Maximising Rental Returns: Short Stay or Long Let

When it comes to making the most of your property investment in Stamford, the way you choose to let it has a huge impact on the returns you’ll see.
A two-bedroom home valued around £265,000 could bring in £900 to £1,200 per month as a traditional long-term rental. That’s a steady income of roughly £10,800 to £14,400 per year, giving a gross yield of 4–5.5%. After management fees and basic costs, most landlords can expect a net return of about 4%. This is the reliable, low-maintenance route — perfect if you want peace of mind and minimal involvement.
But short-term letting through Airbnb or similar platforms is a completely different story. Local market data shows an average nightly rate of £128 and a typical occupancy rate of 57%. That equates to around £26,500 per year in bookings — an impressive 10% gross yield. Even after accounting for cleaning, utilities, and management fees, you’re still looking at a net return of 6.7–7.5%. That’s a significant uplift compared to the long-term model.
Of course, short-term letting isn’t for everyone. It requires more hands-on involvement, from guest turnover to marketing, unless you use a dedicated management service. But for the right property in Stamford, it can unlock a level of return that simply isn’t possible through a standard tenancy.
If you’re weighing up your options, it’s worth considering not only the rental figures, but also how the design of the property could support your chosen approach. Some layouts lend themselves to long-term living, while others are better suited to short-term stays where flexibility and ease of use are key.
Considering a conversion project?
We’re currently working with clients who are exploring how to adapt a commercial building for residential use, and one of their key questions is exactly this: would it work better as a long-term let, or as short-term accommodation? By looking at both the design potential and the financial implications side by side, we can help property owners make informed decisions that give them flexibility and confidence.
If you’re thinking about a project of your own, we’d be happy to share our insights and explore the options with you.