5th August 2026| 4 min|

Short-Term Lets vs Long-Term Tenancies: Why Landlords should switch?

There has rarely been a more uncertain time for UK landlords deciding between short-term lets and traditional long-term rentals. The Renters’ Rights Act 2025 came into force on 1 May 2026 and has led many landlords to reconsider their position, with some choosing to sell properties altogether.

At the same time, the Furnished Holiday Lettings (FHL) tax regime was abolished in April 2025, removing many of the tax advantages that once made short-term letting particularly attractive.

As a result, landlords can no longer rely on tax benefits alone when making this decision. The choice now comes down to income potential, regulations, management requirements and long-term strategy. This guide sets out why landlords should look to move towards short-term letting and serviced accommodation.

Firstly, before we dive in let’s look at the difference between short and long term. Short-term letting typically refers to when a property is rented out for brief periods, this could be from a few days, weeks or months. Serviced accommodation follows suite but includes a range of amenities.

On the other hand long-term letting refers to when a property is rented out for a period of twelve months or longer based on a fixed agreement.

Things to consider before switching:

Property finance

When considering your options it is important to consider how the property is financed. Often many mortgage brokers will be more skeptical when considering short-term due to its unpredictability.

Local regulation

It is worth checking whether any local authority restrictions apply, this can vary by authority but often includes things like licensing and planning permission.

Time

Whilst long-term provides lower commitment, short-term requires more attention due to guest and turnover management.

Property Running Costs

Here responsibility differs. Short-term letting has an entirely different set of costs, whilst all absorbed by the host and can include household bills, insurance and turnover management costs. Whereas longer term tends to pass on this responsibility to a tenant. It is important to note that most short-let income figures are quoted before expenses so the bigger picture must be considered too.

A note on regulation

In 2026 regulation is becoming an increasingly prominent topic. From both short and long term perspectives new legislation is forcing those to assess their options.

From a short-term perspective regulation is increasing. At some point in 2026 we expect to see the launch of a national registration scheme so local authorities can monitor and oversee these properties. Penalties for non-registration may apply. This is coupled with maximum night restrictions in some areas for example the greater London authority enforced a 90 night restriction allowing hosts to only let the property on a short-term basis for this period within 365 days.

On the other hand longer-term tenancies saw the introduction of the renters rights act earlier this year. This has changed how the process of longer term letting works with landlords no longer able to use a section 21 (no fault) notice and notice periods, rent increases, tenancy structures and tenant rights also affected. Tenants now have greater flexibility to leave properties, while landlords face more restrictions when seeking possession or increasing rent.

Benefits of Short-term letting:

  • 1

    Flexibility – hosts and landlords can utilise the property at their leisure whether this is taking back possession, or utilising the property for an owner stay.

  • 2

    Control – guests vacate at the end of a stay so can carry out inspections, or look to change course at landlord discretion. This reduces risk and means you can stay responsive to market changes.

  • 3

    Higher Earning Potential – the ability to utilise dynamic pricing and local demand to drive revenue and property earnings.

  • 4

    Scaling into an asset – building a serviced accommodation business can provide a second source of income with reviews and repeat guests. A saleable asset in itself.

 

Operational reality

The operational difference between the two models is significant.

Long-term rentals typically involve a one tenant relationship, relatively few void periods and limited day-to-day management.

Short-term letting and serviced accommodation are much more hands-on. They involve guest communications, regular cleaning, pricing management, online reviews, booking platform administration and ongoing coordination throughout the year.

If you’re a UK landlord weighing up the switch and want a candid view of what your specific property could realistically achieve by operating as a serviced accommodation unit, HostUplift’s co-hosting team can run the numbers with you.

The model is designed for landlords who want professional execution and limited involvement in day to day operations without surrendering ownership of their asset.

Book a call today