Assured Shorthold Tenancy vs Short-Term Lets

What is a Short-Term Let?

While an Assured Shorthold Tenancy can be for as short as 6 months, a Short-Term Let (STL) covers tenancy for anything under 6 months. STLs can range from a whole house or apartment to a single room in a property shared by the landlord or other short-term tenants.

Short-term rentals are more commonly seen as furnished holiday homes, seen in the likes of Airbnb. Since the pandemic and the rise of ‘staycations’, these became the more popular mode of holidaying. Due to the increase in short-term lets, they have become some of the best types of property investments. Still, today in tourist hotspots, holiday-goers or those travelling for certain events prefer a short-term let to a hotel room. 47% of families who have experienced a staycation holiday within the past 3 years are interested in renting a cottage or room for future trips over a hotel.

In terms of a holiday let, tenants of a short-term rental are guests rather than residents. The property is fully furnished and equipped with all living essentials, apart from food. Utility bills and council tax are paid by the homeowner, rather than the tenants. For this reason, alongside cleaning, the costs to maintain a short-term rental can make up 43% of the rental income compared to the 31% of an Assured Shorthold Tenancy. However, even with higher costs, the holiday let industry has generated greater income than traditional buy-to-lets.