Real estate investors who once fueled the rapid growth of short-term rentals are increasingly moving away from the Airbnb model, according to Joseph Keshi, founder and CEO of Keshman Property Management. Instead of acquiring new properties for short-term use, many investors are selling off existing Airbnb holdings or converting them to long-term rentals.
“The only thing that we saw a shift in last year was Airbnbs,” Keshi says. “People have really come out of that mindset. Our investors are not buying properties anymore to Airbnb them—if anything, they’re liquidating those Airbnb holdings or switching them to long-term rentals.”
Keshi says the change reflects more than a temporary slowdown. Based on his experience managing investor-owned properties, he describes a broader reassessment of risk, effort, and returns that is reshaping how investors approach residential real estate.
Keshi notes that the pullback from short-term rentals among his clients has been consistent, suggesting structural pressures rather than isolated property-level issues. In many markets, stricter regulations, rising competition from both individual hosts and institutional operators, and shifting travel patterns have made short-term rentals less attractive than they were just a few years ago.
Operational demands are also a key factor. Unlike long-term rentals, which typically require attention during tenant turnover and periodic maintenance, short-term rentals demand continuous management. Owners must oversee guest communications, cleaning schedules, pricing adjustments, and reviews, either personally or through paid management services, which reduces net returns.
While risks such as property damage and nonpayment exist across all rental types, Keshi says short-term rentals expose owners to them more frequently. An Airbnb property may host dozens of guests in a year, each of whom represents a potential issue, compared to a long-term rental, which usually involves screening one tenant annually.
Investors exiting short-term rentals are not leaving real estate altogether, Keshi says. Instead, they are refocusing on traditional rental properties and placing renewed emphasis on property fundamentals.
“If you can get into a property, you want to be aware of where we are in terms of the overall cost of things like a roof,” Keshi says. “How old is the roof? How is the hot water system? How are the HVAC systems?”
This shift reflects a change in priorities. While short-term rental investors often focus on aesthetics, furnishings, and location appeal, long-term rental investors concentrate on durability and predictable operating costs. With less opportunity to offset expenses through high nightly rates, controlling maintenance and capital expenditures becomes more critical.
Keshi advises investors to closely evaluate mechanical systems before purchasing. “Those items are what will eventually cost you the most amount of money,” he says. “Making sure they’ve been updated helps avoid large expenses once the property is rented.”
The transition away from short-term rentals could have broader effects on housing markets, particularly in areas where Airbnb investors previously paid premiums for properties with strong tourist appeal. As these buyers leave the market or adjust their criteria, demand for certain property types and locations may soften.
Properties designed for short-term use may also need to be repositioned for long-term tenants, who often value functionality and affordability over luxury finishes or short-term amenities. According to Keshi, converting an Airbnb into a long-term rental requires more than a simple change in marketing.
“Laws are constantly changing, rules are constantly changing,” he says. “You want to make sure you have someone that’s on top of that.”
Property management firms are adapting to this shift. Keshi says Keshman Property Management has adjusted its approach to focus on long-term rental evaluations, including realistic income projections, renovation needs, and the condition of major systems in the Jacksonville market.
“This is an asset at the end of the day that needs the right asset manager behind it,” Keshi says. “It’s not just collecting rent. There’s a lot that goes on in the background.”
Whether the retreat from short-term rentals will continue depends on future regulatory changes, travel demand, and whether new investors enter the space with different expectations. For now, Keshi says, markets like Jacksonville are seeing a clear shift toward long-term rental strategies focused on stability rather than maximum nightly returns.
As investors recalibrate, the emphasis is moving back to fundamentals: property condition, manageable operating costs, and steady cash flow. Those who adapt to the realities of long-term rentals, Keshi says, may find more predictable returns—and fewer operational surprises—in the years ahead.
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