Short-Term Lets vs. Long-Term Rentals: What’s More Profitable in 2025?

Details: Published: 10 April 2025; Hits: 45

Short-Term Lets vs. Long-Term Rentals: What’s More Profitable in 2025?

In 2025, with changes to the UK rental market and increased demand for flexible housing solutions, landlords across Harrow, Uxbridge, and Hillingdon are reconsidering their investment strategies. A key question for property investors is: are short-term lets more profitable than long-term rentals? In this blog, we explore the pros and cons of both options and help you decide what’s best for your property portfolio.

What Is a Short-Term Let?

Short-term lets—also known as holiday lets or serviced accommodation—refer to properties rented out for a few days or weeks at a time. These are typically listed on platforms like Airbnb or Booking.com and appeal to tourists, business travellers, and people in need of temporary accommodation.

What Is a Long-Term Rental?

Long-term rentals are traditional assured shorthold tenancies (ASTs), where tenants commit to staying in the property for six months or longer. These agreements offer more stability and consistent rental income.

Short-Term Lets in Harrow, Uxbridge, and Hillingdon

In areas like Harrow, Uxbridge, and Hillingdon, short-term lets have seen a rise in popularity due to excellent transport links to Central London and Heathrow Airport. These areas attract professionals, students, and families relocating, making short-term stays highly desirable.

Benefits of Short-Term Lets

Higher nightly rates compared to long-term rent
Flexibility to use the property personally when not let
Greater demand during peak seasons and events

Challenges of Short-Term Lets

Increased management costs for cleaning, bookings, and turnover
Potential planning restrictions or licensing requirements
Income may be less predictable due to seasonal fluctuations

Long-Term Rentals in Harrow, Uxbridge, and Hillingdon

Long-term rentals remain a reliable choice for landlords who prefer consistent cash flow and fewer management responsibilities. These areas have high demand from professionals, families, and students seeking well-maintained homes with proximity to good schools, universities, and amenities.

Benefits of Long-Term Rentals

Stable monthly income
Lower management and maintenance costs
Less regulatory scrutiny than short-term lets

Challenges of Long-Term Rentals

Less flexibility in using the property
Potential delays in recovering possession due to changes in eviction laws
Risk of rent arrears or property damage over time

Which Option Is More Profitable in 2025?

The profitability of short-term vs. long-term letting depends on several factors:

Location: Properties near transport hubs or tourist attractions in Harrow, Uxbridge, and Hillingdon can command higher short-term rents.
Property Type and Size: One-bedroom flats might perform better as short-term lets, while larger family homes may suit long-term tenants.
Local Regulation: Keep in mind local authority rules. Some councils may require planning permission for short-term lets or impose 90-day limits.
Time and Management: If you prefer a hands-off approach, long-term rentals are generally easier to manage.

How Tenancy Managers Can Help

At Tenancy Managers, we help landlords in Harrow, Uxbridge, and Hillingdon make informed decisions about their rental strategy. Whether you're considering switching to a short-term let model or sticking with long-term tenancies, our expert team can advise on: