Cambridge’s thriving tourism, academic, and corporate sectors have driven a surge in demand for high-quality short-term rentals. More landlords are now shifting away from traditional long-term lets and embracing the flexibility and profitability of short-term stays.
With rising rental yields, increased property control, and the ability to capitalize on peak demand, short-term rentals offer a lucrative alternative to conventional tenancy agreements. In this article, we’ll explore why Cambridge landlords are making the switch—and how you can maximize your rental income without the usual hassles.
1. Higher Rental Income Potential
One of the biggest reasons landlords in Cambridge are moving to short-term rentals is the potential for significantly higher rental income.
Comparing Short-Term vs. Long-Term Rental Yields in Cambridge
Long-term rentals provide stable monthly income, but they come with fixed rates and restrictions on price adjustments. In contrast, short-term lets can generate up to 50% more revenue than traditional leases, especially during high-demand periods.
💡 Example: A one-bedroom apartment in central Cambridge may fetch £1,400 per month as a long-term rental. As a short-term let, charging £120 per night with a 75% occupancy rate could yield over £2,700 per month—almost double the income!
Seasonal Demand and Peak Pricing Advantages
Cambridge experiences high seasonal demand, particularly during:✔️ University events and graduations✔️ Summer tourism peaks✔️ Business conferences and corporate stays✔️ Christmas and New Year holidays
Short-term rental pricing can be adjusted dynamically to capitalize on these demand fluctuations, maximizing profitability.
How Flexible Pricing Maximizes Revenue
With platforms like Airbnb, Booking.com, and Vrbo, landlords can set nightly rates based on market trends. Using dynamic pricing tools (such as PriceLabs or Wheelhouse) allows property owners to automatically adjust pricing, ensuring competitive rates and maximizing occupancy.
2. More Control Over Your Property
A common concern for landlords is the wear and tear caused by long-term tenants. Short-term rentals offer greater control and flexibility over property management.
Avoiding Tenant-Related Issues with Flexible Stays
Long-term tenancies come with challenges such as:❌ Non-paying tenants (leading to eviction headaches)❌ Property neglect due to infrequent inspections❌ Tenant disputes over deposits and damages
With short-term stays, landlords retain full control over who stays in their property, reducing the risks associated with difficult tenants.
Regular Inspections and Maintenance Opportunities
Since short-term rentals require frequent cleaning and maintenance, landlords can inspect their properties more often, ensuring they remain in top condition. Unlike long-term lets, where tenants may neglect upkeep, short-term guests expect hotel-quality standards, meaning your property is consistently well-maintained.
Reducing the Risk of Long-Term Tenant Arrears
One of the biggest financial risks for landlords is rent arrears—when long-term tenants fail to pay rent. With short-term rentals, guests pay in advance, eliminating the risk of missed payments or drawn-out eviction processes.
3. Increasing Demand from Tourists & Business Travelers
Cambridge’s strong visitor economy continues to drive demand for quality short-term accommodation.
The Impact of Cambridge’s Tourism & Academic Calendar
With over 8 million visitors annually, Cambridge remains one of the UK’s top tourist destinations. Many visitors prefer the comfort and affordability of short-term rentals over hotels.
Additionally, university events, such as graduations, open days, and research programs, create consistent demand for short-term stays throughout the year.
The Growing Corporate & Contractor Accommodation Market
Beyond tourism, business travelers and corporate guests form a large share of Cambridge’s rental market. With the city’s booming tech industry, Bio Campus, and research hubs, professionals visiting for projects or training often seek short-term rental options over hotels.
💡 Fact: Corporate guests tend to book for extended stays (weeks or months), ensuring consistent occupancy and stable revenue.
How Short-Term Rentals Cater to Diverse Guest Needs
Short-term rentals offer more than just accommodation—they provide:✔️ Fully furnished spaces with kitchen facilities✔️ Flexible booking options for short and extended stays✔️ A more personal, homely experience compared to hotels
This flexibility makes short-term lets an attractive choice for a variety of travelers, boosting occupancy rates year-round.
4. Flexibility to Use Your Property
Unlike long-term rentals, short-term lets allow landlords to retain access to their property whenever needed.
Ability to Block Off Dates for Personal Use
If you occasionally need your property—for family visits, personal stays, or even renovations—you can block off dates on your booking calendar. This flexibility is impossible with long-term tenants locked into fixed leases.
Switching Between Short-Term & Mid-Term Lets as Needed
Short-term rentals offer multiple options for landlords, including:🏡 Nightly & weekly stays for tourists🏢 Corporate lets for business travelers🏘 Mid-term stays (1-6 months) for relocating professionals or visiting academics
This adaptability ensures you can adjust to market trends and seasonal demand while keeping your property consistently occupied.
Adapting to Changing Market Conditions
If regulations around short-term rentals change, landlords can easily pivot back to long-term or mid-term lets without being locked into lengthy tenancy agreements.
5. The Role of a Property Management Company
While short-term rentals offer great rewards, they require active management to ensure high occupancy rates, positive guest experiences, and compliance with local regulations. This is where a professional property management company like Cambridge Stays makes the process seamless.
Handling Guest Communication & Operations
A property management company takes care of:✔️ 24/7 guest inquiries and support✔️ Check-ins and check-outs✔️ Cleaning and maintenance coordination
This ensures a stress-free experience for landlords while maintaining excellent guest reviews.
Optimizing Listings & Marketing on Multiple Platforms
To stay competitive, short-term rental listings must be professionally optimized across platforms like Airbnb, Booking.com, and Expedia. Property managers handle:✔️ High-quality photography and descriptions✔️ Pricing optimization✔️ Multi-channel marketing for maximum exposure
Ensuring Compliance with Local Short-Term Rental Regulations
Regulations around short-term lets can be complex. A property management company ensures compliance with:✔️ Local licensing and legal requirements✔️ Safety regulations (fire, gas, and electrical compliance)✔️ Tax obligations for rental income
Why Now is the Best Time to Consider Short-Term Rentals
With higher rental income, greater flexibility, and growing demand, short-term rentals are becoming the preferred choice for landlords in Cambridge.
By switching from long-term to short-term lets, you can maximize revenue, retain full property control, and attract high-quality guests without the challenges of traditional tenancy agreements.
However, managing a short-term rental successfully requires expertise. That’s where Cambridge Stays comes in.
📞 Contact us today to explore your short-term rental options and discover how stress-free property management can transform your investment!
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