Short Let vs Long Let Calculator
Compare net income from short-term holiday letting against a long-term tenancy, including the hours of work each option actually takes.
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Short letting almost always produces higher gross revenue and often produces a surprisingly similar net income, because commission, cleaning, higher utilities, voids and management consume the difference. Long letting produces less revenue and almost no work.
The comparison is incomplete without the hours. Dividing the extra income by the time it takes usually produces a figure that settles the question quickly, in one direction or the other.
The comparison
Long let net = rent × 12 × (1 − vacancy) × (1 − management) − maintenance. That is compared against the short let net income, and the difference is divided by the hours the short let takes to give an effective hourly rate for the extra work.
Worked example
A short let netting 12,478 against a long let at 1,300 a month: with 8% vacancy the rent collected is 14,352, management at 10% takes 1,435 and maintenance 1,800, leaving 11,117. The short let is 1,361 ahead — but at five hours a week, that is 260 hours a year, or about 5.24 an hour for the extra work.
What the numbers leave out
Short letting carries more wear, more variable income, greater regulatory risk and a different tax treatment in many countries. Long letting carries tenant risk and less flexibility to use the property yourself. The hourly figure is a useful tiebreaker, not the whole decision.
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Create your free property pageFrequently asked questions
Why is short letting not obviously better?
Because gross revenue is not income. Commission, cleaning, consumables, higher utilities, seasonal voids and management time routinely consume most of the apparent premium, leaving a much smaller gap than the nightly rate suggests.
What about the tax difference?
It varies widely and can favour either option. Some countries treat short-term letting as a trade with different expense and relief rules, others restrict it more heavily. Get local advice before deciding on the strength of the gross figures.
Can I switch between the two?
Usually, though not always. Leases, mortgage conditions, building rules and local licensing may prohibit short letting entirely, and licences can be withdrawn. Check before assuming you can switch if long letting disappoints.
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