Guide toshort termrental management

Airbnb can be seriously lucrative if you’re successful as a short let landlord. Making onto the Superhosts list is a worthwhile ambition: you’ll gain more visibility, earning potential and exclusive rewards. But you’ll need to secure a response rate of at least 90%, host at least ten trips, never cancel, and have at least 80% five star ratings. While there are benefits and drawbacks to both long and short term rentals, there is a potential for amazing returns on your property in the short lets market. Not every property is suited to success on the short lets market; desirability as a short-term holiday let depends on factors like location, property style and interiors. As property experts, SevenStays have compiled this short guide to short term rental management success.

Short term vs long term rentals: the pros and cons

A short term rental is usually let for anywhere from one to 30 days. In the UK, a furnished holiday let is defined as a property which is let to the public for at least 210 days in a given tax year. Long term rentals usually range from a 12-month lease term at an annual rent and longer. Most residential leases are for 12 months, although local landlord and tenant regulations may differ.

The key advantages of short term rentals, as opposed to longer leases, are the following.

Dynamic Pricing

Flexible pricing is one of the biggest draws for short term lets. You can cater to supply and demand, by adjusting your price as you see fit. When there is more demand in summer or at New Year, landlords can raise their rent and receive increased income.

Potential for higher gross income

Short term rentals in sought-after areas can be listed at higher prices with nightly rates. Depending on the season and local demand, the property could command two to three times more than a long-term rental. There’s potential to earn double the amount as you would with a longer lease.

Personal use

Some investors and landlords like to reserve the use of their property for themselves when it isn’t in use. You can block out dates when you’d like to use the property.

Keep the property in better repair

With a short term let, the less frequent wear and tear means that the property will be easier to maintain. A holiday rental property will be cleaned before and after each stay, which generally leads to a better maintained property and a lower likelihood of long-term damage.

Increased flexibility

As a landlord or investor, offering your property as a short-let makes it easier to sell the property when you like. With a long term resident, this can be trickier, as you’ll need to wait for the tenant’s lease to end, or give them appropriate notice, depending on the terms of your rental agreement.

Save on mortgage costs

Since holiday lets are classed as a business instead of an investment, landlords can deduct mortgage interest from their profits.

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Our Latest Blogs

Our blog is a great place to get to grips with the world of Airbnb hosting and the short term rental tools we use.

How To Manage An Airbnb Property Successfully | SevenStays
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What is a Managed Airbnb & A Short Term Let?
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Top 5 UK City Breaks for Vacation Rentals | SevenStays
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Prep For Winter With An Airbnb Property Management Company
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Challenges with short term rentals

Although there is great earning potential in short term rentals, it can also be challenging.

  • Consistent income is not guaranteed
  • Competitive markets
  • Higher risk of void periods than longer-term lets (although Sevenstays minimise this risk significantly!)
  • Mortgage rates tend to be higher, due to the risks associated with holiday lets being greater than with longer rentals.

On balance, the earning potential of short term lets outweighs the potential drawbacks. With the right assistance, landlords and investors can secure high booking rates, and enjoy high revenue from their Airbnb listing(s).

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Marketing is a key stage in achieving success in the short term rental sector. A good management firm can ensure this is done effectively, by promoting your property to new audiences and securing high booking rates. This includes optimising all of your listings, and distributing your rental across a wide range of platforms.

If you want to find out more about your property’s eligibility for the short lets market, get in touch with our friendly team here. We also offer a free estimation of your property’s income potential.

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