short-term lets
CategoriesInvestor Advice

In the modern, technology-driven world, the realm of property renting has witnessed a paradigm shift. The rise of short-term lets, bolstered by platforms like Airbnb and VRBO, has created a new dynamic in the housing market that’s both exciting and challenging. These platforms have revolutionized the industry, bringing forth a host of benefits but also introducing a new set of risks for property owners and tenants alike. This blog post will delve into these benefits and risks, offering a balanced perspective on the short-term let market.

Benefits of Short-Term Lets

1) Potential for Higher Income

Short-term lets can often command higher rental rates per day compared to long-term leases. Particularly in high-demand locations such as tourist hotspots or major cities, short-term rentals can significantly outperform traditional long-term leases in terms of revenue.

2) Flexibility

For property owners, short-term lets offer flexibility. They can use the property when they need it and rent it out when they don’t. For tenants, it provides the freedom to explore different locations without being tied down by long leases.

3) Greater Market Reach

Online platforms like Airbnb have global visibility, which means your property can be viewed by potential tenants from all corners of the globe. This wide market reach can lead to increased occupancy rates.

4) Personal Use

Short-term lets offer the advantage of personal use. If you own a vacation property, you can block out dates for your own vacations while renting it out for the rest of the year.

Risks of Short-Term Lets

1) Increased Wear and Tear

The high turnover rate of short-term rentals can result in increased wear and tear on the property. Frequent check-ins and check-outs mean more cleaning and maintenance, which can add to your expenses.

2) Regulatory Challenges

Many cities and towns have zoning laws and regulations concerning short-term lets, with some places requiring specific licenses or permits. Non-compliance can lead to hefty fines and legal troubles.

3) Income Instability

Unlike long-term leases, which guarantee income for a set period, short-term lets can be unpredictable. Factors such as seasonal demand fluctuations, global events, or changes in travel trends can significantly impact your rental income.

4) Increased Management Time

Short-term lets can require more hands-on management than long-term rentals. Frequent tenant turnover means more time spent on advertising, tenant screening, property maintenance, and dealing with tenant issues.

Finding a Good Location for Short-Term Lets

short-term lets

Finding a good location for short-term lets can be a game-changer in terms of revenue and occupancy rates. Here are some tips to help you identify prime locations

1) Tourist Attractions

Locations close to popular tourist spots, historical landmarks, or natural beauty often see high demand for short-term rentals. Vacationers or tourists are more likely to rent properties where they can easily access attractions.

Properties near business districts or conference centres are highly sought after by business travellers. These guests often prefer home-like amenities over traditional hotel rooms and might require longer stays.

Use online tools to research demand and competition in potential areas. Locations with high demand but low supply could present lucrative opportunities.

2) Accessibility

Locations with good transportation links, close to airports, train stations, or major highways, are typically desirable. The easier it is for guests to reach your property, the more likely they are to book.

3) Amenities

Properties in proximity to amenities like restaurants, shops, parks, or entertainment venues often fare well in the short-term rental market. Convenience is key for many travellers.

The amenities you choose to provide within the property should align with your target guests’ needs and expectations. A business traveller might appreciate a high-speed internet connection and a quiet workspace, while a family on vacation might prioritize a fully equipped kitchen and entertainment options. Tailoring your amenities to your guests can set your short-term let apart from the competition.

Developments with hotel-style amenities such as a swimming pool, kids play area, gymansium and sauna are also highly sought-after for holidaymakers and will give your property an edge in this competitive market

4) Safety

Travelers prioritize safety. Locations with low crime rates and safe neighbourhoods tend to attract more bookings. Travellers value peace of mind when visiting areas that are new and unknown to them. Knowing that they’re staying in a secure location allows guests to relax and enjoy their holiday without worrying about potential threats or dangers.

In essence, prioritizing safety is not just about mitigating potential risks, but also about enhancing the guest experience. A safe, secure stay can lead to positive reviews, repeat bookings, and a solid reputation in the short-term rental market.

5) Local Regulations

Check local laws and regulations regarding short-term rentals. Some cities have strict rules which might affect your ability to rent out your property.

The regulatory environment for short-term lets in the UK can be complex and varies from city to city. For example, London has a 90-day limit per year for short-term lets unless planning permission is obtained.

Dubai’s Department of Tourism and Commerce Marketing (DTCM) regulates short-term rentals. Hosts must obtain a license, and the process is relatively straightforward, making Dubai a friendly environment for short-term let owners.


In conclusion, short-term lets present a unique opportunity in the rental market. They can offer higher income potential and flexibility but also come with increased responsibilities and risks. For those considering this avenue, it’s important to understand both sides of the coin, carefully evaluate the potential benefits against the risks, and plan accordingly. With the right approach and due diligence, the world of short-term lets can indeed be a rewarding venture.

Both Dubai and the UK present lucrative opportunities for short-term lets, each with their unique set of advantages. In Dubai, the luxury market, coupled with high tourist and business traveler demand, makes it an attractive location for high-end short-term lets. On the other hand, the UK, with its diverse tourist appeal and various city and rural markets, offers a broad scope for different types of short-term rental properties. As always, understanding the local market, regulations, and demand trends is key to success in any location.

    members of the property ombudsman scheme

    Access Our Range Of Property Deals

    Property Form