Retirement Income: The Case of Direct Investment in Short-Term Rental Property Compared to a Dividend Stock

Abstract

The rise of Airbnb and similar online platforms is prompting many retirees to consider short-term rental property as an alternative retirement investment. Therefore, the ability to analyze short-term rental property investment is important for financial planners who are helping retirees make informed decisions to potentially meet their retirement goals. This case study illustrates how to use the capital expenditure (CAPEX) evaluation process and its analysis to determine if short-term rental property investment is a viable alternative retirement income compared to a dividend stock performance.