Short-Term vs. Long-Term Rentals: Which Strategy Works Best?

For property owners and investors, one of the biggest decisions is whether to rent out a property short-term or long-term. Each strategy has its own advantages, risks, and income potential. Whether you’re renting an apartment in London, a villa in Dubai, or a holiday home in Portugal, choosing the right rental model can make a big difference to your returns and overall peace of mind.

Why rental strategy matters

Rental income is one of the most consistent ways to generate ROI from property. But without a clear strategy, landlords risk low occupancy, high turnover, or missed income opportunities. By comparing short-term vs. long-term rentals, you can align your property with the right market demand.

Short-term rentals: Key features

• Higher income potential – Daily rates are higher, especially in tourist destinations.
  
  
• Flexibility – Owners can use the property themselves in between bookings.
  
  
• Dynamic pricing – Adjust rates based on season, events, or demand.
  
  
• Challenges – More frequent management, guest turnover, and strict local regulations (e.g., London’s 90-day rule).
  

Long-term rentals: Key features

• Stable income – Fixed monthly rent ensures predictable cash flow.
  
  
• Lower management needs – Fewer tenant changes and less maintenance turnover.
  
  
• Tenant relationships – Build reliability with long-term renters.
  
  
• Challenges – Lower yields compared to short-term, limited flexibility for owner use.
  

How to choose the right model

1. Location – Tourist hubs (Dubai Marina, Lisbon) favour short-term; stable residential areas (London suburbs, Istanbul) favour long-term.
   
   
2. Property Type – Luxury villas often perform better as holiday rentals, while city apartments suit professionals for long-term stays.
   
   
3. Owner Goals – Use the property personally? Choose short-term. Prefer stability? Go long-term.
   
   
4. Regulations – Some cities limit short-term lets, making long-term the safer option.
   

Who benefits from each strategy?

• Short-term rentals – Ideal for investors targeting high yields in tourist-driven markets.
  
  
• Long-term rentals – Perfect for owners seeking passive income with minimal involvement.
  

Benefits of a clear rental strategy

• Maximise occupancy and income.
  
  
• Align returns with lifestyle preferences.
  
  
• Reduce risks by matching property to the right rental model.
  

Why choose Imperia Broker?

At Imperia Broker, we analyse each property and market to recommend the best rental strategy. With expertise across London, Dubai, Portugal, Cyprus, Turkey, and Thailand, we help landlords optimise income while protecting their property.

Get Started Today

Not sure whether to rent short-term or long-term?

Talk to Imperia Broker and discover the rental strategy that works best for your property.