Published on and written by Cyril Jarnias
Airbnb vs Long-Term Rental: Which Offers Better Returns in North Macedonia?
In an economic climate where property management is becoming increasingly crucial, the comparative analysis between Airbnb and long-term rentals in terms of profitability is drawing attention from investors in North Macedonia.
With the rising popularity of short-term rental platforms and fluctuations in the real estate market, it’s essential to explore which options offer better returns across the country’s cities.
Local Trends and Economic Factors
This article examines recent studies, highlighting local trends and economic factors influencing property owners’ decisions in key regions such as:
- Skopje
- Ohrid
- Bitola
By highlighting the advantages and disadvantages of each approach, we provide a clear perspective on the unique dynamics of this evolving market.
Good to Know:
The choice between Airbnb and long-term rental heavily depends on the property’s location and tourist seasonality in North Macedonia.
Analysis of Seasonal Rental Returns in North Macedonia
| City | Gross Airbnb Return (%) | Gross Long-Term Rental Return (%) | Airbnb Occupancy Rate (High Season) | Long-Term Rental Occupancy Rate |
|---|---|---|---|---|
| Skopje | 8–12 | 4–6 | 70–90% | >95% |
| Ohrid | 10–15 | 4–5 | >90% (Summer) | >95% |
| Bitola | 7–10 | 3.5–5 | ~75% (Summer) | >95% |
Economic Factors Influencing Returns
- Strong tourist demand in Ohrid during summer, less pronounced in Skopje and Bitola.
- Seasonality impacts occupancy rates and nightly prices:
- Ohrid experiences a summer peak with high Airbnb profitability, but many properties remain vacant off-season.
- Skopje benefits more from business travel and urban tourism year-round, ensuring better stability for long-term or monthly rentals.
- Nightly rates via Airbnb are significantly higher than traditional monthly rates, especially during tourist peaks or local events.
The potential gross return via Airbnb is generally higher during peak season in tourist areas like Ohrid. In Skopje, profitability remains attractive year-round thanks to business travelers and digital nomads. Conversely, long-term rental offers stable but lower income throughout the year.
Comparative Summary
| Criterion | Short-Term Rental (Airbnb) | Long-Term Rental |
|---|---|---|
| Potential Income | Higher in peak season | Regular but lower |
| Volatility | High (seasonality/variable pricing) | Low |
| Management | Complex: frequent check-ins/outs; platform fees; regular cleaning | Simplified management between tenants |
| Legal Security | Depends on compliance with local regulations/certificates/tourist tax | Lease protected by law; stable legal framework |
Concrete example:
A well-located 2-bedroom apartment in Ohrid can generate up to €1,000/month via Airbnb in July/August, compared to about €300–400/month in traditional annual rental, but this level drops below €200/month during the off-season.
Legislative Points
- In North Macedonia, there are declarative obligations for short-term rentals:
- Registration with local authorities required to obtain an official license (“rental license”).
- Tourist tax collected per night.
- Non-compliance exposes to administrative fines or temporary rental ban.
- For long-term rentals:
- Written contract mandatory (>30 days), governed by the Macedonian civil code.
- Enhanced rights for tenants after three years of occupancy in some cases.
Key Factors Influencing Strategy
- The choice between short or long term depends on:
- The property’s precise location (city center vs. lakeside area),
- The expected tenant profile (international tourist vs. local resident/professional),
- Own capacity to manage frequent check-ins/outs/logistics,
- And especially strict compliance with evolving local regulations around platforms like Airbnb.
Illustrative Comparative Chart
Estimated Net Return (€)
↑
1200 ┤ *
1000 ┤ ***
800 ┤ *****
600 ┤ ***
400 ┤ **
200 ┼───**
│ │
Off-season ←────→ Peak Season
(Airbnb) (Airbnb)
(Stable year-round = Long-Term Rental)
Recap List – Advantages & Limitations
- Short-term rental advantages:
- High potential during tourist peaks;
- Contract flexibility;
- Quick adaptation to market trends/dynamic pricing.
