Find out why long-term lets offer stability and reliability for landlords, compared to the uncertainties of short-term rentals.
Feeling torn between hopping on the short-term rental rollercoaster or sticking to the reliability of long-term letting?
Both options have their merits and considerations, each catering to a different set of circumstances and goals. However, when it comes to long-term lets, the benefits often outweigh the short-term gains.
Keep reading to uncover five reasons why long-term renting is the smart choice, with OpenRent here to support you every step of the way.
- Long-term tenancies make more money, more consistently
- The private rented sector has a steadier legal ground
- You will come across more reliable tenants
- Your tenancies will benefit from better risk mitigation
- In the dance of changing times, long-term rentals lead with a adaptability
More than a million properties have been let on OpenRent – why not yours too?
Explore Our Packages1. Long-term tenancies make more money, more consistently
Based on data from short-term rental tracking sites, in London – Britain’s busiest tourist destination – even the most active hosts with a single property make less revenue per year than the average long-term rent in London.
And that’s without factoring in any management or cleaning expenses. For example, a leading holiday lets platform tags on a hefty 18% service charge per booking!
These costs can quickly add up, especially since occupancy tends to hover below 50% for most of the year.
Long-term lets not only boast higher profitability but also offer extra stability. Tenants commit to longer leases – usually lasting a minimum of six months – resulting in a reliable and consistent income stream for our landlords.
Plus, if you’re worried about tenants falling behind on rent, you can rely on rent guarantee insurance to cover arrears as well as legal costs if eviction becomes necessary.
2. The private rented sector has a steadier legal ground
Short-term let licensing schemes are in full swing across most of the UK, with England gearing up for a registration scheme under the Levelling Up and Regeneration Act 2023.
These changes can make short-term let landlords feel burdened with less flexibility, increased costs, and compliance hurdles. Besides, there’s an existing layer of complexity when acquiring mortgages, head leases or even building insurance for this type of let.
Of course, you can argue that the rental sector is currently juggling with the Renters (Reform) Bill. But, keep in mind that the Bill may significantly change or get scrapped altogether, especially as the upcoming general election adds an extra layer of uncertainty.
With our regularly updated tenancy agreements, you can rest assured that you’ll remain compliant with the latest laws and regulations without lifting a finger.
This way you can focus on what matters most – managing your property effectively and efficiently.
You might also be interested in…
- All You Need to Know About Right to Rent Checks
- A Guide to Tax Deductible Costs for Your Landlord Tax Return
- When Will Section 21 Evictions Be Scrapped?
- How to Serve a Section 21 Notice to Tenants
- What’s a Good ROI for a Buy to Let Property in the UK?
3. You will come across more reliable tenants
Building strong and positive relationships with tenants is way easier with long-term lets.
Our user-friendly screening tools empower you to select tenants committed to longer stays, fostering reliability and compatibility with your property.
Moreover, our automated rent collection service and straightforward issue reporting system make running your long-term lets easier, saving you time and effort.
On the other hand, frequent changes in guests in short-term lets can result in greater wear and tear, conflicts with neighbours, and even instances of anti-social behaviour. In the end, these factors may eat into your profits and add undue stress.
If you need a bit more convincing about the benefits of long-term lets, hop over to our blog for the full story. There, you’ll find two more reasons why they outshine the short-term rental craze.
4. Your tenancies will benefit from better risk mitigation
As a landlord, protecting your investment and ensuring a smooth rental experience is crucial, meaning having access to comprehensive risk mitigation tools is essential.
When it comes to finding tenants, you’ll find out our screening process is thorough. Not only can you ask specific questions as we previously mentioned, but you can also conduct detailed referencing checks on potential tenants and their guarantors.
In contrast, short-term rental platforms often lack stringent screening processes, which could leave landlords vulnerable to guests with undisclosed backgrounds or questionable intentions.
If you’re already renting out your property, but desire an extra layer of protection, consider landlord insurance. It not only protects your property but also covers your possessions, providing added security.
Our premium tenancy creation service covers referencing, contract signing, money handling, and more – all for just £69.
Discover Rent Now5. In the dance of changing times, long-term rentals lead with a adaptability
In the last couple of years, the rental market has undergone significant changes, driven by factors like the Covid-19 pandemic and increasing competitiveness.
OpenRent has evolved alongside these changes, offering solutions like virtual viewings as well as swift adaptations to new laws and regulations, helping you to navigate uncertainties confidently.
Even finer details matter, such as using our AI-powered property description generator and robust messaging system, saving you valuable time in listing optimisation or dealing with too many tenant enquiries.
On the other hand, the fixed booking periods of short-term lets can limit landlords’ ability to respond promptly to market shifts or new regulations, creating a potential risk of missed opportunities or non-compliance.
