A new article in Property Reporter looks at the pros and cons of investing in AirBNB, short-term letting, versus long-term renting. The key points from the article include:

Availability and Demand There are up to eight times as many family homes available on Airbnb than for long-term rentals, indicating a shift in the rental market. However, these numbers are largely influenced by the location of the property. If a property is in a tourist hotspot, it is likely to benefit more from short-term rentals.

Income While short-term rentals can potentially yield higher returns due to demand, especially in tourist hotspots, this income is not guaranteed throughout the year and is dependent on tourist seasons. Long-term rentals, on the other hand, provide a stable, albeit potentially lower, income over an extended period.

Tenant Relationship With long-term rentals, landlords often have a deeper relationship with their tenants. They get the chance to meet prospective tenants during viewings and can check references and credit scores. However, short-term rentals require less interaction with tenants, but may require more hands-on management in terms of property maintenance and preparation for new guests.

Legal Responsibilities Landlords, regardless of the rental type, have a series of responsibilities to maintain the property and provide necessary utilities. For those considering Airbnb and similar platforms, there are additional regulations such as declaring profits over £1,000 annually, and for holiday lets, a change of use planning permission may be required.

Pros and Cons Long-term rentals offer a more secure income and the chance to build a relationship with tenants, while short-term rentals could yield greater financial returns but come with fluctuating demand and the need for more hands-on property management.

Ethical Considerations The article raises ethical concerns about short-term rentals, particularly in areas where homelessness is a significant problem. It cautions landlords about the potential reputational issues of being seen as exploiting the housing crisis.

Overall, the choice between long-term and short-term rentals depends on a landlord’s financial goals, their ability to manage the property, and their willingness to navigate legal and ethical considerations. It’s essential that landlords familiarize themselves with the regulations and their responsibilities, and stay informed about changes in the property market.