At Adrian Hassett Auctioneers we believe that choosing between short term letting and long term renting is less about preference and more about strategy. In 2026, both models can perform well, but they suit very different types of investors.
Short term letting offers the potential for higher gross income. In tourist areas or cities with strong visitor demand, nightly or weekly rates can outperform traditional rents. This flexibility allows landlords to adjust pricing in response to demand. However, income volatility is a real issue. Seasonal fluctuations, regulatory restrictions and changing tourism patterns can all impact occupancy.
There is also a management burden. Short term lets require frequent tenant turnover, cleaning, marketing and communication. Even when outsourced, these services reduce net return.
Long term renting provides stability. Consistent monthly income, longer tenancies and lower management intensity make it attractive for investors seeking predictable returns. It also aligns more closely with traditional lending structures and regulatory frameworks.
That said, long term renting is not without challenges. Rent caps, tenant protections and compliance obligations must be carefully managed. Once a tenancy is in place, flexibility is limited.
The key mistake many investors make is focusing purely on headline income. Higher gross returns in short term letting can be offset by higher costs, while lower long term rents may deliver stronger net income over time.
Location is critical. Short term letting works best in high demand tourist or urban areas. Long term renting tends to perform more consistently in residential markets with strong employment.
There is no universal answer. Investors should assess their appetite for involvement, tolerance for variability and long term objectives before choosing a model.
If you would like to discuss buying or selling a property, contact us on 0871303206 or email sales@adrianhassett.com or visit adrianhassett.com.
Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.
