Follow our blog to keep yourself updated and become an investment pro.
Your search results

Long Let vs Short Let investment

Posted by Jehan Anis on May 27, 2022


Long Let vs Short Let Investment


Property is undoubtedly one of the best investment options a person can make for generating long-term returns and a strongly-funded pension pot. However, it is essential to consider how property can create wealth in the long term and provide sufficient momentary income. Therefore, this blog will explore the benefits and drawbacks of short-term rentals vs long-term tenants.


What is a long or short let?


The duration of a long-term let is typically one year or more and is usually always longer than six months. This sort of let is termed a residential lease, and the tenant will have signed a tenancy agreement with the owner.


On the other hand, a short-term let is a guest’s accommodation and is frequently used during vacations or quick trips away.


These often range from one night to several weeks but never exceed six months. Short-term let’s are commonly associated with vacation let companies host Airbnb and manage holiday cottages.


How is short-term let better than long-term?




Given that short-term let is frequently booked as vacation accommodations, individuals are ready to spend much more to stay there, resulting in increased revenue. The rent for these short-term rentals may fluctuate throughout the year, rising in the summer and during school vacations, but is always greater than that of a long-term let (on average 30 percent more).


When taking a vacation, individuals want to enjoy the full benefits of the place and are willing to pay for the whole experience; this includes staying in houses close to the destination’s famous attractions and entertainment sites. If you’re wondering why someone would choose a long-term lease over a short-term one, it’s pertinent to mention that a long-term rental may be a safe and straightforward solution since it delivers a more secure and predictable income without finding weekly tenants.


Even though short-term rentals may not be fully booked every week of the year, the increased rent pricing during significant holiday periods compensates for this. Since the recent development of ‘staycations,’ most popular in coastal places, and the rising popularity of advertising platforms such as Airbnb listings and Vrbo, homeowners in areas such as Ceredigion rarely have to worry about a lack of interest. It is so simple to locate vacation rentals and for landlords to find tenants.


Renovation And Tenants


Another advantage of short-term rentals is that the property is maintained to a far higher standard. Due to constant use, long-term properties experience more wear and tear and are not as well-maintained as short-term properties. 


Short-term properties are cleaned after each booking (some for as little as a few days), so they remain in good condition at all times. 


These frequent visits and inspections also ensure that any problems or damages are identified and repaired before they worsen. This indicates that the property will likely incur fewer maintenance and repair expenses. 


Moreover, tenants that are difficult to manage might lead to contract terminations and additional fees for landlords. Again, short-term renting eliminates this risk because bad tenants will only be staying for a brief period. It is adaptable and permits the owner to accept and evict renters at his or her discretion.


Easy Management


Despite all the apparent advantages, the time and effort required to regularly clean and maintain the property is the key issue that discourages individuals from considering short-term rentals. It can become full-time work in maintenance, client engagement, and overall management, despite generating substantially higher revenue.


A vacation rental agency leaves you with fewer concerns and substantial funds in your bank account.


In short, they are feasible and eliminate the trouble typically associated with short-term letting. With the assistance of a holiday rental agency, you have to explore short-term rental for your house.

Leave a Reply

Your email address will not be published.

Compare Listings

Enter your details to download the Guide


Established in 2019, Star Sterling is a family-run business based in the UK. As a cutting-edge investment advisory firm, we aim to deliver top-of-the-line investment services to all our valued clients. Leveraging a dynamic combination of finance and real estate expertise, we specialize in B2SA, R2SA, and BTL property investments.
Our professionals work tirelessly to identify the best investment solutions for estate agents, landlords, and investors and cultivate long-term partnerships for future success. We partner with businesses to find suitable properties to provide premium accommodation on a short-term basis to business travelers and contractors. By creating customized strategies for our clients, our services extend beyond the traditional confines of real estate

Our Typical Investors are

✓ People with a minimum of £7,500 to invest into Rent To Serviced Accommodation and £50,000 into Below Market Value property deals
✓ Looking to build high cash-flowing Rent To Serviced Accommodation portfolio (either passively or self-managed)
✓ Looking to buy Below Market Value residential properties with 8% to 10% annual return on capital
✓ Looking to achieve financial freedom through property investment in the UK
✓ Looking for safe and secure investment opportunities with low risk
✓ Looking to build a legacy for their family’s future

Subscribe to get the latest Updates.