The most common question from landlords considering the switch: will I actually earn more? The short answer is yes - typically 40-80% more. But the full picture involves income, risk, time commitment and long-term strategy. This guide compares both models using real 2025 data.
Income comparison: the numbers
Let's compare a typical 2-bedroom apartment in Manchester City Centre:
| Metric | Long-let (AST) | Short-let (managed) | Short-let (self-managed) |
|---|---|---|---|
| Monthly income | £1,100–£1,400 | £2,400–£3,200 | £2,800–£3,800 |
| Annual income | £13,200–£16,800 | £28,800–£38,400 | £33,600–£45,600 |
| Management fees | £0–£100/month | 12–15% + VAT | £0 |
| Net annual (after fees) | £13,200–£16,800 | £24,500–£32,600 | £33,600–£45,600 |
| Time commitment | 2–4 hours/month | 1–2 hours/month | 10–15 hours/week |
Even after management fees (typically 12-15% + VAT), professionally managed short-lets net 65-85% more than traditional AST tenancies. Self-managing maximises income but requires 10-15 hours weekly for guest communication, cleaning coordination, and maintenance.
Risk analysis
Long-let landlords often cite stability as their reason for sticking with ASTs. But the risks are real and often underestimated:
| Risk type | Long-let | Short-let |
|---|---|---|
| Rent arrears | Common - 1 in 8 tenants fall behind | None - guests pre-pay |
| Void periods | 2–6 weeks between tenants common | Managed via dynamic pricing |
| Property damage | Often discovered months later | Caught at next clean (24-48hrs) |
| Eviction costs | £2,000–£5,000+ legal fees | Not applicable |
| Income stability | 12 months guaranteed | Variable but pre-paid |
Short-lets eliminate rent arrears entirely - every stay is pre-paid. Professional management means the property is inspected after every guest, catching issues within 24-48 hours rather than months later.
Hidden costs breakdown
Beyond the headline figures, both models have operational costs:
| Cost type | Long-let (annual) | Short-let managed (annual) | Short-let self-managed (annual) |
|---|---|---|---|
| Management fees | £0–£1,200 | £3,500–£5,200 | £0 |
| Cleaning | £0 (tenant responsibility) | £2,400–£3,600 | £3,000–£4,500 |
| Maintenance | £500–£1,500 | £800–£2,000 | £800–£2,000 |
| Utilities/council tax | £0 (tenant pays) | £1,800–£2,800 | £1,800–£2,800 |
| Platform fees | £0 | £1,200–£2,000 | £1,500–£2,500 |
| Insurance | £150–£250 | £250–£400 | £250–£400 |
| Total annual costs | £650–£2,950 | £9,950–£16,000 | £5,550–£9,700 |
Even accounting for higher operational costs, short-lets typically net £8,000-£15,000 more annually than long-lets for a 2-bedroom Manchester property.
Void periods compared
Void periods are a major differentiator. Between AST tenancies, landlords typically experience 2-6 weeks void (sometimes longer in slow markets). That's £550-£2,100 lost income per void period, plus potential re-letting fees.
Short-lets don't have void periods in the traditional sense - occupancy fluctuates but dynamic pricing fills gaps. Professional managers maintain 75-85% occupancy year-round through multi-platform distribution and rate optimisation.
"I was earning £1,100/month on a long-let with a 4-week void between tenants that cost me £1,100. Truestays has averaged me £2,050 over six months with zero voids. The difference is night and day."
- Sarah K, Portfolio landlord
Property condition
One underappreciated benefit of short-let is property maintenance. AST tenants occupy for 6-12 months with minimal oversight - issues accumulate and are often discovered months after they develop.
Short-lets are cleaned and inspected after every stay (typically 2-4 day intervals). Problems are caught immediately: a leaking appliance, a stain, a broken fixture. Landlords consistently report their properties are better maintained on short-let than during long-term tenancies.
Tax implications
Both models generate taxable income, but the treatment differs:
Long-let - Rental income taxed at your marginal rate. Mortgage interest relief restricted to basic rate (20%). Limited expense claims.
Short-let (FHL qualifying) - If your property meets occupancy thresholds (typically 105+ nights/year available for let, 210+ nights actually let), it may qualify as a Furnished Holiday Let. Benefits include: capital allowances on furniture/equipment, potential business rates relief, and eligibility for certain pension reliefs. Note: FHL regime is being abolished from April 2025 - consult a tax adviser.
Which model suits you?
Choose long-let if: You prioritise minimal involvement over maximum income, your property is in a low-demand area for short-lets, you have mortgage or insurance restrictions preventing short-lets, or you're comfortable with occasional void periods and tenant issues.
Choose short-let if: You want to maximise income (65-85% more typical), your property is in a city centre, transport hub or tourist area, you want your property professionally maintained, you prefer pre-paid bookings over tenant arrears risk, or you're willing to hire professional management for hands-off operation.
Frequently asked questions
How much more do short-lets actually earn after all costs?
After management fees, cleaning, utilities, council tax and platform costs, professionally managed short-lets typically net £8,000-£15,000 more annually than long-lets for a 2-bedroom property in Manchester, Liverpool or similar cities.
Is short-let income stable?
Short-let income varies month-to-month but professional management smooths this through dynamic pricing and multi-platform distribution. Annual income is typically 65-85% higher than long-let, with no void periods or arrears.
What about wear and tear?
Short-lets have more frequent stays but each is professionally cleaned and inspected. Issues are caught within 24-48 hours. Long-lets have less frequent turnover but problems can go unnoticed for months. Most landlords report better property condition on short-let.
Key takeaways
Short-lets earn 40-80% more gross income than long-lets
After costs, short-lets typically net £8k-£15k more annually (2-bed Manchester)
Short-lets eliminate rent arrears risk (all stays pre-paid)
Void periods managed via dynamic pricing vs 2-6 weeks between AST tenants
Property condition better maintained with post-stay inspections
FHL tax benefits available (until April 2025 changes)
Professional management makes short-lets hands-off (1-2 hrs/month)
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