{"id":2359,"date":"2022-03-14T15:23:15","date_gmt":"2022-03-14T15:23:15","guid":{"rendered":"https:\/\/www.mygetaways.co.uk\/blog\/?p=2359"},"modified":"2025-10-21T13:29:59","modified_gmt":"2025-10-21T12:29:59","slug":"short-term-vs-long-term-lets-which-is-the-best-investment","status":"publish","type":"post","link":"https:\/\/www.mygetaways.co.uk\/blog\/short-term-vs-long-term-lets-which-is-the-best-investment\/","title":{"rendered":"Short-term vs. long-term lets – which is the best investment for landlords?"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

Considering investing in a short-term or long-term let in Brighton & Hove or the wider Sussex area? It\u2019s likely that the burning question on your mind right now is whether to set it up as a short-term holiday let\/serviced accommodation for business travellers or to opt for a long-term let scenario. <\/p>\n\n\n\n

Are we right?<\/em><\/p>\n\n\n\n

Both short-term and long-term lets have their advantages and disadvantages, and when considering both options you\u2019ll need to factor in a few elements, such as stability, profit and costs, and the level of management required.<\/p>\n\n\n\n

There is no right or wrong decision, in fact, the final decision should be based on your personal circumstance and preferences. <\/p>\n\n\n\n

Our My Getaways<\/strong> team are pros when it comes to short-stay accommodation in Brighton and Sussex. We wrote this guide from a landlord or host\u2019s perspective so that you can weigh up the different factors and make the decision\u2026  <\/p>\n\n\n\n

Short let or long let, which is it to be?<\/em><\/p>\n\n\n\n

<\/div>\n\n\n\n

The Pros & Cons of Long-term Rentals<\/h2>\n\n\n\n

A long-term tenancy may be the customary choice for buy-to-let investors but it\u2019s not necessarily the most profitable. So why should you choose a long-term rental?<\/p>\n\n\n\n

Advantages of a long-term rental<\/h3>\n\n\n\n

Steady income:<\/strong> long-term rentals are the safe bet if you want to enjoy a steady flow of income; receiving a guaranteed monthly income for the duration of the long-term rental contract, which is a minimum period of 12 months.<\/p>\n\n\n\n

Stability and security:<\/strong> A long-term rental contract offers stability and security. Landlords don\u2019t have to worry about vacant periods and if you vet and choose your tenants well, they will pay their rent on time and treat your property like their own home.<\/p>\n\n\n\n

Passive income:<\/strong> If you choose to manage the property yourself, a long-term rental is a lot less work than a short-term rental, for which you will be organising check-ins, cleaning and maintenance throughout the season.<\/p>\n\n\n\n

Off-set expenses: <\/strong>A long-term rental allows you to reduce your tax bill by offsetting the expenses of a long term rental. You can offset expenses such as letting agents and legal fees, service charges and wages for cleaners, gardeners, etc. <\/p>\n\n\n\n

<\/div>\n\n\n\n

Disadvantages of a long-term rental<\/h3>\n\n\n\n

Less income:<\/strong> Without doubt, if you are looking for maximum return on your buy-to-let investment, you will not achieve the same rates with a long-term rental, as you will with a short-term rental. Especially if you are working with an experienced short stay management company, such as My Getaways<\/a>.<\/p>\n\n\n\n

Inflexibility:<\/strong> Once you have long-term tenants in your property, you won\u2019t be able to use it yourself, or change your mind if it doesn\u2019t work out. <\/p>\n\n\n\n

Problem tenants:<\/strong> And of course, if you end up with the tenants from hell, you can\u2019t just kick them out, in fact it can take months to evict a tenant who isn\u2019t paying the rent, meanwhile you must continue paying the mortgage and utility bills.<\/p>\n\n\n\n

Late rental payment:<\/strong> Your tenant might sign a contract to pay you on the 1st of every month, but when payments start sliding to the 5th and then the 10th of each month, there isn’t a lot you can do without taking the legal route. Meanwhile, you have to continue paying your mortgage on time.<\/p>\n\n\n\n

Demanding tenants:<\/strong> Problem tenants, late payments, and then there are the demanding tenants. Those who expect you to make changes to your nicely set-up business. They want you to change utility suppliers, they find even the smallest detail that needs repairing or want to change your house decor, wall colour, or perhaps the beds aren\u2019t comfortable enough?!<\/p>\n\n\n\n

Regulations:<\/strong> Finally, the regulations for long-term rentals are more demanding and you\u2019ll need to go through a lot more paperwork and jump through quite a few hoops to get set-up and meet all of the legal requirements of a long-term rental. <\/p>\n\n\n\n

<\/div>\n\n\n\n

The Pros & Cons of Short-term Rentals<\/h2>\n\n\n\n

There\u2019s a lot to be said about opting for a short-term rental in Brighton or Sussex with lots of things to do, places to visit and events happening throughout the year. The region is a popular UK tourist destination and if you manage your short-term rental well, you\u2019ll enjoy a strong return on your investment.<\/p>\n\n\n\n

