Congratulations – you’ve made an excellent investment by purchasing property on the Montenegrin coast! With its booming tourism, low property taxes, and one of the fastest returns on investment compared to other seaside destinations in Europe, Montenegro is becoming a favorite among savvy investors.
But now comes the next decision:
Should you rent your property short-term (e.g. on Airbnb/Booking) or go for a long-term lease?
As a real estate agency deeply rooted in the local market, we help our clients weigh this decision daily. Here’s a clear and practical breakdown to help you decide which rental strategy suits your goals best.
Long-Term Rental: Stability & Simplicity
Main Advantages:
Reliable Income: You get consistent monthly payments without worrying about seasonal fluctuations.
Fewer Responsibilities: Once your tenant moves in, there’s no need for frequent cleaning, guest turnover, or constant communication.
Tenant Pays the Bills: Utilities, internet, and sometimes even building maintenance are covered by the tenant.
Agent Support: Your real estate agent can find and vet tenants, handle contracts, and manage the rental process.
Disadvantages:
Lower Profit Margin: Monthly income is usually lower than short-term rentals, especially during peak season.
Less Flexibility: You can’t use your property spontaneously — most long-term contracts lock you in for 6–12 months or longer.
Short-Term Rental: High Profit, High Involvement
Main Advantages:
Higher Earnings Potential: Especially during the summer season, short-term rentals can generate up to 2x the income of a long-term lease.
Personal Use: Rent out the property when you want and keep it for yourself during your vacation or off-season visits.
Flexibility: You can adjust pricing based on demand, holidays, or local events.
Disadvantages:
Time-Consuming (If Done Alone): You must manage bookings, guest check-ins, cleaning, laundry, restocking supplies, and tourist taxes.
Service Fee (If Done Professionally): Agencies charge 20–30% of your earnings but handle everything for you — from marketing and guest communication to cleaning and maintenance.
Seasonal Dependence: Off-season (November to April) might bring low or no occupancy unless the location is attractive year-round.
Specific Considerations for the Montenegrin Coast
Fast ROI and Low Taxes
Montenegro offers lower property and rental income taxes than many EU countries.
The return on investment (ROI) is faster here than in popular Mediterranean destinations like Croatia, Italy, or Spain.
Tourism Is Booming
Cities like Budva, Kotor, Tivat, and Herceg Novi are thriving tourism hubs.
Demand for short-term rentals during summer often exceeds supply, driving prices up.
Infrastructure & Digital Nomads
With increasing remote workers and expats, cities like Tivat and Bar are seeing a rise in mid-term rentals (1–6 months).
This offers a hybrid model: higher-than-long-term income with fewer turnovers than weekly bookings.
Final Thoughts: What’s Right for You?
Both rental strategies are excellent — it depends on your lifestyle, financial goals, and how hands-on you want to be.
Go Long-Term if you want stability, minimal involvement, and passive income.
Go Short-Term if you’re aiming for higher profits, especially during the summer, and are ready to work with a rental management agency (or do it yourself).
Need Help Deciding?
As a local real estate agency with years of experience on the Montenegrin coast, we don’t just sell you the property — we guide you through the entire investment journey. From market analysis and legal support to rental management and renovation — we’re here to help.
Contact us today to learn more about our tailored rental management services or to find your next investment property in Montenegro.