- Short-term rental limitations:
- Strong seasonality outside major cities;
- Time-consuming management/high fees;
- Increased legislative risk if non-compliant.
- Long-term advantages:
- Financial stability/predictability;
- Less sensitive to market variations/precise location;
- Less subject to sudden regulatory changes.
Good to Know:
In North Macedonia, the return on seasonal rentals via Airbnb varies considerably between Skopje, Ohrid, and Bitola. In Skopje, stable tourist demand offers good potential, although competition is strong, while in Ohrid, tourist influx is highly seasonal, which can affect average income. Bitola, though less touristy, presents interesting opportunities with less saturation on Airbnb. Long-term rentals exert less pressure related to seasonality, offering income stability, but often at lower rates. Analysis of recent data shows that Airbnb occupancy rates in Skopje can reach 70% in peak season, compared to 50% in Ohrid and 30% in Bitola. Local legislation imposes specific regulations for short-term rentals, such as mandatory registration, thus influencing rental management strategies. Property owners should consider seasonal fluctuations and regulatory requirements to maximize their rental returns.
Profitability Comparison: Airbnb vs. Long-Term Rental
| City | Average Monthly Rent (Long-Term) | Average Airbnb Rate (€/Night) | Airbnb Occupancy Rate (%) | Potential Monthly Airbnb Income |
|---|---|---|---|---|
| Skopje | €350–500 | 30–45 | 55–70 | €495–945 |
| Ohrid | €250–400 | 35–65 | 65–85 | €682.5–1,657.5 |
| Bitola | €200–300 | 25–40 | 50–65 | €375–806 |
Assumptions: potential income calculated based on (nightly rate × occupancy rate × 30) nights.
- Long-term rents are more stable and predictable: standard lease contract, simplified management, less turnover.
- Renting via Airbnb generates higher income during peak season and tourist surges, but remains subject to high variability linked to tourist demand and seasonality.
- In summer or during major local events (festivals in Ohrid or international conferences in Skopje), rates can double or even triple compared to the rest of the year. Occupancy rates can then exceed annual averages.
Main Additional Costs for Short-Term Rentals like Airbnb:
- Platform fees (Airbnb takes ~15% on each booking)
- Property management/concierge if owner delegates check-in or cleaning (~20% of revenue possible)
- Increased expenses: frequent maintenance, laundry
- Potential local taxes specific to tourist furnished rentals
- Investments in furniture and decoration
Local Regulatory Considerations:
- Some cities are beginning to regulate tourist rentals (mandatory declarations to municipal authorities).
- Possible temporary restrictions during summer or events to limit pressure on residential housing.
Elements Strongly Influencing Profitability
Tourist Demand
Ohrid benefits from summer tourism around the lake; Skopje attracts more business/cultural tourism with more regular attendance year-round; Bitola sees peaks during cultural festivals.
Seasonality
Income via Airbnb can be up to three times higher in peak season than in low season. The annual average will therefore largely depend on the actual off-season occupancy rate.
Comparative Advantages List:
Airbnb
- Higher gross potential during peak periods
- Flexibility to alternate between short and medium/long term depending on market
- Ability to quickly adjust nightly rates
Long-Term Rental
- Increased financial security through stable lease
- Less exposed to tourist flow variations/local regulations
- Simplified management with reduced expenses
Effective net profitability will therefore depend on:
- Local tourist dynamism,
- Your capacity/logistics to ensure a high level of short-stay service,
- Your risk tolerance related to seasonal variations,
- The rules governing this type of rental in each considered city.
