“Should I let my flat short term or long term?” is the question London landlords ask us most. In the short let vs long let debate, the honest answer is that it depends on the property, the building and what you want from it, and that the headline figures you see online rarely tell the whole story.
Short lets usually earn far more gross. They also cost far more to run, they are more seasonal, and in London they sit within rules that long lets do not. What matters is what is left at the end of the year.
Short let vs long let: a worked example from Chelsea
To make the comparison concrete, here is a studio of 382 sq ft in a portered mansion block in Chelsea, SW3.
- The long let uses the average studio rent across SW3, SW5 and SW7: £2,109 a month, according to PropertyData (May 2026).
- The short and serviced let uses our own projection for the same flat, managed as a serviced apartment through a mix of short and medium-term stays.
| Annual figures | Long let | Short and serviced let |
|---|---|---|
| Gross income | £25,300 | £52,940 |
| Booking platform commission (15%) | none | (£7,940) |
| Management fee | (£3,800) at 15% | (£9,000) at 17% |
| Cleaning and laundry | paid by tenant | (£4,800) |
| Utilities and broadband | paid by tenant | (£2,040) |
| Council tax | paid by tenant | (£1,440) |
| Maintenance | (£1,200) | (£1,200) |
| Void allowance and compliance | (£1,400) | included above |
| Net operating income | about £18,900 | about £26,500 |
Both columns are before service charge, ground rent, insurance, mortgage costs and tax, which you pay either way. The long-let fee and allowances are typical figures for illustration, not a quote.
Two things stand out:
- Gross income roughly doubles. That is the number most short-let marketing leads with.
- Net income is about 40% higher, not 100%. Platform commission, cleaning, bills and a higher management fee absorb roughly half the extra revenue.
Forty per cent more net income is still a very significant difference, around £7,600 a year on one studio. But it is a different decision from “double the rent”.
Where the extra costs go
A long-let tenant pays the bills, cleans their own home and stays put. A short-let property is a small hospitality business:
- Platform commission on every booking, typically around 15%.
- Cleaning and laundry after every stay, so the shorter the average stay, the higher the cost.
- Utilities, broadband and council tax, which the owner pays.
- Furnishing and wear. Short-let furniture, linen and kitchenware work harder and need replacing sooner.
- A more intensive management service: pricing, guest communication around the clock, check-ins, reviews and constant quality control.
Short-let income is seasonal
A long let pays the same every month. A short let does not. In the projection above, the flat earns about £9,760 in January to March and around £15,500 in each of the spring and summer quarters, nearly 60% more. October to December sits in between, at about £12,200.
That seasonality is manageable, and well-planned pricing smooths it, but your cash flow needs to allow for a slower first quarter.
The rules are different
The 90-night rule. In Greater London, letting a whole home for stays of fewer than 90 consecutive nights is limited to 90 nights per calendar year unless the property has planning permission for short-term use. Stays of 90 nights or more do not count. A year-round serviced let therefore needs either that permission, or a plan that combines a limited number of short stays with medium-term stays. Councils are enforcing the limit, and a national register of short-term lets is in development.
Leases, mortgages and insurance. Many leases prohibit short lets, and a standard buy-to-let mortgage or landlord policy may not cover them. Check all three first.
Tax. The furnished holiday lettings tax regime was abolished from April 2025. For most individual landlords, short-let income is now taxed in the same way as other rental income, so the old tax advantage of short lets has gone. Take advice on your own position.
Long lets have their own new rules. Since 1 May 2026, the Renters’ Rights Act has made new long-term tenancies periodic and abolished Section 21. Long lets remain the simpler model to run, but ending one now needs a legal ground, so choosing the right tenant matters more than ever.
The risks are different too
| Long let | Short and serviced let | |
|---|---|---|
| Income | Steady, monthly | Higher, but seasonal |
| Main risk | One tenant who stops paying or will not leave | Demand shocks, poor reviews, regulation |
| Wear and tear | Lower | Higher |
| Your involvement | Low with a good manager | Low with a good manager, high without one |
| Flexibility | Low once a tenancy starts | High: you control the calendar |
Which is right for your property?
Short and serviced lets tend to work best for:
- studios and one or two-bedroom flats;
- central, well-connected locations with tourist, corporate and medical demand nearby;
- buildings whose leases allow them;
- owners who want the highest return and are comfortable with income that varies month to month.
Long lets tend to work best for:
- larger family homes and quieter residential areas;
- buildings that prohibit short stays;
- owners who value predictable income above maximum income.
And for many London properties, the best answer is neither on its own. A hybrid letting strategy uses short and medium-term stays where they earn more, especially to turn void periods into income, and long lets where they make more sense.
See the numbers for your own property
Every property is different, and averages only go so far. We can model your property both ways, using real market data and its actual costs, and show you what each strategy would leave you with.
This article is general information, not legal or tax advice.
Sources: PropertyData, average rents for SW3, SW5 and SW7 (May 2026), from MX Lettings’ market analysis · Greater London Authority, Visitor Accommodation in London 2026 · ACCA, Furnished Holiday Lettings tax regime abolished · Gowling WLG, Renters’ Rights Act 2025: 1 May 2026