Two Different Businesses, Two Different Risk Profiles

If you own a property near Stratton Mountain, you have a choice that most Vermont landlords don't: you're sitting in one of the strongest short-term rental markets in New England. That means the income gap between STR and LTR is real and significant. But so is the difference in how much work — and risk — each path requires.

Here's an honest comparison, specific to the southern Vermont market in 2025.

The Income Comparison

Long-Term Rental (LTR): $18,000–$30,000/Year

Long-term rental rates in the Bondville/Winhall/Manchester corridor depend heavily on property size and condition. Broadly:

  • 1–2 bedroom: $1,200–$1,800/month ($14,400–$21,600/year)
  • 3–4 bedroom: $1,800–$2,800/month ($21,600–$33,600/year)
  • 5+ bedroom: $2,500–$3,500/month ($30,000–$42,000/year)

These figures assume a quality tenant on a 12-month lease. Vacancy between tenants typically costs 1–2 months of rent annually. Net of a property manager (if you use one, typically 8–10% for LTR), your annual yield looks like $17,000–$35,000 depending on property size.

Short-Term Rental (STR): $40,000–$90,000+/Year

Well-managed vacation rentals near Stratton earn considerably more. Gross revenue benchmarks:

  • 1–2 bedroom: $28,000–$45,000/year
  • 3–4 bedroom: $45,000–$70,000/year
  • 5+ bedroom with premium amenities: $75,000–$110,000+/year

After a 25% management fee, cleaning coordination, maintenance, insurance, and utilities, net operating income typically falls to 55–65% of gross — or $25,000–$65,000+ depending on the property.

The income advantage for STR is real: on a comparable property, well-managed short-term rental typically out-earns long-term rental by $15,000–$30,000 per year. On a larger or amenity-rich property, the gap can be $40,000 or more.

The Honest Tradeoffs

What Long-Term Rental Gets Right

Predictability. A 12-month lease means 12 months of known income, no vacancy management, and no dynamic pricing decisions. You can set it and leave it for a year.

Lower operational overhead. No per-turn cleaning, no guest communication, no amenity restocking. If you use a property manager, the fee is lower. If you self-manage, the time commitment is minimal compared to STR.

Wear and tear. Twelve guests per year (LTR tenants) cause less cumulative wear than 80–100 short-term rental guests. This affects maintenance budgets and property longevity.

Personal use flexibility. LTR gives you essentially no personal use of the property. That may be fine if this is purely an investment asset.

What Short-Term Rental Gets Right

Income ceiling is much higher. A well-managed 5BR property near Stratton won't earn $40,000 as a long-term rental. As an STR, it can earn $85,000+. The income gap is the primary reason owners choose STR.

Flexibility and personal use. You can block off weekends for personal use without violating a lease. This is a real quality-of-life benefit for owners who want to use the property themselves.

Appreciation alignment. Short-term rentals in ski markets have been appreciating alongside STR income. Properties with a proven revenue track record command higher sale prices than comparable LTR properties.

Dynamic pricing upside. During peak ski weekends, well-positioned properties can earn $1,500–$3,000+ per night. LTR income is capped by the lease rate regardless of market conditions.

Factors That Should Drive Your Decision

Location

Properties within 15 minutes of Stratton's base lodge are in the STR sweet spot. Properties further out — say, Manchester Center or Dorset — still perform well as STRs, but the income advantage narrows and the LTR comparison becomes closer.

Property Type and Amenities

A property with a hot tub, sauna, or pool has a significant STR premium that does not translate to LTR rates. If your property has high-demand amenities, you're leaving the most money on the table by going LTR.

Your Involvement Tolerance

Self-managed STR is a real job. Even managed STR requires owner communication, occasional decision-making, and attention to your owner statements. If you want to be genuinely passive, LTR is a better fit — even at lower income. If you're willing to be engaged (or trust a good manager to be engaged on your behalf), STR pays the premium.

Financing and Tax Situation

STR income can have favorable depreciation treatment under certain IRS rules. LTR has its own tax profile. This is a conversation to have with your CPA before deciding — it's not a minor consideration, especially on high-revenue properties.

The Bottom Line

For most well-located Vermont properties near Stratton, short-term rental out-earns long-term rental by a meaningful margin — often $20,000–$40,000 per year on a mid-size property. The tradeoff is operational complexity, which a good management company largely resolves.

If you're trying to decide which path makes sense for your specific property, get a free revenue estimate from Far & Away Homes. We'll model both scenarios honestly and give you the numbers to make the decision clearly.