It is undoubtedly one of the first questions that will pop up in your mind when considering how to maximise rental income from the jazzy new property you have just invested in. "Rent it through Airbnb, you'll get more money" - is one of the most common things people will advise you. But before you dive into any decisions, it is worth considering what works best for you, savvy landlord. For example, where your property is located (i.e. holiday destination vs. city spot), the competition and demand, what your use is for it etc. are all amongst things to consider. Here's a short analysis on the pros and cons of short-term and long-term rentals in London.

Short-term letting: 

Pros:

- Higher daily income (for the days during which the property is occupied). Ideal in areas where demand outstrips supply. 

- Flexibility in the case that you want to use the property yourself.

Cons:

- High management fees of up to 20% if you want your property to be in the range of luxury-style serviced flats and you cannot commit the time to this job yourself. 

- Increased maintenance costs to accommodate for constant turnover of occupants / maintaining high standards.

- Stress factor; there will undoubtedly be periods when your property is unoccupied resulting in loss of consistent income. 

- Short-term lets are currently being banned from many London blocks for security reasons so you may find yourself in trouble.

Long-term letting:

Pros:
- Security & stability; you know exactly what you will be getting when signing a long-term lease with a reliable tenant.

Also allows you to calculate your ROI more accurately when taking a buy-to-let mortgage.

Cons:

- The biggest risk of entering a long-term contract on your property, is that your tenant turns out to be a problematic one. Nightmare stories such as tenants not paying the rent or mistreating the property resulting in the need for eviction is definitely not something any landlord would want. 

Our advice? If you can find trusted, long-term tenants for your property, the cons of short-term letting are more considerable than those of long-term letting. Of course, at the end of the day it is your decision on how you can best maximise and utilise your investment.