Croatia Market Guide: Should You Switch to Short-Term Rentals?
Short answer: switching to short-term rentals in Croatia can increase income — but only for certain properties and only when pricing, seasonality, and operations are handled correctly.
For many owners, short-term rentals earn more than long-term leases during peak season, but underperform or become stressful without professional management. This guide explains what most Croatian property owners actually earn, when short-term rentals make sense, and when staying long-term is the better decision.
Who This Guide Is For
This guide is for homeowners in Croatia who are deciding between long-term and short-term rentals and want clear financial tradeoffs — not hype or guarantees.
What Most Property Owners Earn From Long-Term Rentals In Croatia
Long-term rental income in Croatia varies by region, but most owners earn between €8 and €12 per square meter per month. For example, a 60m²–80m² apartment in Medulin or Pula, located in Istria, often translates to €700–€1,000 per month. It’s stable and predictable — but it also means your income doesn’t increase during high-demand seasons, and your rates are locked in regardless of market shifts.
While long-term leases offer predictability, they also come with tradeoffs. Rent is typically fixed for 12 months or more, meaning you miss out on peak season demand — especially in coastal regions where nightly rates can triple in summer. And while tenant turnover is low, so is flexibility: if you want to sell, renovate, or switch strategies, long-term tenants can slow you down.
The key limitation of long-term rentals in Croatia is that income remains fixed year-round, even when short-term demand and nightly rates spike dramatically in summer.
The Short-Term Rental Income Potential in 2025
What a 2BR in Medulin Can Earn
For the same 2-bedroom apartment in Medulin, short-term rental income can reach €110–€160 per night during peak season (June to September), with shoulder months averaging €60–€90. Even accounting for off-season dips, properties with strong photos, professional management, and consistent reviews can earn €12,000–€18,000 annually — often 2–3× what a long-term lease would generate. Results vary significantly by location, property condition, and management quality.
Seasonal Pricing Patterns
Of course, short-term income isn’t distributed evenly throughout the year. The summer months — particularly July and August — can account for 40–50% of total annual revenue, while November through February are typically slower. That’s why smart pricing, shoulder-season positioning, and even mid-term stays (like digital nomads or travel nurses) can make a major difference in smoothing out earnings.
Mid-Term Stays in the Off-Season
While tourist traffic slows in winter, mid-term guests can help fill the gap. Remote workers, digital nomads, medical staff, and families relocating temporarily often look for furnished stays between 1–3 months — especially in shoulder season or winter months. Offering discounted monthly rates and flexible terms can keep occupancy strong, even outside of peak travel periods.
When Short-Term Rentals Do Not Make Sense In Croatia
Even your personal goals matter. If you value hands-off income with zero guest interaction, or if you're emotionally attached to your home and uncomfortable with frequent turnover, short-term may not be the right fit — even if the numbers look better. We’ve worked with owners who choose long-term simply because it aligns better with their lifestyle or peace of mind. And that’s okay — your rental strategy should work for you, not the other way around.
Why Professional Management Often Determines Short-Term Rental Success
Dynamic Pricing = More Than Just Higher Rates
In Croatia’s highly seasonal markets, pricing strategy — not just nightly rates — largely determines annual short-term rental income. The best-performing listings adjust rates daily based on demand, seasonality, local events, and booking windows. Underpricing means leaving money on the table; overpricing leads to empty nights. Most owners don’t have the time or tools to manage this manually — which is why automation, paired with expert oversight, is a serious revenue lever.
24/7 Guest Support Is Now the Expectation
Today’s guests expect quick responses, no matter the hour. Whether it’s a midnight check-in issue or a simple Wi-Fi question, response time directly affects your reviews — and your visibility on platforms like Airbnb. Managing guest messages yourself can quickly become a full-time job. The highest-rated properties offer seamless communication with zero friction, and that only happens with a team or system behind the scenes.
Cleaning Coordination Impacts Your Reviews
Cleanliness is one of the top drivers of guest satisfaction — and complaints. One missed detail or late turnover can tank your 5-star average. Coordinating cleaners, quality-checking each stay, and restocking essentials takes more than a checklist — it takes accountability. Professional setups have systems in place to make sure every stay meets expectations. Guests notice the difference, and so does your bottom line.
Bottom Line
Short-term rentals in Croatia can outperform long-term leases for well-located properties with strong summer demand — but only when pricing, guest communication, and operations are handled consistently. For other properties, or for owners seeking minimal involvement, long-term renting may be the better choice.
Want to Know What Your Property Could Earn?
Whether you're renting long-term or just starting to explore short-term options, the smartest first step is to get clear on your numbers. We’ll show you exactly what your home could earn on platforms like Airbnb and Booking.com — with no pressure, no hard sell, and no guesswork. Just a clean, data-backed income estimate built around your property, your location, and your goals.