In Bangalore or any places where a lot of people come for 1, 2 or even 1 week, short term rentals becomes much more profitable than longer rentals. For example you have a 1 BHK in the prime location and you rent it out for 10K per month.
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And at the same time you can use the short term rentals like AirBNB where you can keep the cost as Rs 1K per day. Now even at 50% occupancy, the short term rentals are much more profitable than the monthly rentals. This is what a lot of people have started doing with their rentals. The only catch is that you have to have a good location as well as you can devote some time managing the Rentals.
For example, in the first month you keep little low amount to increase the occupancy and people will find you and then you will have visibility. The money can be reinvested to make it a fully furnished room, because that increase the rental worth. And after 2 to 3 months when all settled you can increase the rent and even if the occupancy decreases you will be in profit.
I also thought of renting out some property as an AirBNB but the problem is that, it needs good Capex investment if you don't have the room. If you have the room and in good location then airbnb is much better option. For example, I was looking for hotels in Coorg, bit in December they became too expensive. So the next option was honestly, and thus the per day rent was Rs 1.5K. And since it's December the occupancy will increase and thus the profit will be even out.
And this will work now in Bangalore too because now people usually come for 2 to 3 days in a week, then cab opt for short term rentals and thus can enjoy without having the burden of renting out the whole place.
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