The Hidden Environmental Cost of Short-Term Rentals — and How to Reduce It

Edited and reviewed by Brett Stadelmann.

Short-term rentals have reshaped travel worldwide. But behind the convenience and charm lies a quieter environmental footprint that rarely makes it into sustainability conversations.

Short-term rentals are often framed as a greener alternative to hotels — more space, fewer shared facilities, and a sense of “living like a local.” Yet the reality is more complicated. The environmental impact of holiday rentals varies dramatically depending on how properties are operated, maintained, and managed.

Understanding those hidden costs — and the levers that actually reduce them — is essential if sustainable travel is to mean more than good intentions.

Why short-term rentals can quietly waste more resources than hotels

At first glance, a standalone home or apartment may seem inherently more efficient than a hotel. In practice, many short-term rentals use more energy, water, and materials per guest-night than comparable hotel stays.

One reason is inconsistency. Hotels operate under centralised systems: energy management, linen reuse policies, waste separation, and maintenance schedules are standardised across hundreds of rooms. Short-term rentals, by contrast, are often fragmented — each property running as its own small operation.

Research into accommodation energy use has shown that unoccupied or intermittently occupied dwellings can be surprisingly inefficient, particularly when heating, cooling, and hot water systems are not optimised for short stays. The International Energy Agency has repeatedly highlighted buildings as a major driver of global energy demand, especially when efficiency measures are poorly implemented.

Without clear protocols, holiday rentals may be cleaned and reset as if every guest were arriving for the first time — full linen changes, heavy chemical use, lights and air conditioning left running between bookings, and minimal guidance for guests on waste or water use.

The Hidden Environmental Cost of Short-Term Rentals — and How to Reduce It

Linen, cleaning, and the overlooked footprint of “turnover”

The environmental cost of short-term rentals is often concentrated in what happens between stays.

Frequent linen washing is a major contributor. According to the International Energy Agency, water heating accounts for a significant share of residential energy use, and repeated laundering compounds that impact. Add commercial detergents, tumble drying, and transport, and the footprint grows quickly.

Cleaning products are another blind spot. Many short-term rentals rely on conventional chemical cleaners chosen for speed and perceived effectiveness, rather than environmental safety. These chemicals enter wastewater systems and indoor air — affecting cleaners, guests, and ecosystems alike.

Individually, each stay may seem insignificant. Multiplied across thousands of bookings per year, the impact becomes systemic.

Why management standards matter more than property type

The sustainability performance of a holiday rental has less to do with whether it is a house, apartment, or cabin — and more to do with how it is managed.

Properties overseen by professional managers are often better positioned to implement consistent environmental practices: smart thermostats, energy audits, water-efficient fixtures, cleaning protocols that prioritise low-toxicity products, and clear guest guidance.

In Australia, for example, some operators have begun formalising sustainability practices across their portfolios. Some companies have illustrated how centralised short-term rental management can make it easier to standardise energy use, maintenance schedules, and waste-reduction measures across multiple properties — something individual hosts often struggle to do alone.

This does not make professionally managed rentals inherently “sustainable.” But it does create structural opportunities to reduce impact at scale.

Guest behaviour still matters — but only within clear systems

Travel behaviour research consistently shows that guests are more likely to act sustainably when expectations are made explicit. Studies cited by the UN Environment Programme suggest that simple interventions — such as clear instructions, visual prompts, and feedback — can significantly reduce water and energy use.

Yet many short-term rentals offer little more than a Wi-Fi password and checkout time. Without guidance, guests default to convenience.

Clear systems make a difference:

  • Explaining when linen will be changed — and when it won’t
  • Providing visible recycling and compost options
  • Setting default thermostat limits
  • Offering local transport and low-impact activity suggestions

Sustainability cannot rely on goodwill alone. It needs structure.

Community and housing impacts: sustainability beyond carbon

Environmental sustainability is only one part of the picture. Short-term rentals also affect housing availability, neighbourhood cohesion, and local economies.

Research from organisations such as the OECD has documented how poorly regulated short-term rental markets can tighten housing supply and drive up rents in high-demand areas. These pressures disproportionately affect lower-income residents and essential workers.

Responsible operation therefore includes compliance with local regulations, caps, and zoning rules — not working around them. From a sustainability perspective, social impact and environmental impact are inseparable.

What lower-impact short-term rentals actually get right

While no accommodation model is impact-free, lower-impact holiday rentals tend to share a few traits:

  • Energy-efficient appliances and climate control systems
  • Reduced linen turnover for short stays
  • Low-toxicity, biodegradable cleaning products
  • Clear guest guidance on water, energy, and waste
  • Compliance with local housing and planning regulations

These practices are easier to implement consistently when management is centralised and accountable — but they are not guaranteed by professionalism alone.

The bottom line

Short-term rentals are neither sustainability villains nor heroes by default. Their impact is shaped by operational choices — often invisible to guests — that accumulate over time.

If sustainable travel is to move beyond marketing language, it must focus on systems: how properties are cleaned, powered, maintained, and governed. In that context, the question is not whether short-term rentals should exist, but whether they are run in ways that respect environmental limits and community wellbeing.

Reducing the hidden footprint of holiday accommodation is possible. But it requires transparency, standards, and a willingness to look beyond the surface appeal of “staying like a local.”