Attention Landlords: Read Before You Airbnb

Amid the hype and wall‑to‑wall coverage of short‑term lets, Albania has quietly gone big: AirDNA counts about 21,000 holiday homes in 2024, grossing roughly €85 million – around 4× 2021. Every new listing also trims the pool for long‑term tenants, nudging conventional rents higher.

Keen to discover which path actually rewards landlords, we analysed 2,623 live listings across six cities, benchmarking short‑lets at 60 % annual occupancy and long‑lets at 90 % to reflect normal voids. The punchline: at realistic occupancies, long‑lets beat short‑lets across the board, Vlorë −75–85%; Korçë has the least gap.

STR in Vlorë −75–85% Loss V LTR

Under these assumptions, every segment favours a conventional tenancy on both monthly income and yield. Korçë two‑beds show the least disparity (about 10 % lower on income; roughly 1.0 pp behind on yield). On the coast, the split is stark: in Vlorë, short‑let medians are €485–€558 versus €1 942–€3 710 for long‑lets.

LTR Yield +14.7 pp (max)

‘Yield gap’ = long‑let gross yield minus short‑let gross yield. Under our assumptions, every segment favours a long‑let; the gap peaks at +14.7 pp (Vlorë 2‑beds). Korçë 2‑beds show the least disparity—about 10 % lower on income and ~1.0 pp on yield. On the coast, the split is stark: in Vlorë, short‑let medians are €485–€558 against €1 942–€3 710 for long‑lets (≈75–85 % lower).

Break‑even – Korçë 2‑bed ≈60%; most >100%

To match a long‑let on median monthly income, only Korçë 2‑beds look realistically viable at about 60 % occupancy. A small cluster is demanding but conceivable –Sarandë 1‑beds ~82 %, Shkodër 1‑beds ~90 %, Tiranë 1‑beds ~94 %, Tiranë 3‑beds ~97 %.

Most others would need more than a full calendar: Korçë 1‑beds ~101 %, Shkodër 2‑beds ~101 %, Sarandë 2‑beds ~102 %, Durrës 1‑beds ~102 %; and several are plainly impossible: Tiranë 2‑beds ~120 %, Durrës 2‑beds ~143 %, Durrës 3‑beds ~147 %, Vlorë 1‑beds ~216 %, Vlorë 2‑beds ~359 %.

This pattern reflects city stability versus coastal seasonality: Tirana and other urban markets book more evenly across the year, while seaside towns fill up in July–August but endure long shoulder months—so their annual break‑even thresholds look unrealistically high.

Interestingly, the sample skews small: 83 % one‑beds, 17 % two‑beds, and three‑beds barely register.

Prices – ADR €38→€81; RevPAR €49 vs €82 (Corfu)

Summer prices rocket: ADR jumps from €38 in January to €81 in August. Even at the peak, Albania undercuts Greece-peak RevPAR €49 versus €82 in Corfu. Guests book late: median lead‑time 17 days nationwide, just 9 days in Korçë. Professionalisation is creeping in: 46 % of listings are held by hosts with ≥3 units (31 % in 2021). A €15 cleaning fee can swallow ~40 % of a January nightly rate in Durres.

Very Low ~35–45 % Annual Occupancy Rates

• Occupancy reality vs model. AirDNA shows most Albanian cities run ~35–45 % annual occupancy; we modelled STR at 60 % (deliberately generous). Malta’s main markets sit higher at ~55–60 % annually, with 80–85 % in peak months.
• Seasonality & ADR drag. ADR jumps €38 → €81 from January to August, but winter/shoulder months pull annual revenue down—whereas an LTR pays a steady monthly rent.
• Supply surge. Listings have roughly quadrupled since 2021, diluting demand per unit and softening both rates and fill.
• Cost stack. Licensing/registration, the €1 tourist tax, 8 % VAT, platform fees and changeover costs slice into gross costs LTRs largely avoid.
• Stock skew & competition. 83 % of STRs are one‑beds (the most crowded category), pushing prices down; two‑beds are scarcer in the LTR pool, supporting higher long-term rents.
• Crowding‑out effect. Diverting flats to STRs tightens the long‑let market, lifting conventional rents and widening the LTR yield edge.

Why Some Still Choose STRs – Flexibility & Cash‑Flow

• Flexibility: keep weeks for personal use.
• Pricing agility: adjust rates quickly.
• Cash‑flow timing: strong summers can pre‑pay annual costs.
• Operational edge: multi‑unit hosts gain from dynamic pricing, cleaning scale and add‑ons.
• Option value: easier to sell vacant or pivot strategy.
• Niche fit: unique homes and 30–90‑day mid‑term stays can work.

Fast Facts (AirDNA 2024–25)

Bottom Line – Go Long

Unless you’ve cornered the Korçë two‑bed niche—or can conjure 75 %+ occupancy year‑round without burning out your cleaner—a plain‑vanilla tenancy still delivers the steadiest pay cheque. You dodge guest churn, licence admin and low‑season gloom, yet bank yields that beat Airbnb in nearly every city.

Paradoxically, the Airbnb boom itself is your ally: each new host thins the long‑let pool, nudging conventional rents higher. So while tourists gorge on cheap lake‑view studios, you can sip your macchiato, content that a boring twelve‑month lease may be the real holiday for your wallet. And with all the hype around short‑term letting and widely touted high returns, this data suggests that a bird in the hand is better than two in the tree.

Sources d'information

All data from AirDNA MarketMinder (2024–25) unless noted: national dashboard (Supply, Occupancy, ADR, RevPAR, Fees, Host Ownership); city dashboards (Tirana, Durrës, Vlorë, Sarandë, Shkodër, Korçë); Compare Markets (Corfu vs Albania). Figures retrieved August 2025.