In 2024, short-term Airbnb letting remains competitive with long-term tenancies in London, although with bank of England interest rates still being high many people in London are putting off buying and continuing renting, which pushes up long-term rental prices. Having said that, in many cases short-term rental could be an advantageous option for many landlords.
Short-term rentals generally offer higher income potential, especially in a high-demand city like London, where landlords can adjust prices based on market conditions, events, and tourism seasons. In some cases, short-term lets can bring in up to 30% more than long-term rentals.
The ability to frequently inspect and maintain the property between guest stays is another advantage, allowing landlords to ensure their property remains in top condition.
However, short-term lets come with challenges such as higher running costs, more frequent management of bookings and guest turnover, and potential gaps in income during off-seasons. The 90-day rule, which limits the number of days a property can be let short-term in London, adds further complexity.
Long-term tenancies, by contrast, offer greater stability. The average tenant stays for about 4.3 years, providing consistent rental income without the need for constant management. This is especially appealing to landlords seeking a more hands-off approach. However, long-term tenant full management comes with fees that are very comparable to short-term rentals.
Furthermore, long-term lets are subject to stricter tenant protections and regulations, such as those introduced by the Renters' Rights Bill, which can make it harder to regain control of a property if issues arise.
Overall, short-term Airbnb letting can be more profitable but requires more active involvement, while long-term rentals offer steady income and stability with fewer day-to-day demands. Landlords' preferences for flexibility or stability will typically dictate which model they choose.
If you are a landlord with a long-term tenancy coming to an end and you’re considering short-term lets - do get in touch with us for an in depth analysis and calculation, so you can make the best informed decision which of the two fits your property and situation the best!
