Short-Term vs. Long-Term Rentals: What Memphis Landlords Need to Know

By Michelle | July 2, 2025
Memphis landlord reviewing short-term and long-term rental options

Short-Term vs. Long-Term Rentals What Memphis Landlords Need to Know

Thinking of renting out your Memphis property?
One of the biggest decisions you’ll make is whether to offer it as a short-term or long-term rental. Both paths have their advantages—but also come with challenges many landlords don’t expect.

From maintenance demands to tenant turnover and legal requirements, the type of lease you choose will shape your experience as a landlord.

So, how do you know which strategy is right for your property?

Here’s what every Memphis landlord needs to know before listing their home—and how Foundation Property Management helps you make the best call.

Understanding the Basics: Short-Term vs. Long-Term Rentals

Let’s break it down:

  • Short-term rentals typically involve leases less than 30 days. These include vacation rentals or corporate housing.

  • Long-term rentals are usually leased for six months or longer, with the most common lease being 12 months.

Each type attracts a different kind of tenant and has its own expectations when it comes to management, maintenance, and profitability.

What to Expect with Short-Term Rentals in Memphis

Short-term rentals have gained popularity in recent years, but they require serious time and effort. Here are the facts:

Pros:

  • Higher nightly rates

  • Flexibility to use the property between bookings

  • Popular in tourist-heavy areas

Cons:

  • High turnover = more cleaning and repairs

  • Constant need for guest communication

  • Legal gray areas depending on Memphis city ordinances

Also, local regulations are becoming more strict. Some neighborhoods limit short-term rentals, require permits, or even prohibit them entirely.

Ask yourself:
Do you have the time or team to manage frequent check-ins, deep cleans, and guest issues at all hours?

Why Long-Term Rentals Are Often the Smarter Choice

Long-term rentals are ideal for property owners looking for steady income with fewer headaches. Here’s why:

Benefits of long-term leasing:

  1. Reliable monthly income

  2. Lower maintenance costs due to less turnover

  3. More stable relationships with residents

  4. Easier compliance with Memphis housing laws

  5. Saves you time—especially when using professional property management services

At FoundationPM, we specialize in residential property management designed for long-term success. We place residents who treat our homes as if they were their own—because to them, they are home.

What About Memphis Rental Laws?

One big factor in this decision is legal compliance. Memphis has specific rules about both types of rentals. For example:

  • Short-term rentals often require extra permits and may be banned in certain neighborhoods.

  • Long-term rentals must follow detailed state laws regarding security deposits, notice periods, lease renewals, and repairs.

Staying compliant is easier with a property management company that knows the ins and outs of property management Memphis Tennessee laws. That’s where FoundationPM comes in.

Common Mistakes to Avoid (Whether Short-Term or Long-Term)

Here are five mistakes landlords make—no matter the lease type:

  1. Skipping the screening process

    • Even for short stays, vetting matters. A bad guest can do major damage.

  2. Not setting clear rules in writing

    • Your lease or rental agreement should cover all expectations.

  3. Underestimating maintenance needs

    • Properties, especially short-term ones, wear down faster than you think.

  4. Failing to understand local laws

    • Don’t risk fines or court dates. Stay informed—or work with someone who is.

  5. Trying to manage everything alone

    • Without help, burnout is real.

FoundationPM’s Take: What Strategy Works Best in Memphis?

At Foundation Property Management, we’ve helped countless landlords choose the right rental model based on their goals, neighborhood, and property type. For most, long-term rentals deliver better ROI with less risk.

Here’s what our property management services can do for your long-term rental:

  • Handle advertising and leasing

  • Screen qualified residents

  • Ensure lease agreements follow all legal standards

  • Manage maintenance and inspections

  • Collect rent and handle accounting

  • Provide legal protection and compliance

Ready for Stability and Simplicity?

Managing short-term rentals often feels like running a hospitality business—because it is. But when your goal is steady income and a property that’s treated with care, long-term renting through residential property management is the way to go.

That’s what we do best.

Want Help Choosing the Right Rental Strategy?

Whether you’re unsure if your Memphis property is better suited for short-term or long-term renting, FoundationPM is here to guide you. Our team will walk you through the risks, laws, and opportunities—so you can feel confident in your next move.

Call us today at 901-633-1984 to get expert guidance from a trusted property management company in Memphis.

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