Long-Term Lets vs Short-Term Lets – Which is Right for You
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Long-Term Lets vs Short-Term Lets – Which is Right for You?

ByJoanna Gardiner

For landlords starting out in property letting, one of the first big decisions is choosing the right rental strategy. Some prefer the stability of fixed monthly income, while others look for higher returns and greater flexibility. Long-Term Lets vs Short-Term Lets is a key consideration, with each option offering different benefits and challenges. While long-term lets provide a steady rental stream with minimal involvement, short-term lets can be far more profitable, especially when professionally managed to ensure high occupancy rates and seamless operations.

At Lux Local Homes, we specialise in fully managed short-term lets, helping landlords increase their earnings while removing the hassle of guest management, cleaning, and maintenance. In this post, we’ll explore Long-Term Lets vs Short-Term Lets, comparing their advantages, challenges, and which option is best for landlords who want a profitable, stress-free investment.

What Are Long-Term Lets?

A long-term let involves renting a property for six months or more under a tenancy agreement. Many landlords choose this option for **predictable income and minimal involvement**. With a signed tenancy agreement, rental payments remain consistent, providing financial stability. Additionally, long-term leases reduce the need for frequent marketing and guest turnover.

  • Long-Term Lets: These offer consistent rental income through a fixed tenancy agreement, which provides security for landlords. With a standard tenancy contract, you’ll receive steady monthly payments without worrying about frequent vacancies. However, long-term lets limit your flexibility, meaning you won’t have easy access to your property for personal use.
  • Short-Term Lets: These allow landlords to block out dates when they need the property for personal use while also taking advantage of higher rental rates during peak seasons. However, bookings can fluctuate, leading to less predictable income compared to long-term rentals.

Which is better?

If financial stability is your priority, a long-term let may be the safer choice. However, if you prefer higher earnings with more control over your property, short-term letting is a more flexible option.

Income Potential

The potential earnings from your rental property will depend on several factors, including location, demand, and pricing strategy.

  • Long-Term Lets: Typically generate steady but lower rental income. Landlords are limited to local rental market rates, and annual increases are regulated by tenancy agreements. In many cases, rental yields for long-term lets remain fixed, meaning you may miss out on higher potential earnings.
  • Short-Term Lets: Offer significantly higher earning potential, especially in high-demand areas like Shoreditch, London, and Woodbridge, Suffolk. Landlords can adjust their pricing based on seasonal demand, special events, and local trends. This flexibility allows for premium rates during busy periods, such as summer holidays and festive seasons.

What Lux Local Homes Offers

We optimise pricing strategies based on market trends, ensuring our landlords achieve maximum occupancy and higher revenue. Our data-driven approach ensures that your property is priced competitively while attracting the right guests.

Property Maintenance and Wear

Property maintenance is another important factor when deciding between long-term and short-term lets.

  • Long-Term Lets: With tenants staying for extended periods, landlords may not regularly inspect the property. This can lead to gradual wear and tear, and in some cases, neglected maintenance issues that go unnoticed until the end of the tenancy. Additionally, evictions due to property damage or non-payment can be a lengthy legal process.
  • Short-Term Lets: Require frequent cleaning and maintenance, but this ensures that issues are addressed immediately. With professional property management, every guest checks into a clean and well-maintained home, reducing long-term damage.

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