It is one of the most common questions London landlords face when deciding what to do with a property: is Airbnb worth it compared to a traditional long-term tenancy?
The honest answer is that neither option is automatically better. The right choice depends on the property, location, your circumstances, and what you want from your investment. This article breaks down the real comparison so you can make an informed decision.
The basics: how each model works
Long-term letting means renting the property to a tenant for six months or more, usually under an Assured Shorthold Tenancy (AST). The tenant pays a fixed monthly rent and typically handles their own utility bills. You receive regular, predictable income.
Airbnb and short-term letting means letting the property to guests for short stays — anything from a few nights to several weeks. You set a nightly rate, manage bookings through a platform, and handle all changeovers, cleaning, and guest communication. Income varies month to month and depends on occupancy.
Medium-term letting sits between the two — stays of one to six months, often used by corporate guests, relocating professionals, or people between house moves. It tends to offer more stability than short-term without the long-term commitment.
Gross income: Airbnb can earn more, but not always
The main draw of Airbnb is higher nightly rates. A property in a good London location can often charge two to four times its long-term rental equivalent on a per-night basis.
However, gross nightly rate is not the same as net income. To compare properly, you need to account for occupancy rate, management fees, cleaning costs per stay, linen and consumables, void periods between bookings, platform fees, utilities (which the short-let landlord typically covers), and higher maintenance costs from more frequent turnover.
Once all of these are factored in, the net income advantage of Airbnb over long-term letting is much smaller than the headline nightly rate suggests — and in some cases, the long-term let is more profitable, particularly for lower-value properties or locations with weaker short-let demand.
A simplified comparison
| Factor | Long-term letting | Airbnb / short-term |
|---|---|---|
| Monthly income predictability | High | Variable |
| Management effort | Low | High (unless managed) |
| Cleaning costs | Tenant covers | Landlord covers |
| Utility bills | Tenant pays | Landlord pays |
| Void risk | Low (tenancy terms) | Higher (seasonal / gaps) |
| Upside potential | Limited | Higher in good areas |
| 90-night rule | Not applicable | Applies in London |
| Guest damage risk | Moderate | Higher turnover risk |
When Airbnb is likely the better choice
Airbnb tends to make more sense when the property is in a central or high-demand London location with strong year-round guest appeal — areas like Chelsea, Kensington, Westminster, Marylebone, or Notting Hill; the property is well-presented and can achieve premium rates; you want flexibility; you are using a professional Airbnb management service; the property fits within the 90-night rule; and the long-term rental yield in that area is relatively low.
When long-term letting is likely the better choice
Long-term letting tends to make more sense when the property is in a location with weaker short-let demand, you want guaranteed income without occupancy risk, you do not want to manage or pay for cleaning and utilities, you would handle Airbnb operations yourself without management, the 90-night cap limits your earning potential significantly, or your lease, mortgage, or insurance restricts short-term letting.
The medium-term option: often overlooked
For many London landlords, medium-term letting deserves more consideration. Stays of one to six months — whether from corporate relocations, international students, or professionals between homes — can offer higher rates than a standard AST, less guest turnover than short-term Airbnb, more flexibility than a long-term tenancy, and better alignment with the 90-night rule (stays of 90+ days are treated differently).
A Short Let Management approach that blends short-term and medium-term bookings strategically can sometimes outperform either model on its own.
The hidden cost of poor management
One factor many landlords underestimate is the cost of managing Airbnb badly. Poor reviews, slow guest replies, inconsistent cleaning, and pricing errors can significantly reduce occupancy and income.
This is why professional Airbnb management in London often makes the difference between Airbnb being genuinely more profitable and it simply being more work for similar or worse returns. A good management company handles cleaning, linen, guest communication, pricing, and maintenance — turning the operational burden into a hands-off income stream.
The verdict
There is no universal winner. For landlords with well-located, well-presented properties in prime London areas — and access to professional management — Airbnb and short-term letting can genuinely outperform a standard tenancy.
For landlords who want simplicity, predictability, or whose properties are in areas with weaker short-let demand, long-term letting remains a solid and lower-stress option.
The most useful step is to run the numbers for your specific property — not just the gross nightly rate, but the realistic net income after all costs. If you are unsure, a short-let consultancy can help you model both options before committing.
Want to understand what your London property could earn?
Bosmino provides Airbnb management across London and can help you assess whether short-term letting makes sense for your property. We cover Chelsea, Kensington, Belgravia, Notting Hill, South London, and beyond.
Contact Bosmino for a free property management consultation.
Related reading: Airbnb Management in London: Complete Guide for Landlords | The London Airbnb 90-Day Rule Explained