Short Term vs Long Term Rentals | UK Guide

Short-Term Rentals vs Long-Term Rentals: A Guide for UK Landlords

If you're a landlord in the UK, one of the first big decisions you'll make is whether to let your property on a short-term or long-term basis. Each approach has its own advantages, risks, and insurance implications.

Here’s a clear breakdown to help you choose the right rental strategy for your property—and ensure you have the right landlord insurance in place.

What is a Short-Term Rental?

A short-term rental typically means letting your property for days, weeks or a few months at a time. Popular platforms like Airbnb,Booking.com or Vrbo make it easy to market to holidaymakers or business travellers.

Typical characteristics:

• Stay length: 1 night to 6 months
• Furnished and ready to occupy
• Higher turnover of guests
• Flexible pricing (often seasonal)

Advantages:
✅Potential for higher income per night
✅Flexible use of property (you can block dates for yourself)
✅Demand in tourist or city-centre areas

Disadvantages:
❌More management and cleaning between guests
❌Less predictable income
❌Possible planning or licensing restrictions
❌Specialist insurance often required

What is a Long-Term Rental?

A long-term rental usually involves an Assured Shorthold Tenancy (AST) of 6 months or longer. The tenant occupies the property as their main home.

Typical characteristics:

• Stay length: 6–12+ months
• Usually unfurnished or part-furnished
• Stable, consistent tenancy
• Fixed monthly rent

Advantages:
✅Predictable, steady income
✅Less turnover and admin
✅Simpler marketing (via agents or portals)
✅Easier to plan finances

Disadvantages:
❌Lower rent per month compared to short-lets in high-demand areas
❌Potential for problem tenants or arrears
❌Less flexibility to use the property yourself

Insurance Considerations

Whichever approach you choose, standard home insurance usually won’t cover you if you’re letting to tenants or short-stay guests.

✅ Short-Term Rentals:
Short-let landlord insurance or specialist holiday let insurance typically covers:

• Frequent guest turnover
• Accidental or malicious damage
• Public liability (e.g. guest injuries)
• Loss of income (if insured event interrupts bookings)

✅ Long-Term Rentals:
Traditional landlord insurance for AST tenancies usually includes:

• Buildings cover
• Optional contents cover (if furnished)
• Liability cover
• Loss of rent cover (in case of insured damage)
• Optional rent guarantee

At InsureMy, we make it easy to get landlord insurance tailored to your rental strategy—so you’re properly covered, whatever type of tenancy you choose.

Which Should You Choose?

✅ Choose Short-Term Rentals if:

• Your property is in a high-demand tourist or city location
• You want flexibility to use it yourself

• You're comfortable with variable income

✅ Choose Long-Term Rentals if:

• You want reliable monthly income
• You prefer less day-to-day management
• You’re happy to commit to longer tenancies
• Your property suits residential renters

Final Thoughts

Your choice depends on your goals, location and how hands-on you want to be. Whichever you choose, make sure you have the right insurance in place.

At InsureMy, we specialise in helping UK landlords find cover that matches their letting style. Protect your investment, your income—and your peace of mind.