As Ethiopia’s capital city continues to grow into a thriving hub for commerce, culture, and tourism, property owners in Addis Ababa are presented with exciting opportunities. One of the most important decisions you'll face is whether to lease your property on a short-term or long-term basis.
With a steady influx of tourists, business travelers, expats, and NGO workers, the demand for housing is diverse. But choosing the right rental strategy depends on your goals, the location of your property, and the type of tenant you want to attract. In this guide, we’ll explore both options, examine their advantages and challenges, and help you figure out which rental path makes the most sense for you.
Understanding Short-Term Rentals in Addis Ababa
Short-term rentals refer to fully furnished properties leased for a few days to a few month at a time. These types of stays have become increasingly popular among travelers from the Ethiopian diaspora, international professionals attending events or conferences, and tourists visiting the city for short visits.
Many short-term rental hosts use platforms like Livingethio.com. Areas such as Bole, Kazanchis, and Sar Bet are especially attractive for short-term stays because of their central location, access to restaurants and cafes, and proximity to Bole International Airport.
Short-term rentals allow property owners to charge more per night compared to long-term leases. A modern one- or two-bedroom apartment in Bole, for example, might bring in $70 to $150 per night, while luxury villas in Old Airport or Bisrate Gabriel can earn more. The higher income potential is attractive, but it comes with responsibilities. Frequent bookings mean regular cleaning, guest communication, key handovers, and property maintenance all of which can be time-consuming unless you hire a reliable property manager.
Moreover, income from short-term rentals can fluctuate depending on the season . High seasons like holidays, conference periods, and Ethiopian New Year typically bring more bookings, while other months may be quieter.
There are also legal aspects to consider. In some cases, short-term rental properties may be required to register as a business and comply with tax regulations, including VAT. Not doing so could lead to penalties or complications down the line.
Looking for the best areas to invest in short-term rentals? Check out our guide on the Best neighborhoods in Addis Ababa for families.
Exploring Long-Term Rentals in Addis Ababa
On the other hand, long-term rentals offer a more stable and hands-off investment. These leases generally range from six months to several years and are ideal for tenants who are settling down for work, family, or diplomatic service.
In Addis Ababa, long-term rental demand is especially strong among local professionals, international organization staff, embassy employees, and returning diaspora. These clients often seek comfort, privacy, and consistency. While long-term tenants usually pay less per month than short-term guests, the benefits often outweigh the difference. With consistent monthly income and less day-to-day management, long-term rentals can provide peace of mind to property owners.
For instance, a well-furnished two-bedroom apartment in areas like Summit or CMC can generate between $500 and $900 per month. Meanwhile, standalone villas in high-demand neighborhoods such as Old Airport or Megenagna can command anywhere from $2,000 to $4,000 monthly. Since these tenants often stay for extended periods, they tend to handle minor maintenance themselves, reducing the landlord's responsibilities. Additionally, fewer tenant turnovers mean savings on marketing, cleaning, and preparing the space between stays.
Another advantage of long-term rentals is the simpler legal framework. Leasing out a property long-term doesn’t typically require a business license, and taxes can be easier to manage. However, landlords should still draft clear lease agreements and ensure that rent terms, deposits, and responsibilities are legally protected. While less common, challenges such as delayed rent or difficult evictions can arise, so it's important to vet tenants and set expectations early.
👉 Want deeper insight into where long-term rentals perform best in Addis Ababa and why location plays a crucial role? Explore our guide to the top neighborhoods for real estate investment in 2025, where we highlight areas like CMC, Summit, Old Airport, and Bisrate Gabriel as standout choices
Which Rental Strategy Is Right for You?
The best rental model ultimately depends on your goals. If you’re looking for higher income and don’t mind being more involved in day-to-day operations, then short-term renting could be a great option especially if your property is in a high-demand area like Bole or Kazanchis. It also offers flexibility: you can block out time to use the home yourself or adjust your rates based on demand.
But if you're aiming for consistency, minimal involvement, and a stable tenant relationship, long-term leasing may be the better fit. Many investors prefer long-term rentals because they can rely on steady monthly income, especially if the property is being leased to embassies, NGOs, or expats under formal contracts.
In our experience at Live Ethio, some landlords even choose a hybrid approach: offering short-term rentals during high season, and locking in long-term tenants during quieter months. This strategy works best when you have a team or agency helping you manage bookings, listings, and maintenance.
Location Matters And So Does the Right Support
Not all neighborhoods in Addis Ababa are equally suited for both rental types. Bole, Kazanchis, Sar Bet, and CMC are hotspots for short-term stays due to their convenience and vibrant lifestyle. Long-term tenants often favor Old Airport, Bisrate Gabriel, Ayat, Megenagna, and Gerji areas with quieter surroundings, international schools, and diplomatic zones.
That’s why working with a knowledgeable real estate agency matters. At Live Ethio, we help landlords understand market trends, set the right rental prices, and match their properties with ideal tenants whether they’re renting for a weekend or a year.
Find Short-Term and Long-Term Rentals with Live Ethio
Live Ethio makes the process simple and stress-free. We offer:
- Fully furnished apartments and villas available for monthly, or yearly rent
- Properties in the most sought-after neighborhoods of Addis Ababa
- Honest pricing, verified listings, and clear lease terms
- Personalized assistance based on your needs, budget, and timeline
- Bilingual support in English and Amharic for local and international clients
Whether you're a property owner looking to earn income or a renter searching for your next home, we’re here to help you succeed.
Ready to Rent or List a Property in Addis Ababa?
Contact us today and let us guide you through your options. Whether you’re leaning toward short-term or long-term leasing, we’ll help you make the most of your property.
📲 Contact us on WhatsApp: +251-974-299-472
🌐 Visit our website: livingethio.com
📧 Email us: contact@livingethio.com
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