Short-Term Rental vs. Long-Term Lease in St. George: Which Makes Sense as an Investor in 2025?

St. George’s growing popularity as a vacation destination, great place to raise a family, and a retirement-friendly city has created exciting opportunities for real estate investors. If you’re thinking about purchasing a property in St. George to rent, one of the first decisions you’ll face is whether to target short-term vacationers or long-term tenants. Each rental strategy has unique considerations that can influence your buying decisions, from location and amenities to layout and property management.

Why Location Matters for Your Rental Strategy

The St. George neighborhood you choose can make or break your rental success. For short-term rentals, proximity to popular attractions like Zion National Park, Snow Canyon State Park, and downtown St. George can increase booking rates and nightly rates. Homes near golf courses, outdoor recreation, or scenic views are also attractive to vacation renters.

On the other hand, long-term leases perform best in established residential neighborhoods with schools, shopping, and convenient commuting options. These areas appeal to families, retirees, and professionals looking for stability.

Check out our post on the pros and cons of long-term versus short-term rentals to help make your decision. 

Prioritizing Features That Appeal to Short-Term Renters

If you decide a short-term rental strategy is best for you, then you need to tailor your house hunting with this in mind. Short-term rental guests often look for homes that feel like a getaway. When buying for a short-term rental, consider properties with:

• Multiple bedrooms and bathrooms to accommodate families or groups.
• Modern kitchens and open living spaces for entertaining.
• Private outdoor spaces, pools, hot tubs, and outdoor kitchens.
• High-speed internet and smart home features for convenience.
• Easy access to attractions, trails, and local dining options.

Properties with these features often generate higher nightly rates and have better occupancy, especially in peak tourism seasons.

Features That Appeal to Long-Term Tenants

For long-term rentals, tenants often prioritize practicality and comfort, and are willing to pay a higher monthly rate for these features. Features to consider include:

• Durable flooring and materials that can withstand daily use.
• Functional layouts with office space for remote work.
• Proximity to schools, grocery stores, and commuting routes.
• Low-maintenance yards and reliable utilities.
• Community amenities like playgrounds or HOA-managed landscaping.

These features help attract tenants willing to sign leases of 12 months or longer, which provides a predictable and consistent rental income.

Other Considerations When Buying a Rental Property

Regardless of your rental strategy, there are several factors buyers should consider before making an offer:

• HOA rules or local zoning regulations that may restrict short-term rentals.
• Insurance requirements, which differ for vacation rentals versus long-term tenants.
• Potential for appreciation in your chosen neighborhood.
• Property management options if you don’t plan to manage the rental yourself.

Our leading St. George real estate expert Erika Rogers says, "Purchasing a rental property in St. George is more than just finding a property in your price range; it’s about finding the right property in the right location for your rental goals. Working with a local real estate agent who understands both short-term and long-term rental markets can help you identify neighborhoods that align with your rental strategy, evaluate homes based on features that drive occupancy and rental income, and navigate local regulations, HOA rules, and insurance requirements."

Whether you’re buying your first rental property or expanding your investment portfolio, understanding the differences between short-term and long-term rentals is essential. By considering location, home features, and your long-term goals, you can make an informed purchase that maximizes rental income and sets you up for success.

Ready to explore potential St. George rental properties? Contact us to get started.