Short Term Let

Short-term lets refer to rental agreements that last for a few nights up to a few months, rather than the traditional six or twelve-month tenancy. They are often used for holiday rentals, business travel, or temporary relocation, and can generate higher rental yields than long-term lets, especially in popular city centres or tourist areas.

With the rise of platforms like Airbnb and changes in travel behaviour, short-term lets have become a popular strategy for landlords and investors seeking flexible income and quicker returns.

Regulations: Local councils may require planning permission or have restrictions on how often a property can be let short-term, particularly in major cities.

Management Requirements: Short-term lets require active management, including frequent cleaning, guest communication, and handling bookings.

Income Potential: While the nightly rate is often higher, occupancy can fluctuate with seasons and market demand.

Assured Shorthold Tenancy (AST): The most common long-term rental agreement in the UK, typically lasting 6–12 months.

Holiday Let: A type of short-term let specifically designed for holidaymakers, often qualifying for different tax treatment than standard rental income.

Serviced Apartment: A fully furnished apartment available for short stays, often with hotel-like amenities.

Buy-to-Let: A property purchased specifically to be rented out, either on a long-term or short-term basis.

Advantages: Short-term lets can generate higher income per night than long-term rentals, with flexibility to adjust pricing based on demand. They also allow owners to use the property themselves between bookings, which can be appealing for second homes.

Disadvantages: They require more hands-on management and incur higher operational costs due to cleaning, turnover, and booking platforms. Regulatory changes and planning restrictions are also becoming more common, especially in cities like London and Edinburgh.

Short-term lets are popular among investors looking for high-yield opportunities in urban centres or tourist hotspots. However, success depends on location, local regulations, and effective management.

For those seeking a hassle-free way to enter the short-term let market, our dedicated partner CasaCity offers fully managed apartments in prime Manchester locations, tailored for flexible rental strategies.

Scenario: An investor purchases a city-centre apartment in Manchester and lets it out on Airbnb to business travellers during the week and tourists at weekends, achieving a higher monthly return than a standard tenancy.

Do I need permission to run a short-term let?

Yes. You may also need planning permission or have to follow local council restrictions, especially for letting out a property more than 90 days a year.

Can I short-term let any property?

Not always. Leasehold agreements, building policies, or local authority rules may restrict short-term letting, so always check before starting.

As of 2024, short-term lets made up over 5% of the UK rental stock, with hotspots in London, Manchester, Edinburgh, and coastal areas. Yields from short-term letting can exceed 8–10% in high-demand locations, but returns vary significantly depending on occupancy rates and regulations. Recent tightening of local planning laws has also led to increased scrutiny of short-term rentals in urban centres.