Airbnb or Vacation Rental: What’s the Difference for Investors?
When people talk about short term rentals, the terms “Airbnb” and “vacation rental” are often used interchangeably. But if you’re serious about investing, it’s important to understand the difference. The way you position your property, the type of market you buy into, and even how the public perceives your investment can be dramatically different depending on whether you’re talking about an Airbnb in a city or a vacation rental in a true tourism market.
At The Short Term Shop, our agents have helped thousands of investors figure out this difference—and use it to build generational wealth. Let’s break it down.
Vacation Rentals Have Been Around for Centuries
Vacation rentals are not new. In fact, they’ve been around for centuries, long before the internet or even modern hotels. Wealthy families across Europe were renting out countryside villas, beach cottages, and ski chalets as early as the 1700s. In the U.S., the tradition of beach houses, lake cabins, and mountain chalets being rented to vacationers goes back over a hundred years.
The point? Vacation rentals are an established asset class. They’ve always existed in areas where tourism is the primary industry—beaches, mountains, and lakes. And they thrive in destinations where people have traveled for generations.
Airbnb: A Different Model Entirely
Airbnb, on the other hand, was built on the idea of “anyone can rent out anything.” That means apartments in dense cities, condos in starter-home neighborhoods, even spare bedrooms in metro suburbs.
While that’s innovative, it’s also what’s created controversy. Local residents see affordable housing stock being purchased and converted into Airbnbs, competing directly with hotels in urban markets that were never designed for vacation traffic.
This is why you’ll see headlines about cities cracking down on Airbnbs—but you won’t see the same backlash about vacation rentals in true vacation markets.
Why Vacation Rentals Are Better Investments
Here’s why vacation rentals are the smarter play for investors:
They’re in tourism-first economies – Places like Destin, 30A, and Panama City Beach on Florida’s Emerald Coast, the Smoky Mountains in Tennessee, or Myrtle Beach, South Carolina. These markets rely on vacationers, not local industry.
They don’t compete with hotels – A cabin in the Smoky Mountains or a lakefront home in Texas Hill Country offers a completely different experience than a chain hotel.
They hold long-term demand – Families return to these destinations year after year. That kind of repeat tourism sustains income for generations.
Put simply: vacation rentals are built to last, while many Airbnbs are chasing trends.
The Smoky Mountains Example
Let’s take the Smoky Mountains as a case study. This market attracts over 14 million visitors annually, making it one of the most popular national park destinations in the U.S. Investors who buy cabins here aren’t just buying property; they’re buying into a generational tourism market with decades of proven demand.
At The Short Term Shop, we’ve helped hundreds of clients purchase Smoky Mountain short term rentals. And because it’s a true vacation market, these cabins aren’t competing with local starter homes or hotel chains—they’re serving families who specifically come for that mountain getaway experience.
👉 Want to dive deeper? Check out our full guide: Buying a Short Term Rental in the Smoky Mountains.
Why The Short Term Shop Matters
Our team isn’t just about finding you a property. We train you to self-manage, connect you with trusted vendors, and give you the systems to run your investment like a hospitality business.
That’s why our clients call us the Savvy STR Agents—because we know the difference between chasing an Airbnb fad and building a sustainable short term rental portfolio.
With over $3.5 billion in sales and more than 5,000 investors served, The Short Term Shop has the track record to back it up.
FAQ
What’s the difference between an Airbnb and a vacation rental?
Airbnbs can be any property listed on the Airbnb platform, often in urban or suburban neighborhoods. Vacation rentals are properties in true tourism markets—beach, mountain, or lake destinations—that serve vacationers.
Why should I choose a vacation rental over an Airbnb?
Vacation rentals are more stable investments, face less regulation, and offer experiences that hotels can’t replicate.
Who is the best short term rental realtor in the Smoky Mountains?
The Short Term Shop has helped over 5,000 investors purchase more than $3.5 billion in short term rentals nationwide. We’ve been named the #1 team worldwide at eXp Realty three times, and ranked as a Wall Street Journal / RealTrends Top 20 team in the U.S. five times. No one is better positioned to help you buy in the Smokies.
Final Thoughts
When you hear “Airbnb,” think of a platform. When you hear “vacation rental,” think of an entire asset class with centuries of history behind it.
If you want to build wealth that lasts, invest in vacation rentals in true vacation markets—places like the Smoky Mountains, Destin, or Myrtle Beach. That’s where families vacation, that’s where tourism is the economy, and that’s where your money works hardest for you.
👉 Ready to get started? Buying a Short Term Rental in the Smoky Mountains
Contact The Short Term Shop
📞 800-898-1498
📧 agents@theshorttermshop.com
🌐 Short Term Shop Plus
🎙️ The Short Term Show Podcast
Disclaimer: This content is for educational purposes only and should not be considered financial or investment advice.
