The headline: short-let usually earns 1.8–2.5× long-term
For a typical 2-bedroom apartment in central Vilamoura, long-term rental brings in roughly €14,400–€18,000/year (€1,200–€1,500/month). Short-let, run properly, brings in €28,000–€45,000/year on the same property. That's the pitch.
The catch: costs and effort scale too
Short-let comes with real costs long-term doesn't: cleaning between stays (€60–€120/turn), higher wear on furniture and linen, higher utility bills, channel commissions (Airbnb/Booking take 3–15%), AL compliance, and someone answering guest messages at 11pm.
Realistic net comparison — 2-bed Vilamoura apartment
| Long-term | Short-let | |
|---|---|---|
| Gross income | €16,800 | €36,000 |
| Management (10–20%) | −€0 | −€7,200 |
| Channel fees | — | −€1,800 |
| Cleaning | — | −€4,800 |
| Utilities | tenant pays | −€2,400 |
| Wear / linen / consumables | — | −€1,800 |
| Net to owner | ≈ €16,800 | ≈ €18,000 |
That's a poorly-run short-let. A well-optimised one on the same 2-bed hits €45k+ gross, and the same fixed costs push the net gap to €10–15k in short-let's favour.
When long-term wins
- Property is inland or in a low-tourism sub-area
- You want zero operational involvement and don't want a manager
- You need predictable income for a mortgage stress test
- Local AL contention rules block new registrations
When short-let wins clearly
- Central Vilamoura, Marina, Old Village, Falésia
- 3+ bedrooms with pool (private villa premium is big)
- Beach-adjacent or sea view
- You want to use the property yourself part of the year