪2,760,000 | ₪2,820,000 |
| Gross yield | 2.93% | 7.15% |
| Net yield | 2.71% | 3.35% |
| Mortgage payments | -₪86,817 | -₪86,817 |
| Cash flow per month | -₪1,004 | ₪641 |
| Cash-on-cash return | -0.8% | 0.49% |
Short-term rental only works with tight operations. Reztate manages 60+ apartments in Jerusalem and Tel Aviv. We can estimate real revenue for your apartment.
See our property managementThese calculators are spreadsheets I originally made for my own use, shared as they are to help you think things through. They give estimates based on the published rates for the current tax year and on the assumptions you enter, and they may contain errors or simplifications. They are not tax, legal or financial advice: check all the information yourself and with a licensed accountant, lawyer or mortgage adviser before making any decision.
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