Choosing how to rent out your property isn’t always straightforward. With long-term, mid-term and short-term lets all offering very different benefits and challenges, it’s important for landlords to understand which option best aligns with their income goals, time commitment and risk appetite.
Whether you want steady, predictable rental income, the flexibility to use your property when you need it, or the opportunity to maximise earnings during peak seasons, each type of tenancy brings something unique to the table.
In this guide, we break down exactly what long-term, mid-term and short-term lets involve, how long they typically last, and the pros and cons of each.
What is a long-term let?
A long-term let is a rental agreement that usually lasts a year onwards. A long-term let means homeowners and letting agents must comply with a comprehensive set of legal obligations. This ensures that the property adheres to specific standards and regulations to keep its tenants safe.
Pros and cons of long-term lets
| Pros | Cons |
| 1. Peace of mind and guaranteed fixed monthly income – long-term let allows a landlord to rent out their property for long periods of time. 2. Stability and predictability of rental income- for many landlords, the stability of long-term rentals is beneficial, especially if they have multiple properties and are paying ongoing mortgages. | 1. Less control over tenants – if the tenants are less than ideal, then the landlord is stuck with them until the lease expires. 2. Rental arrears – if the tenants fall behind in rent arrears and the landlord relies on their rent money to pay their own monthly mortgage, this can create cashflow issues. In extreme cases, there are clauses for grounds of eviction that can be used with the help of a solicitor. But this is not an easy fix. It not only costs the landlord to hire a solicitor, but it also tends to be a long and drawn-out process to remove said tenants. 3. Rental value increase – if an increase in the rental value of properties occurs, a landlord would be unable to take advantage of it swiftly. 4. Wear and tear over time – long-term use of the property’s amenities can result in wear and damage. This inevitably leads to repairs that the landlord is responsible for overseeing. |
What is a short-term let?
A short-term let is a rental agreement that generally is less than six months. They usually book via short let platforms (Airbnb, Booking.com, etc.). In a lot of cases, the occupants or guests can be holiday-makers, tourists, or work-related businesspeople. In short, let’s make a great alternative to a hotel and people snap them up quickly.
Pros and cons of short-term lets
| Pros | Cons |
| 1. Higher rent – short-term lets are charged by night and can yield, on average, 30% higher returns versus a long-term let. Sometimes even more, especially in high season. 2. More flexibility – the landlord has more flexibility with their property as they can choose to use it for themselves when it’s vacant. If a landlord is unlucky enough to have bad tenants, they leave as quickly as they came. | 1. More work – there is more work and effort involved in a short-term let. Having a constant revolving door of guests means that you’ll need to do a lot of cleaning and preparing. Guest check-in needs to be managed and any damages or repairs will need to be quickly fixed. 2. Unexpected vacancies – you might have unexpected vacant periods in between bookings. 3. Bills and utilities – you will be responsible for paying any bills and utilities. |
Mid-term let: the alternative to avoid restrictions?
A mid-term let is an alternative tenancy agreement that lasts anywhere between three to eight months. This is ideal for tenants looking for more stability than short-term rentals but more flexibility than long-term rentals.
Pros and cons of mid-term letting
| Pros | Cons |
| 1. More income compared to long-term lets – with mid-term letting, you can charge more per month than a long-term let, increasing rental income. 2. Greater tenant vetting – mid-term letting tends to attract business travelers, employees relocating, and established homeowners renovating their properties. This allows you to be more selective and discerning with tenants you accept. 3. Lower risk for rent and tenant default – because tenants stay for a pre-agreed period, the risk is fairly minimal for failure to pay rent. This is also true for failure to leave at the end of the term. Easier contract termination – as an “out of season let,” there are fewer formalities when proceeding with terminating a mid-term contract. | 1.Lower overall demand – the only downside to mid-term letting is that there is less demand from tenants. This is due to it being more niche, as the majority opt for a short or long-term let. |
The Optimal Solution: Nestify’s Mixed-Letting Approach
The best way to maximize your rental income is to use a flexible or “hybrid” combination of letting strategies. By partnering with Nestify you’ll get access to the benefits of both short and mid-term letting.
We’ll successfully let your property with a combination of short-term let and mid-term lets. Holiday lets in the high season will bring the biggest yields, while mid-term letting in the low season will help keep your property occupied and earning income. This brings a much-needed peace of mind with longer periods of secure rental income.
Nestify takes care of all the hard work, like furnishing, housekeeping, maintenance, check-in, and check-outs. We handle the preparation and cleaning and quality assurance, ensuring your guests have a memorable stay. Experience all of the benefits by letting Nestify take the reins to manage your property letting needs.