Should You Switch to Short-Term Rentals in Croatia?
If you own property in Croatia — whether it's currently a long-term rental, a family home you use occasionally, or just sitting empty — you're not alone in wondering if short-term rentals might be a better financial move. With tourism continuing to grow and platforms like Airbnb making it easier than ever to host, the promise of higher income is tempting. But is it actually worth the switch? In this guide, we’ll break down what property owners are really earning in 2025 — across both short- and long-term strategies — and when making the change makes sense.
What Most Property Owners Earn from Long-Term Rentals
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 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.
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.
Short-Term Isn’t Always Better — Here’s When to Wait
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 Management Makes or Breaks STR Success
Dynamic Pricing = More Than Just Higher Rates
Dynamic pricing isn’t just about charging more — it’s about charging right. 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.
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.