So, you’re thinking of renting out your property – great move! But before you dive headfirst into Airbnb listings or start drawing up a 12-month tenancy agreement, there’s one big question you need to ask:
Should you go for a holiday let or a long-term let?
Both come with their perks—and a few hidden headaches. Whether you’re looking for stable income or flexibility, this guide will break down the pros and cons of each so you can figure out what’s best for you and your property.
What is a Holiday Let?
Think of a holiday let as a short-term rental, usually for a few days or weeks at a time. Perfect for tourists, staycationers, or weekend getaways. You’ll often find them on platforms like Airbnb or Booking.com.
Profitability: Who Comes Out on Top?
Holiday Lets: High Earnings Potential
In the right location, a holiday let can earn 2–3x what a long-term tenancy brings in monthly.
But it’s not guaranteed. Earnings fluctuate massively by season, local demand, and competition. It’s feast or famine: For a typical two-bedroom property, July might bring in £4,000, but January? You could be lucky to hit £1000.
Real profitability comes down to occupancy rate. A holiday let with 70% occupancy in York, for example, can outperform a long-term let in the same area by a wide margin.
But if your property is in a quieter spot, void periods can eat into profits quickly—especially once you factor in cleaning fees, utilities, guest support, platform charges, and maintenance.
Long-Term Lets: Predictable, Passive Income
Long-term rentals are financially steady. You know what’s coming in each month, and you’ll spend far less time (and money) managing it.
While the monthly income is lower, the costs are also lower—you’re not paying for linen changes, weekly cleans, restocking, or online listing boosts. Tenants cover utilities and council tax, and you can forecast your cash flow more easily.
💡 For portfolio landlords, this predictability is often a big win—especially if you’re leveraging mortgages and need consistent income.
📍 Location, Location… You Know the Drill
📌 Holiday Lets need the right spot
This is crucial. A cute cottage in Holmfirth or a modern flat in Harrogate? Perfect. But try running a holiday let in a commuter suburb with little tourist appeal, and you’ll struggle to keep bookings up—even if the property itself is stunning.
Proximity to attractions, transport links, parking, and dining options all impact demand.
Also worth noting: some councils have started to restrict short-term lets or require planning permission or licenses, especially in areas where locals are being priced out of housing.
📌 Long-Term Lets are more flexible
With a long-term let, you’re not so reliant on location appeal. Tenants prioritise schools, commutes, and affordability. You’ve got a wider audience and more stability, which means even less glamorous areas can still offer solid yields.
🔐 Control & Legal Considerations: What’s Changed?
This is where things start to get serious.
🧳 Holiday Lets = More Control, More Work
You choose when to let, who stays, and what the rules are. Don’t like a guest’s review history? Decline the booking. Need to block off a month for renovations? Go ahead.
But with that control comes much more active management—unless you outsource to an agency, which will cost you.
You also need to stay on top of guest safety compliance (fire regs, insurance, gas/electrical checks), and you’re classed as running a business, not just letting a property.
🏠 Long-Term Lets = Less Control, More Protection
Under current tenancy law—and especially with the Renters (Reform) Bill on the horizon—landlords are set to lose Section 21 ‘no fault’ evictions, making it harder to regain possession of their property without a specific legal reason.
That means once a tenant moves in, you can’t just ask them to leave because you want the property back. You’ll need to follow a legal route, which could take months (and come with court costs if it goes wrong).
Plus, if rent isn’t paid or there are issues with the tenancy, repossession is a slow and increasingly regulated process. It’s not impossible—but it does mean less flexibility and control over your own asset.
🧾 Tax, Mortgages & Red Tape
Let’s talk admin.
📊 Holiday Lets (that qualify as Furnished Holiday Lets)
If you meet the criteria (available for at least 210 days a year, let for at least 105), you could benefit from:
• Capital allowances (on furniture, fittings, etc.)
• Business rates instead of council tax
• Mortgage interest deductions (not available to standard BTLs anymore)
BUT…
From April 2025, the government is abolishing the tax advantages for furnished holiday lets, meaning long-term and short-term properties will be taxed the same. That’s a huge change that could wipe out the profitability gap between the two models.
🧾 Long-Term Lets
They fall under standard buy-to-let tax rules, including:
• Tax on rental income after allowable expenses
• Limited mortgage interest relief
• No capital allowances
They’re more straightforward for lenders and insurers, but with increasing regulation, compliance is more important than ever.
🧠 So… Which One Should You Choose?
✔ Choose a Holiday Let if:
• Your property is in a strong tourist location
• You’re happy to be hands-on (or pay a management fee). At HW Residential Lettings, we can help with your holiday homes day to day requirements
• You want flexibility and personal use of the property
• You’re prepared for seasonal fluctuations and changes in tax rules
✔ Choose a Long-Term Let if:
• You prefer predictable income
• Your property isn’t in a tourist hotspot
• You want less day-to-day involvement
• You’re happy with longer-term tenants and the legal protections that come with it
🎯 Our Advice?
Run the numbers. Factor in your location, your lifestyle, your risk appetite, and your long-term goals. What works brilliantly for one landlord could be a nightmare for another.
And if you’re unsure, that’s where we come in.
At HW Residential Lettings, we’ve helped landlords across Huddersfield, Holmfirth and West Yorkshire decide which model suits their property—and their sanity. Whether you’re dreaming of 5-star reviews or just want steady rent paid on time, we’ll walk you through it, honestly.
📞 Need tailored advice? Drop us a message. We’re always happy to chat.