Good to Know:
In North Macedonia, profitability between Airbnb and long-term rental varies significantly by city; in Skopje, the average price for a long-term rental is €300 monthly, while an Airbnb can generate €40 per night with an average occupancy rate of 65%, thus offering a potential monthly income of €780. However, Airbnb incurs management fees of 15%, while being subject to strict regulations, especially during peak tourist season. In Ohrid, known for its lively summers, Airbnb is often more lucrative due to a major tourist influx, but in Bitola, limited tourist demand makes long-term rentals more stable and predictable. Local events and seasonality can strongly impact profitability: for example, Ohrid during the film festival can see Airbnb rates double. Thus, property owners must gauge these factors to maximize their returns by adapting to seasonal fluctuations and market trends.
Factors Influencing Rental Contract Profitability
The factors influencing rental contract profitability in North Macedonia are multiple and vary by city, tourist seasonality, type of rental (short or long term), as well as local regulatory and economic frameworks.
Seasonal Tourism Variations
- Tourism in North Macedonia remains moderate but experiences sustained growth, with a regular annual increase in foreign tourist arrivals, mainly during the summer period and around major cultural events.
- Tourist peaks concentrate in Ohrid during summer thanks to the lake and international cultural festivals, while Skopje attracts more during urban or professional events.
- In 2023, nearly 41,000 tourists were recorded for February alone; this figure rises sharply during summer.
- Seasonal fluctuations directly influence demand for short-term rentals.
Average Long-Term Rental Prices by City
| City | Average Monthly Rent (1-bedroom apartment city center) |
|---|---|
| Skopje | €250 to €400 |
| Ohrid | €150 to €300 |
In Ohrid, prices can increase significantly during peak tourist season for all accommodation categories.
Rental Demand: Short vs Long Term
- Demand for short-term rentals explodes during summer in Ohrid. In Skopje, it remains more stable year-round but increases during professional or academic events.
- Long-term demand is driven by students (especially in the capital), expatriates, and some assigned employees. It remains less volatile but offers lower returns outside major tourist areas.
Impact of Local Regulations on Airbnb
In some cities like Ohrid, classified as a UNESCO World Heritage site, there are temporary restrictions aimed at limiting the number or type of accommodations offered via Airbnb to preserve the local fabric and combat real estate speculation.
In Skopje, although more flexible currently, increased monitoring is observed regarding tax declarations related to income from digital platforms.
Rates on Airbnb and Other Platforms
| City | Average Airbnb Nightly Rate Peak Season |
|---|---|
| Skopje | €30 to €50 |
| Ohrid | €40 to +€100, depending on location |
In low season, these rates can drop by up to -40%.
Costs Associated with Property Management
Short-term rentals:
- Platform fees: ~15% on each booking
- Cleaning/maintenance: about €10–20 per turnover
- Outsourced management (optional): up to +20% of revenue
Long-term rentals:
- Initial agency fees: often one month’s rent
- Annual routine maintenance: variable (~5–10% of gross income)
“North Macedonia has undertaken for several years infrastructure improvement operations notably by renovating its two international airports, a striking example being Skopje 2014”
— This periodically boosts the rental market during major urban operations or cultural events.
Major music or art festivals organized each year temporarily attract an international clientele willing to pay more for centralized accommodation in Ohrid or Skopje. Similarly, any major new real estate development can temporarily increase available supply while also stimulating certain specialized segments like high-end event accommodation.
Visual Summary – Comparative Impact
| Factor | Main Effect on Profitability |
|---|---|
| Summer season | Strong increase in short-term prices/rentals |
| Cultural event | Temporary peak demand/prices |
| Regulation | Risk of supply/platform limitations |
| Real estate dev. | Potential increase in competition/supply |
The dynamic combination of these factors requires flexible management adapted to the local cultural calendar and legislative developments specific to major Macedonian urban areas.
