Is short-term Airbnb rental competitive with long-term rentals?

In 2024, short-term Airbnb rentals will continue to compete with long-term rentals, although with interest rates still high, many people are reluctant to buy and continue to rent, driving up long-term rental prices. Nevertheless, in many cases, short-term rentals can be an advantageous option for many landlords.

Short-term rentals

generally offer higher income potential, especially in cities with high demand, where landlords can adjust prices depending on market conditions, events and the tourist season. In some cases, short-term rentals can earn up to 100% more than long-term rentals.

Another benefit is the ability to regularly inspect and maintain the property between guests' stays, so landlords can ensure their property remains in top condition.

However, short-term lets also come with challenges, such as higher operating costs, more frequent management of bookings and guest turnover, and potential income gaps in the low season. The 90-day rule, which limits the number of days a property in London can be rented out on a short-term basis, complicates matters further.

Long-term tenancies, on the other hand, offer more stability. The average tenant stays for around 4.3 years and ensures a constant rental income without the need for constant management. This is particularly interesting for landlords who do not want to have to worry about management all the time. However, there are fees for managing long-term tenants that are very comparable to those for short-term tenants.

In addition, long-term lets are subject to stricter tenant protections and regulations, such as those introduced by the Renters' Rights Bill, which can make it more difficult to regain control of a property if problems arise.

Overall, short-term Airbnb rentals can be more profitable but require more active engagement, while long-term rentals offer a stable income and stability with fewer daily demands. Landlords' preferences in terms of flexibility or stability usually determine which model they choose.

If you are a landlord whose long-term tenancy is coming to an end and you are considering a short-term let, you should contact us for a thorough analysis and calculation so that you can make an informed decision as to which of the two models best suits your property and situation!