Close Icon

Do I choose Short-term or Long-term?

In general, people tend to rent out their additional properties on either a long-term or a short-term basis in order to monetize them.

We will look into what each of these approaches really means for you as an owner and what the advantages and disadvantages of each are. 

What Is Short-Term Letting?

An example of a short-term letting would be a property that is rented for no more than 6 months at a time. It is mostly seen in holiday and self-catering accommodation where properties are being booked anywhere from a few days to a few months in advance.

What Are the Benefits of Short-Term Letting?

Income potential 

Long-term letting has a limit on how much income you can earn, whereas short-term letting has no limit. pricing of long-term letting is exclusively determined by a monthly basis, while the price of short-term letting is determined by a weekly or daily basis and fluctuates throughout the year. It is ultimately down to the level of bookings that you receive that determines the success of your short-term rental.

Short-term lets can benefit from more significant tax benefits in comparison to long-term lets. Click here to read more information about this

Own usage 

Bryniau in Treaddur Bay, Anglesey

A lot of people who have second homes want to be able to enjoy their properties as well. Short-term letting provides that flexibility, it allows you to use the property as much or as little as you wish. The choice is always there. We recommend keeping some of our busiest months, including July, August, and December, available for booking, especially during the summer holidays.

Level of involvement 

With short-term letting, your own usage allows you to keep an eye on your pride and joy. You can also use your own usage time to carry out essential maintenance and repairs to keep the property looking fresh. 

With long-term letting, you are relying on the tenants to keep the property up to standard and report faults etc as they occur.  

What Is Long-Term Letting?

Silva Holiday let in North Wales

Long-term lets are generally those that last 6 months or more and can typically last up to a year. It’s usually for one tenant/family for the duration of the contract. Long-term is used when people seek a permanent home.

What Are the Benefits of Long-Term Letting?

Guaranteed income 

With long-term letting, you can ensure a consistent income, which can be difficult with short-term letting. Many people find it important to have the security of a guaranteed income, especially if they own a property and have a mortgage.

We can estimate how much money a short-term rental property will earn on average over a year; however, this is only an estimate, and it ultimately depends on bookings and availability.

Fewer costs 

Long-term tenants typically cover all additional costs such as council tax, utility bills, and contents insurance. With short-term letting, you must cover this. As mentioned above, council tax relief can be claimed.

Less involvement 

Both long-term and short-term will require your input. However, long-term should require less of your time. Your tenants will most likely take care of the upkeep of the property, you will just need to ensure all the health and safety compliance matters are dealt with as and when required.  

In the short term you’re having to deal with constant changeovers and regular maintenance and repairs. However, at Menai Holidays we have management options that can arrange all of this for you!

Below we have summarised the main advantages and disadvantages of both approaches.  

Short Term Letting vs Long Term Letting - Menai Holidays

Get involved in the Discussion

Comments are closed.