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Short-Term Versus Long-Term Rentals – What’s Better?

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Many people actively earn a decent passive income, with some making up to 30% more profit, by renting out their investment properties and holiday homes on short-term let platforms like Airbnb. However, before you rush to upload a listing, consider carefully the pros and cons of both short-term and long-term rentals.

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Short-term rentals: The pros

Earning Higher Profits – Recent statistics reveal that short-term lets can secure homeowners profits 60% higher than those from long-term lets. For instance, a property earning £1,000 as a long-term let could potentially triple its earnings as a short-term let. Checking nightly rates on platforms like Airbnb quickly shows the significant financial gains available.

Enjoying Diverse Interactions – If you love meeting people from all over the world, you’ll find great value in short-term letting. It offers the chance to meet a variety of interesting guests, sharing experiences that can greatly enrich your life.

Experiencing Greater Flexibility – As the owner of a short-term let, you control when and how long you rent out your space. Should your circumstances change, you have the option to remove the listing or move into the property yourself. For example, if you want to use your Airbnb for a family holiday during the summer, you can easily block out those dates on your calendar. This level of flexibility is unattainable with long-term letting.

Short-term rentals: The cons

Staying On Call – When renting your place as a short let, you must be available around the clock to meet guests and respond to their messages. Listing your property on websites like Airbnb involves handling numerous emails and guest queries, where delayed responses can negatively affect your ratings and visibility on the site.

Frequent Cleaning – New guests arriving weekly means you’ll be doing a lot of dusting, vacuuming, and general cleaning, not to mention regularly washing towels and bed linen. If you dislike household chores, consider hiring professionals, but remember to set an appropriate cleaning fee to cover these costs.

Building Trust with Strangers – Trusting strangers with your space can be more challenging than with a long-term tenant who has undergone thorough reference checks. While platforms like Airbnb generally maintain a high level of trust between guests and hosts, as an Airbnb host, you must be comfortable with welcoming strangers into your home.

Engaging in Marketing – Due to the high turnover of guests, short-term lets require ongoing promotion. You’ll need to keep your listing visible on platforms like HomeAway and Airbnb and use other online marketing and social media tools to attract guests.

Navigating Legal Regulations – In some areas, like London, regulations restrict property owners from renting their places as short lets for more than 90 days a year. Always verify local regulations to avoid fines or legal issues when choosing to rent out your property as a short let.

Long-term rentals: The pros

Long-Term Let

Enjoying Peace of Mind – Hosting long-term tenants means you don’t have to constantly market your property. As a property owner, you can relax knowing your property will be occupied for an extended period, requiring much less effort from you compared to managing a short-term let.

Securing Guaranteed Income – Although short-term lets might offer higher nightly rates, they don’t guarantee maximum occupancy. With long-term tenants, you secure a steady income that is locked in for the duration of the rental agreement.

Benefiting from Invested Tenants – Long-term tenants tend to take better care of your property, knowing they will live there for at least six months. Most of them strive to maintain the property to a high standard, which is a significant advantage for you as the owner.

Long-term rentals: The cons

Dealing with Being Locked In – Life often presents unexpected twists and turns. Being bound to a 12-month contract with a tenant may not be ideal if your circumstances change. Long-term lets limit your ability to adjust occupancy plans or invite friends to stay in your rental during special occasions like Christmas, leading to a lack of flexibility that many owners find challenging.

Relinquishing Control – In a short-term rental, you have the freedom to enter the property after guests depart and manage maintenance and cleaning as you see fit. However, with long-term tenants, you surrender this control. You become dependent on the tenants for the care and maintenance of your property, which can be a significant concern.

Calculate Your Potential Short-Term Rental Income

After considering the pros and cons of short-term and long-term rentals, you can now make an informed choice about what’s best for your property. Consider using our free online calculator to estimate your property’s income potential as a short-term let before making a decision. You may find the amount you can charge per night surprising. For advice about your earning potential, contact Keey. We offer assistance in managing the hassles of running a short-term let, allowing you to enjoy a steady income with ease.

Should You Hire a Short-let Management Company?

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Deciding to get into short-term renting can be a big choice for property owners. Many wonder if they should handle everything themselves or get a management company to help. Short-term renting is really popular now in the UK, and there are lots of companies out there ready to help property owners manage their holiday homes.

But like anything else, there are good and bad things about hiring a short-let management company. If you’re new to this or thinking about investing in a holiday home, keep reading to find out more.

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The Not-So-Good Parts

1. Less Control:

Some people love the idea of running their holiday home by themselves and talking to guests directly. But when you hire a short-let management company, they take over everything. They might tell you when you can or can’t use your own property, and you might not have much say in who stays there or how problems are solved.

2. Extra Costs:

Management companies charge fees, and this can take away from your profits. There might be a fee to get started, a fee for every booking, and other fees to help run your property. If you know how to manage things yourself, you might prefer to save that money.

3. No Promise of Money:

Just because you hire a company and pay them every month, it doesn’t mean you’ll always have guests and make money. Even the best companies can’t promise this.

The Good Parts

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1. They Know What They’re Doing:

If you’re new to this kind of business or want more bookings, a company like Keey can really help. They do everything from listing your place, taking professional photos, managing guests, cleaning, and much more. Even if your holiday home is far from where you live, they can take care of any guest needs at any time. They’ve been doing this for over eight years and really know how to make guests happy.

2. They Help You Get Noticed:

Many owners find it hard to market their holiday home. Pass the Keys can do this for you, listing your property on top UK websites and using the best technology to make sure people see your place. They are a trusted company with great reviews.

3. Make More Money:

While it’s not guaranteed, Pass the Keys does things to make sure you get the most from your property. They adjust prices to keep them competitive, try to fill any open dates, and work with local cleaning and maintenance people to save you money.

4. Stress-Free Owning:

Their service covers everything, so you can just relax and maybe even think about expanding your holiday home business. They give you support at every step, from advice on how to set up your property, mortgage tips, and keeping you in the loop about any rules you need to know. They also check all guests to make sure your property is safe.

In the end, whether you choose to work with a holiday home management company depends on your own situation, like how much time you have, where your holiday home is, and your past experience.

To learn more about what we offer, check out the Services page.

Discover how much your property could earn you