Good to Know:
The profitability of rental contracts in North Macedonia depends on several key factors. Seasonal tourism variations play a crucial role, especially in Ohrid, popular in summer which increases demand for short-term rentals through Airbnb, while in Skopje, demand remains more stable but oriented towards long-term stays. This directly influences average rental prices, where Ohrid sees more competitive rates during the off-season. Local regulations, often restrictive for Airbnb rentals, can limit supply thereby creating scarcity and price increases. Meanwhile, management costs differ: short-term rentals often include cleaning and service fees for the platforms used, while long-term rentals require less maintenance but can involve payment delays or vacancy periods. Cultural events like Ohrid’s summer festival favor temporary rentals, whereas continuous real estate development in Skopje could curb long-term rent increases by increasing available supply.
Case Study: Impact of Major Cities in North Macedonia
Skopje, Bitola, and Ohrid are among the major cities of North Macedonia. Skopje, the capital, concentrates the country’s political, economic, and academic activity. Bitola is recognized for its cultural heritage and historical role as a commercial center in the southwest. Ohrid stands out for its UNESCO-classified heritage wealth, attracting particularly dense seasonal tourism around its lake.
The impact of Airbnb compared to long-term rental varies according to local urban dynamics.
| City | Estimated Number of Airbnb Listings (2025) | Long-Term Rental Supply | Airbnb/Long-Term Ratio |
| Skopje | High (several hundred) | Significant supply | Strong competition |
| Bitola | Medium | Moderate | Rapid Airbnb growth |
| Ohrid | Very high in summer | Low off-season | Seasonal predominance |
In these cities:
- Airbnb primarily appeals in tourist areas or near city centers.
- In Skopje, the long-term market remains supported by student and professional demand.
- In Ohrid, over 60% of apartments available during summer are offered short-term while traditional annual supply diminishes.
- Bitola experiences rapid Airbnb growth but maintains a stable base of classic rentals for local residents.
Tourist trends strongly influence property owners’ choices:
- Rise in international tourism, especially in Ohrid (+15% foreign visitors over two years), pushing owners to favor Airbnb during peak season.
- Stable local demand in Skopje encourages some landlords to maintain a mix between long-term rental and short periods via digital platforms.
Annual financial comparison:
| Type | Average Annual Income (Estimates) |
| Long-Term Rental – Skopje | €3,600 – €4,200 |
| Short-Term Rental – Skopje | €6,000 – €7,500 |
| Long-Term Rental – Bitola | €2,400 – €2,800 |
| Short-Term Rental – Bitola | up to €4,500, but variable |
| *In Ohrid peak season | *up to +80% compared to long-term |
Local testimonials:
“During July and August, I earn as much with Airbnb as in six months of traditional rental,” explains an apartment owner in Ohrid.
A municipal study conducted last March shows that over a third of residents in Ohrid’s old center have switched to tourist rental over the past five years — certainly generating more individual income but drastically reducing the traditional residential rental stock.
In terms of distinctive economic model,
Ohrid presents the most marked case:
The city massively optimizes its income through summer short-term rentals; however, this also generates strong pressure on local housing accessibility off-season. This model thus offers other regional tourist destinations a powerful example of both the potential and risks associated with increased dependence on Airbnb during tourist peaks.
This case illustrates how each city adapts its rental strategy according to its tourist attractiveness and specific demographic needs.
Good to Know:
In North Macedonia, major cities like Skopje, Bitola, and Ohrid present diversified real estate dynamics regarding rentals. In Skopje, the country’s economic center, Airbnb is growing in popularity with over 400 active listings, surpassing long-term rentals. Bitola shows a balance with about 250 Airbnb listings, while Ohrid, popular for its cultural tourism, records a clear advantage for Airbnb, representing nearly 70% of available rentals. Rising tourism strongly influences property owners, who perceive an annual return 15 to 25% higher with Airbnb compared to long-term rentals. Local studies indicate that, while this strengthens the tourist economy, it also leads to soaring real estate prices, complicating access to affordable housing for residents. Skopje stands out with a resilient economic model thanks to its ability to attract not only tourists but also business travelers, thus offering economic stability that could serve as a model for other cities in the country.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
