Airbnb vs buy to let: which is better for landlords?

How does the income compare?

A buy to let pays a fixed rent each month. A short let earns nightly, so income goes up and down with the seasons. Over a year, Renzo landlords typically earn 30% to 40% more than they would with a buy to let, without doing any extra work, and we average 80% occupancy across more than 50 properties.

There are more running costs with a short let, like cleaning, linen and our 14% plus VAT fee, so always compare the money you actually keep, not the headline figure. Ask us for a free income projection with local comparables and you can see the numbers for your own property.

Who has more control?

This is where short lets really win. With a buy to let, once the tenant moves in, the property is effectively theirs to live in. Getting it back is slower than ever, which we cover in our Section 21 guide.

With a short let you can block dates for your own use or family visits, and if you want out, the property comes back empty and ready to sell. Most landlords we talk to care about that control more than the extra income.

Which is riskier?

Each has different risks. Buy to let carries arrears, damage you only find at the end of a tenancy, and a slow legal process if things go wrong. Short lets carry quieter months and more wear from more stays.

We reduce the short let risks hard. Every guest is vetted with ID checks and a damage deposit or waiver, damage is charged straight away, and the property is cleaned and checked at least every two weeks with a photo audit after each clean. More on that in what happens if a guest causes damage.

How much effort is each?

Run yourself, a short let is a lot of work. Messages at all hours, cleans, pricing, maintenance. That's why most landlords use a manager. With Renzo, we handle all guest calls, messages, bookings, cleaning, maintenance and pricing, and you get a monthly payment and statement. A fully managed buy to let is similar in effort, so for you the difference is small.

A quick side by side

• Income: buy to let is fixed, short let is variable but typically 30% to 40% higher with Renzo
• Control: buy to let hands it to the tenant, short let keeps it with you
• Getting the property back: buy to let needs notice and possibly court, short let has no tenancy
• Using it yourself: not possible with buy to let, block dates any time with a short let
• Condition checks: occasional inspections versus checks at least every two weeks

Who should stay with buy to let?

If you need exactly the same amount landing in your account every month to cover a tight mortgage, stick with buy to let. Same if your lender, lease or local rules won't allow short lets, or the property is somewhere with very little demand. And if you've got a great long term tenant who pays on time and looks after the place, honestly, I'd keep them.

If you're unsure, start with one property and test it. That's exactly what one of our landlords, John, did. Our guide on whether your property is suitable is a good next read.