When deciding how to rent out your property, there are a few key factors to consider — your long-term financial goals, the flexibility you need, and the type of property you own.

For example, a small apartment in a tourist hotspot might generate far more as a short-term let, while a family home in a commuter area near London may provide steadier income and lower vacancy as a long-term rental.

As a landlord, it’s important to weigh up the pros and cons of both strategies — from yields and occupancy rates to flexibility and the legal requirements coming into force in 2025.

What is a Short-Term Let?

A short-term let is typically any rental arrangement lasting less than six months. In practice, this could mean nightly stays, week-long bookings, or month-to-month tenancies.

Short-lets are most commonly used by:

• Holidaymakers
• Business travellers
• People relocating or between homes

The rise of platforms like Airbnb and Booking.com has made short-lets more accessible, but also more competitive. At the same time, new regulations are being introduced. From 2025, a national register for short-term lets is expected in England, and some local councils (especially in tourist areas) are imposing caps or licensing rules.

Short-Term Lets vs Holiday Lets

Short-term holiday lets are generally marketed to tourists for periods from 3 nights up to around 31 days.

For a property to qualify as a furnished holiday let for tax purposes, it must:

• Be available to rent for at least 210 days per year
• Be let commercially for at least 105 days
• Be let at market rates (not just to friends/family at discounted prices)

A long-term let (also known as a buy-to-let) usually involves a rental period of 6–12 months or more, providing greater stability.

Advantages of Short-Term Lets

Higher Potential Income
Because pricing is set per night, well-located properties can earn up to 30% more than a traditional long-term tenancy — sometimes even higher during peak season.

Flexibility
You can block off dates for personal use — whether for family visits, renovations, or your own holiday stays.

Lower Risk of Rent Arrears
Guests usually pay upfront through booking platforms, which reduces the risk of arrears or lengthy eviction battles.

Disadvantages of Short-Term Lets

Time-Intensive Management
Running a short-let is more like running a hospitality business than a tenancy. It requires:

• Frequent guest changeovers
• Coordinating cleaning and maintenance
• Delivering a hotel-style guest experience

Lower Occupancy Rates
Without strong marketing and the right location, occupancy can suffer. For example, the average UK holiday let occupancy rate in 2023 was around 32%.

Higher Running Costs
Frequent cleaning, linen replacement, utilities, platform fees, and maintenance costs can quickly eat into profits.

Final Thoughts on Short-Term Lets

Short-lets can be profitable but demanding. They require more input and higher operating costs than long-term rentals, but if managed well, the financial returns can be significantly higher. Before choosing this route, ask whether your property and location are suited to short-term demand.

Advantages of Long-Term Lets

Steady Income
Long-term rentals provide predictable monthly income, helping landlords with financial stability and planning. Vacancy is typically low — with an average of around 4% in the UK — and usually only occurs at the end of a tenancy.

Lower Day-to-Day Management
Compared to short-lets, long-term rentals involve less turnover. With good tenants, most long-term arrangements are straightforward, with fewer ongoing tasks.

Mortgage & Insurance Benefits
Lenders and insurers tend to prefer long-term lets due to their stability, making financing and cover easier to secure than for holiday lets.

Disadvantages of Long-Term Lets

Compliance Requirements
Landlords must stay on top of strict legal obligations, including:

• Annual gas safety checks
• EICRs (Electrical Installation Condition Reports) every 5 years
• EPCs rated E or above (with C proposed as the minimum from 2028)
• Right to Rent checks, HMO licences, and fire safety standards

Failing to comply can result in fines or legal action.

Lower Yields
Long-lets typically generate less monthly income compared to well-run short-lets.

Tenant Risk
Problem tenants can still arise — from arrears and property damage to antisocial behaviour. With Section 21 eviction rights expected to be abolished, regaining possession may also become slower.

Which Should You Choose?

• Choose Long-Term Lets if you want predictable monthly income with fewer management demands.
• Choose Short-Term Lets if you want higher earning potential and flexibility — and are prepared for the higher workload (or appoint a management company to handle it).

Whatever you decide, the key is organisation, compliance, and consistent management. At LocationHome, we specialise in short-lets that deliver maximum returns with zero hassle for landlords — combining higher yields with a completely hands-off experience.

Every landlord wants to see strong returns, but maximising rental yield doesn’t mean cutting corners. In fact, at Location Home, we’ve found that maintaining high standards is often the key to higher earnings.

Here’s how we help clients increase income without sacrificing quality.

1. High-Quality Presentation Pays Off

First impressions count. Properties that are clean, stylish and professionally presented tend to attract better reviews, more bookings, and higher nightly rates. Our team provides guidance on interiors that appeal to your ideal guest, whether it’s a professional, a family, or a corporate client.

The result? A more competitive listing that commands a premium price.

2. Consistency Builds Trust

Guests value consistency. That’s why we apply hotel-style standards across all our managed properties, from the linen and lighting to the welcome touches. This not only enhances guest satisfaction but also leads to repeat bookings and referrals, helping to boost your occupancy rate and overall yield.

3. Smart Pricing, Real-Time Adjustments

Our bespoke management service includes dynamic pricing, adjusting rates based on demand, seasonality and market trends. This ensures your property is always competitively priced while still delivering strong returns.

4. 24/7 Guest Support Means Fewer Problems

Our round-the-clock concierge service means guests are supported before, during, and after their stay. This reduces complaints, increases satisfaction, and helps you maintain high ratings, which in turn drives more bookings at higher rates.

5. Tailored Strategies for Every Property

No two properties are the same. We take a bespoke approach to management, carefully aligning our strategy with your specific goals; whether that’s high occupancy, long-term income, or luxury short-lets.

 

Want better returns and happier guests?
Let Location Home show you how high standards and smart strategy can work hand in hand.

When it comes to property management, there’s no such thing as “one size fits all.” Every property is different, and so are the needs of every landlord and guest. That’s where bespoke property management comes in, and at Location Home, it’s the foundation of everything we do.

What does “bespoke” really mean?

Bespoke property management means tailoring every aspect of our service to suit the specific goals of the property owner and the unique character of the property. Whether it’s a high-end residential flat or a short-let commercial space, we design a management model that works for you, not just for us.

It could be adjusting pricing to match seasonal demand, advising on interior design to maximise appeal, or setting occupancy targets to increase returns. We don’t follow a script. Instead, we create a strategy that’s aligned with your expectations and ambitions.

Why is this approach important?

Because properties are investments, and every landlord has different priorities. Some want to maximise yield. Others want peace of mind with minimal involvement. Many want both. A bespoke approach allows us to deliver real results based on real needs.

It also benefits guests. With our hotel-style consistency and attention to detail, they know they’re staying in a property that’s cared for, well-managed, and designed for comfort.

The Location Home difference

Our team works closely with you to understand your property, your preferences, and your goals. We then take care of everything; from listing and guest communication to 24/7 concierge support and ongoing maintenance. The result is a stress-free, profitable experience that feels tailored from start to finish.

Ready to make more of your home, and less of the hassle?

Get in touch with Location Home today to see how our bespoke property management can work for you.