However, short-term rentals aren\u2019t without their disadvantages, so let\u2019s take a look at some of the pros and cons and why you should choose a short-term rental.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Advantages of a short-term rental<\/h3>\n\n\n\n

Lucrative investment:<\/strong> A short-term rental can achieve a much higher rate than a long-term rental. Prices are set on a nightly or weekly rate and if you market your property well and charge a high occupation rate you can earn around 50% more per annum with a holiday let. Not to be coughed at!<\/p>\n\n\n\n

Flexibility:<\/strong> A short term rental allows much more flexibility compared to a long-term rental. You can block off dates during the year for family and friends, or to undertake maintenance, and you can charge different rates throughout the year depending on the season, to ensure a steady flow of bookings.<\/p>\n\n\n\n

Up-front payment:<\/strong> You have peace of mind that you\u2019ll never have to worry about non or late payments, because your guests pay for their stay upfront!<\/p>\n\n\n\n

Happy guests:<\/strong> Holiday memories are often the happiest memories, and as a holiday let host you are part of those happy memories, which in itself is extremely rewarding. Add on top that your guests leave you a five star review, bringing you more bookings, and your guests won\u2019t be the only ones who will benefit!<\/p>\n\n\n\n

Bad guests stay less time:<\/strong> On the occasion that you host a bad guest, at least you know that they will only be staying a few days or weeks. However, you can eradicate this completely by working with a professional team, such as My Getaways.<\/p>\n\n\n\n

An eye on the property:<\/strong> Short-term lets allow you to keep an eye on the property in between stays, ensuring that the property is always kept up-to-date and properly maintained, ready for the next stay.<\/p>\n\n\n\n

Tax benefits:<\/strong> When you invest in a holiday let you are entitled to claim Capital Allowances on fixtures, fittings and furnishing, or items that are considered to increase the potential of your property as a short-term rental. These are deducted off your pre-tax benefits. <\/p>\n\n\n\n

What\u2019s more, there are further tax advantages to owning a holiday let, such as offsetting losses on your personal income tax, Capital Gains Tax Relief when you sell, being able to claim mortgage interest, a small business rate relief for business rates, tax advantages on your pension, and perhaps one of the most beneficial is the Entrepreneur’s Relief. <\/p>\n\n\n\n

The Entrepeneur\u2019s Relief allows the business owner to pay a flat 10% tax on the chargeable Capital Gains as compared to Capital Gains tax of up to 28% that may be applicable on non FHL (Furnished Holiday Let) properties.<\/p>\n\n\n\n

To find out more about these tax advantages and more when owning a holiday let in Brighton, get in touch with the My Getaways team.<\/a><\/p>\n\n\n\n

<\/div>\n\n\n\n

Disadvantages of a short-term rental<\/h3>\n\n\n\n

On-going management:<\/strong> The biggest disadvantage or, let\u2019s call it a headache of going into the business of short-term rentals, is the management. Unlike a long-term rental, you\u2019ll need to stay constantly on top of the management with advertising, guest enquiries, change overs, cleaning and maintenance. <\/p>\n\n\n\n

The biggest decision you\u2019ll need to make is whether you want to manage it yourself, or bring on board a professional company who will help you earn a hassle free income from your holiday let<\/a>; working with you to optimise income and achieve a fully booked calendar.<\/p>\n\n\n\n

Vacant periods:<\/strong> With a long-term rental you are guaranteed a 12 month stay, but with a holiday let you may experience periods when your property stays vacant which means there is no income. <\/p>\n\n\n\n

To avoid this, you should plan out your marketing during the low season. Think about what might attract a guest out of season?  Activities, sports, events, and how about marketing to business travellers?<\/p>\n\n\n\n

Higher running costs:<\/strong> Your running costs will be higher as you cover regular cleaning, marketing and maintenance costs for your holiday let business and you will also have to pay all utility bills.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Whilst short-term lets can be more demanding and less stable than a long-term rental, if managed professionally, you can unlock a huge potential and turn your buy-to-let investment into a very profitable asset. <\/p>\n","protected":false},"excerpt":{"rendered":"

Considering investing in a short-term or long-term let in Brighton & Hove or the wider Sussex area? It\u2019s likely that the burning question on your mind right now is whether to set it up as a short-term holiday let\/serviced accommodation for business travellers or to opt for a long-term let scenario.  Are we right? Both […]<\/p>\n","protected":false},"author":3,"featured_media":2365,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[82,17,11],"tags":[29,28,30,27],"yoast_head":"\nShort-term vs. long-term lets. Which is the best investment?<\/title>\n<meta name=\"description\" content=\"Short-term and long-term lets have pros and cons. 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