For landlords · 6 min read
Short let vs long let: the numbers landlords miss
Short lets advertise higher headline yields, but the cost base is completely different. Published agent commission for short lets runs at 26% plus VAT (31.2% including VAT) against 11–17% plus VAT for long lets, and that commission recurs on every booking cycle rather than once a tenancy. Add cleaning between stays, furnishing, utilities, higher void rates and possible planning or licensing restrictions, and the gross premium erodes quickly. Long lets win on predictability and cost; short lets win only at genuinely high occupancy in strong locations.
Frequently asked questions
Do agents charge more for short lets?
Substantially. Published schedules show short-let commission at 26% plus VAT (31.2% inc VAT), against roughly 11% plus VAT for a standard long let and 17% plus VAT fully managed. Short-let commission also recurs each booking cycle rather than once per tenancy.
Is a short let more profitable than a long let?
Only at high occupancy in a strong location. Higher nightly rates are offset by much higher commission, cleaning between stays, furnishing, all utilities, platform fees and greater void exposure. Long lets are lower gross but far more predictable.
Is there a limit on short letting in London?
Yes. Letting an entire home on a short-term basis in Greater London is limited to 90 nights per calendar year without planning permission. Your lease, mortgage and insurance may impose further restrictions, so check all four.
Who pays the utilities on a short let?
The landlord, in almost every case, along with broadband, council tax in many cases, cleaning, laundry and consumables. On a long let most of those transfer to the tenant, which is a large part of the real cost difference.