When you own a rental property in London, one of the biggest decisions you’ll face is whether to let it on a short-term basis (days, weeks, or a few months) or as a long-term tenancy. Both strategies have advantages - but when it comes to yields, compliance, and peace of mind, the differences are significant.
At Rocket Property Management, we’ve worked with hundreds of landlords across London to optimise their returns. Here’s how the two models compare - and how to decide which is right for your property.
Income Potential: Flexibility vs Stability
Short Lets (Higher Nightly Rate, More Voids)
Short lets can generate up to 30% higher nightly rates compared to a standard long-term tenancy. This can be especially profitable in high-demand areas or peak seasons.
Case Study: One Rocket landlord earned an extra £2,000 during Christmas (a traditionally slow period) by switching to short-let management instead of leaving their flat empty.
Long Lets (Lower Rate, Consistent Cash Flow)
While long lets typically bring in lower monthly rent compared to short lets, they deliver stable, predictable income with minimal voids. This consistency is especially important if your mortgage repayments depend on steady cash flow.
Rocket’s advice: If your property risks sitting empty (e.g. between refurbishments, during re-location, or off-season), short lets can bridge the gap. For long-term financial planning, however, stability often beats volatility.
Tenant Turnover & Management
Short Lets
Expect frequent tenant turnover - from business travellers to tourists. That means more cleaning, more wear and tear, and a greater need for professional management. Without a reliable short-let manager, it can become a full-time job.
Long Lets
With thorough referencing and proactive rent reviews, long lets provide tenants who stay 12+ months, often much longer. Lower turnover means fewer marketing costs, less admin, and fewer headaches.
Rocket’s advice: Short lets require a hands-on management team like Rocket Stays to make them profitable without adding stress. Long lets suit landlords who value time efficiency and tenant stability.
Compliance & Legal Considerations
London has strict rules around short lets:
- 90-Day Rule: Properties can’t usually be let out short-term for more than 90 nights in a calendar year without planning permission.
- Licensing & Safety: Fire doors, alarms, EPC ratings, and council licensing may still apply.
- Tax Treatment: Short-let income used to have significant tax benefits but from April 2025 it is now treated the same as long lets by HMRC - landlords must plan carefully with their accountant.
For long lets:
- Compliance focuses on landlord licensing, safety checks (gas, EICR), EPC ratings, and tenancy law. With the Renters’ Rights Bill approaching, landlords will also face restrictions on rent in advance and fixed-term contracts.
Rocket’s advice: Compliance mistakes cost money - up to £30,000 in fines for illegal letting practices. Whether short or long lets, landlords should work with an agent who proactively manages legal changes.
Which Strategy Works Best for You?
- Choose Short Lets If:
- Your property is in a high-demand, central London location, where allowed in your block (check with block managers)
- You want to cover void periods between long-term tenants.
- You have a professional management team (Rocket Stays) to handle turnovers.
- Choose Long Lets If:
- You want predictable, stable income with fewer management costs.
- Your mortgage or lifestyle requires consistent cash flow.
- You value long-term tenant relationships and reduced wear and tear.
Rocket’s Final Word
At Rocket Property Management, we don’t believe in one-size-fits-all advice. For some landlords, short lets deliver an unbeatable uplift in yield. For others, long lets provide the security needed to grow their portfolio with confidence.
The key is strategy. Our landlord-first approach means we analyse your property, your financial goals, and your compliance obligations before recommending the right route.
Want to know which strategy will maximise your yield?
Get in touch today for a free portfolio review - and let’s make your property work harder for you.
