A Short Stay Property Management Company Explains Short Lets

Benefits of short-term lets, with a short stay property management company

When purchasing an investment property, you may be wondering exactly which let agreement is best suited to maximise investment and profit margins. Often overlooked is the use of short-term lets. This type of agreement provides an impressive profit return for a property owner and requires less maintenance than your traditional long-term let agreement. The team behind SevenStays’ elite Airbnb management services explore and explain the potential benefits of short-term lets for property owners in this helpful guide.

What is a short-term let?

Short term rentals are residential tenancies which typically last for less than six months, and in which the rent charged includes all utilities. Short term rental properties are expected to be fully furnished, with a fully-equipped kitchen as well as bed linen. Short-term lets have been increasingly popular over recent years with seasonal workers and business travelers alike as they offer a host of benefits for renters when compared with long term rentals. Some of the perks of short term rentals include:

  • Flexibility in a guest’s living arrangements – even as far as nightly rates in some circumstances
  • They offer guests the freedom to live in a new location should they so desire
  • Short letting is a great short-term accommodation solution for guests that are on the property ladder and may find themselves between homes
  • The short term rental property market is highly convenient for those arriving in the country on a temporary visa, who will only be here for a short amount of time

Benefits of short-term lets for landlords

Due to the short length of the contract, a property owner can charge higher prices for their short-term rental property than they would a long-term let. Short-term letting can therefore be an incredibly lucrative business for property owners – especially if your property is in a sought-after location. Some landlords are known to make the equivalent of one month’s rent at a long term let in one week at a short-let property!

With short-term lets, there is less hassle too, as you won’t need to fill out as much paperwork, and you can earn more rental income with a short let property portfolio as you have more freedom to adjust your rent to stay in line with current demand and the going rate. Contracts for long-term rentals are often fixed at a given price – ‘locking in’ property owners and preventing them from adjusting their prices or earning more money, as prices around them (and utility bills) rise.

Eligible for tax benefits

Your property may be eligible for certain tax reliefs if it qualifies as a furnished holiday accommodation letting (FHL)  . In order to do so, a property must comply with the following criteria:

  • Your property is available for letting 210 days in the year
  • Lets do not last more than 31 days
  • Your property must be furnished
  • Your property must be in the UK, EU, or EEA areas

Though some short-term lets won’t be compliant with these tax benefits, you can find out more about tax relief eligibility here. If your property doesn’t qualify as an FHL than you may be eligible for other tax rebates such as:

  • Mortgage Interest tax relief
  • Business Rates relief
  • Capital Gains tax relief and more.

Return on investment (ROI) on holiday lets

Just like property management, short letting on platforms like Airbnb, Rightmove or Zoopla is a business. The purpose of being an Airbnb host, taking all of these guest bookings and getting help from a property management service like SevenStays is, at the end of the day, to earn rental income and make money.

We’ll talk more about our property management services below but before we do so, let’s not forget that there are other factors that can affect how much appeal your short term rental property has with Airbnb guests and those on other platforms too. As a result, the factors that we’re going to talk about below can definitely also have an impact on things like guest experience, occupancy rates and therefore how much rental income you may be able to earn through short letting as well – or to put it in more business-oriented terms, your Return on Investment.

Property locations

This is one of the most important things to bear in mind. Those on the property ladder are well aware of the term ‘Location, Location, Location’, and the same maxim applies to short let properties. If your property is in a sought-after location where you can take advantage of tourism, you are more likely to have a better ROI.

Property features

If you have desirable features in your property, this can make it a big seller. Where possible it is also important to furnish your short-term let in such a way that it has certain features and amenities, so that it is eligible for some tax benefits – such as meeting the requirements for classification as an FHL.

Number of rooms

This can have a big factor on your ROI, as the more rooms you have, the more profit you are able to make from your letting.

Pricing strategy

How you price your let is equally as important. One tip could be to charge more than your average daily rates on weekends, bank holidays and peak season for vacations – times when your property is likely to experience high demand – so you can really make the most of those upcoming bookings.

In conclusion

Short-term lets are more management intensive than long term ones – but that problem is easily solved with help from SevenStays. Our property management services eliminate lengthy tasks, such as managing listings, guest communication, changeovers and cleaning, as these details are taken care of by our team of experts. We can also handle all enquires and take care of your short-term rental admin from application to completion, and help with other aspects of managing an Airbnb property, such as providing a 100% turn-key experience, and facilitating a 24-hour-check-in.

You can join SevenStays right now if you’d like, or to find out more about our management company and our support you can check out our FAQ page, take a look at our case studies to see how we’ve helped hosts just like you, or contact our helpful team today.


The SevenStays Blog is a great place to get to grips with the world of airbnb hosting, and the support that we offer. Check out our latest blogs below, or for more advice why not take a look at the entire archive?

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