What is a short term let?
A short term let is a tenancy contract which usually lasts six months or less – whereas, typically, other contracts will last six months or more. Short term lets have, up until recently, tended to be less common, but can be so beneficial for both landlords and tenants – which is why short term lets are fast becoming a popular way for consumers to live and travel.
As more people continue to work from home and we find ways to work alongside Covid, people naturally want a home-from-home experience when they travel – opting for short term lets complete with comfortable living spaces, cooking facilities and working from home opportunities over standard hotels.
With this increase in demand, it’s now easier than ever to find accommodation whilst living away and travelling. Opting for temporary accommodation, such as Airbnb, over corporate hotels when travelling, means people can work from home whilst also being able to explore new towns and cities. This allows them to enjoy the leisure aspect of travelling while having the convenience and practicality of working from anywhere.
Find out everything you need to know about short-term lets from our helpful guide.
Who would use short-term lets?
Firstly, it’s helpful to understand the type of demand short-term lets provide for landlords. There are a number of reasons why someone may opt for a short-term rental:
- A homely experience – when travelling for work or leisure, many people prefer to stay in a more private and homely environment rather than a hotel. Many Airbnb properties offer a home-away-from-home experience that allows their stay to feel like little bit more luxurious.
- Temporary accommodation – a person may only be living in that location for only a few months due to work commitments or personal reasons. For instance, they may be going through a home renovation, or a divorce.
- House sales – someone also may need to live in a short-term property whilst in the process of purchasing a house (for example, if their own home has already been sold).
- Renovations – someone may use a short-term property whilst they wait for renovations on their home to be complete. If there’s a possibility of being without a bathroom for a month or so, it’s likely most people would jump at the chance of a short-term rental instead!
- Tourists – short-term lets are also useful for tourists who are perhaps visiting for an extended period of time, and can be more financially beneficial renting a short-term let than staying in a hotel.
The benefits of a short-term lets
Short-term lets are beneficial for many renters, as it offers them the flexibility many long-term options cannot offer. But how does a short-term let benefit landlords?
There are many reasons as to why short-term letting may be more beneficial than alternate options. Firstly, you are able to maximise your profits as you can charge more per night than you typically would for a long-term contract. There is also the potential to capitalise on peak times during holiday seasons and events, which would lead to higher profit.
Short-term lets naturally do well when they are in a central city location, surrounded by leisure facilities such as restaurants, bars, clubs and shops. For example, this could be London or commutable areas, such as Kent, East Sussex or Surrey – as the demand is typically extremely high with many people travelling into the city for work commitments.
Short term lets vs long term lets
With a high occupancy rate not being guaranteed, you may be thinking, are short-term lets really worth it? However, in terms of profit alone, you are generally able to make more money with short-term letting, as you are able to charge higher prices per night. If you have many of your nights booked out for weeks or months in advance, short-term letting tends to be more profitable than long-term letting. With short-term lets, it’s also acceptable to increases prices for the property due to seasonal events, or high demand – as this can then become a more lucrative solution through peak seasons.
Of course, there is generally more time and effort involved in short-term letting – with the continuous flow of new tenants, there will likely be more admin, preparation, cleaning and general servicing. However, with Airbnb management services such as SevenLiving, these hassling tasks are taken care of for you – so you can focus on growing your property empire. While long-term letting may offer you a steady income, short-term lets are generally more lucrative and provide a flexible, profitable solution for property owners.
How can SevenLiving help you with your short-term lets?
If you are interested in hosting your property on Airbnb, or another similar property management platform, but you’re concerned about it being too time consuming, this is where SevenLiving steps in. Time-consuming tasks such as managing listings, guest communication, cleaning and changeovers can be easily taken care of with our team of experts on board. We make your Airbnb hosting experience hassle free with our property management services, taking care of all the admin for you. We handle all enquires, and manage your short-term rental admin from application to completion. We also help with other aspects such as a 100% turn-key experiences and providing 24-hour-check-in. To find out more, simply contact our helpful team today.