Here at Own Homes, we work with both landlords and investors across a wide range of property strategies. Two of the most popular, and often most debated, are short-term lets (such as holiday homes and serviced accommodation) and long-term rentals (traditional assured shorthold tenancies). Both can be effective but they suit different goals, risk profiles and lifestyles.
What is a Short-Term Let?
A short-term let typically involves renting a fully furnished property for anything from a few nights to a few months. Guests might be tourists, corporate travellers or people between moves.
Short-term lets can offer high headline income, particularly in popular locations or at peak times of year. However, they also come with greater volatility, higher operating costs and more active management.
Key Pros and Cons
Short-term lets generally offer:
- Potentially higher gross income in strong markets
- Flexibility to use the property yourself between bookings
- Ability to adjust nightly rates to respond to demand
- Higher running costs (e.g. cleaning, utilities, furnishings, platform fees)
- More time-intensive management and guest communication
- Greater exposure to seasonal demand and regulatory change
Long-term rentals generally offer:
- Predictable monthly income and fewer void periods
- Lower management intensity and fewer check-ins/check-outs
- Tenants are often responsible for some utilities and council tax
- Lower gross yields compared with a successful short-term let
- Less flexibility to regain possession quickly
- Limited ability to adjust rent during a fixed term
Financial Considerations
From a purely financial perspective, short-term lets can outperform long-term rentals on a gross yield basis, particularly in high-demand tourist or business locations. However, it is important to factor in:
- Occupancy levels – a high nightly rate means little if the property sits empty
- Operating costs – cleaning, linen, utilities, internet and platform fees add up
- Management – unless you self-manage, you may pay higher fees for specialist operators
Lifestyle, Regulation and Risk
Short-term lets tend to suit landlords who are comfortable running a more hands-on, hospitality-style operation and who have the time to manage bookings, cleaning and guest communication. It is also important to understand local planning rules, licensing requirements and tax treatment, as the regulatory landscape for short-term accommodation can be complex and subject to change. By comparison, long-term rentals usually appeal to those who prefer a more “set and forget” approach, with simpler day-to-day regulation, fewer moving parts and a stable asset that can be held over the long term with relatively minimal intervention.
The right strategy for you will depend on your location, financial objectives, risk tolerance and the time you are able to commit to managing your property. If you are considering short-term lets, long-term rentals, or a blend of both across your portfolio, we would be happy to help you explore which route is most likely to meet your goals. Get in touch today.