Short-term rentals, also known as short lets, have become an increasingly lucrative option for UK property investors—especially in 2025. With rising demand from tourists, business travellers, and digital nomads, landlords are discovering that letting properties for days or weeks rather than months can deliver higher returns on investment (ROI).
But how can you maximise ROI with short lets in the UK? Here's your ultimate guide.
What Are Short Lets?
Short lets typically refer to rental periods of less than 6 months. This can include:
- Holiday lets (Airbnb, Vrbo)
- Business travel stays
- Temporary relocation housing
- Student or medical staff accommodation
Short lets offer greater flexibility—and potentially higher income per night—compared to traditional long-term tenancies.
Why Choose Short Lets in 2025?
- Tourism Rebound: Post-pandemic travel has bounced back, with record bookings across UK cities and countryside destinations.
- Remote Workers: Digital nomads and hybrid workers seek short-term accommodation in new locations.
- Higher Rental Income: Short lets often yield 30–50% more income than long-term rentals (location-dependent).
- Flexibility: You can use the property yourself in between bookings or pivot to long-term rental when needed.
Strategies to Maximise ROI with Short Lets
1. Choose the Right Location
Not all locations are equally profitable. Focus on areas with:
- Strong tourism (e.g. London, Edinburgh, Bath, York)
- Major events or festivals
- Proximity to hospitals, universities, or transport hubs
- Underserved accommodation markets
Pro tip: Consider commuter towns and coastal areas with growing short-let demand.
2. Invest in High-Quality Furnishing
Presentation is everything. Guests are paying a premium, so your property must look and feel like a boutique hotel:
- Stylish and neutral decor
- Comfortable bedding and mattresses
- Fully equipped kitchen
- Fast Wi-Fi and smart TVs
- Welcome touches (coffee, toiletries, guidebook)
The better the experience, the better the reviews — and the more you can charge.
3. Professional Photography and Listing Optimisation
First impressions matter. Invest in professional photography and compelling copywriting for your listings on Airbnb, Booking.com, or other platforms.
Include:
- Key amenities
- Local attractions
- Transport links
- Guest reviews (when available)
A strong listing boosts bookings and allows you to increase your nightly rates.
4. Streamline Operations
High turnover means more management. To maintain strong ROI:
- Use smart locks for easy check-in/out
- Hire a reliable cleaning service
- Automate communication with guests
- Use short-let management software or partner with a letting agency
The more efficient your operations, the less you’ll spend on stress and overhead.
5. Price Strategically
Use dynamic pricing tools like Beyond, Wheelhouse, or Airbnb’s Smart Pricing to automatically adjust your rates based on:
- Season
- Local events
- Demand trends
This ensures you’re not leaving money on the table during peak periods.
6. Track ROI and Adjust
Regularly measure your ROI using:
- Occupancy rate
- Average nightly rate (ANR)
- Monthly gross revenue
- Net profit after management/cleaning/maintenance
Reinvest in upgrades if reviews suggest improvements and adjust strategy for off-peak periods (e.g. offer discounts for longer stays).
Things to Watch Out For
1. Local Regulations
Many UK cities are tightening rules on short lets. For example:
- London limits short-term rentals to 90 nights per year (without planning permission)
- Edinburgh has licensing requirements for short-let operators
- Some boroughs may require change-of-use permission
Always check your local council’s regulations before launching.
2. Tax Considerations
Short lets are treated differently for tax purposes. If it qualifies as a Furnished Holiday Let (FHL), you may benefit from:
- Capital allowances
- Mortgage interest relief
- Business rate relief
But you’ll need to meet specific occupancy and availability rules. Consult a tax advisor to stay compliant and maximise deductions.
Conclusion: Is It Worth It?
Short lets in the UK can deliver impressive ROI, especially when managed professionally and located strategically. With the right approach, property owners can earn significantly more than traditional buy-to-let—while retaining flexibility and control.
Ready to Explore Short Let Investment?
At Nectar Estates, we help landlords and investors identify high-yield short-let opportunities, handle property setup, and offer ongoing management solutions to maximise income.
📞 Get in touch today to unlock the full potential of your property in the UK’s short-let market.
