Cambridge’s booming property market has long been a hotspot for landlords, but with rising rental demand and changing regulations, many property owners are now shifting towards short-term rentals instead of traditional long-term tenancies.
With platforms like Airbnb and Booking.com, landlords can maximize rental income, enjoy greater flexibility, and reduce financial risks compared to conventional buy-to-let investments. This guide explores why short-term rentals in Cambridge offer a more profitable and hassle-free alternative to long-term tenancies.
1. Higher Rental Income Potential
The Challenge: Maximizing Rental Returns in Cambridge
Traditional long-term tenancies lock landlords into fixed rental rates, often below market potential.
The Solution: Short-Term Rentals Earn More
✅ Higher Nightly Rates vs. Monthly Rents
A one-bedroom apartment in central Cambridge typically rents for £1,400–£1,800 per month on a long-term tenancy.
The same property can generate £100–£150 per night on Airbnb, bringing in £3,000–£4,500 per month in peak seasons.
✅ Flexibility in Pricing
Unlike traditional rentals, short-term lets allow dynamic pricing adjustments based on demand.
Peak season events, such as Cambridge University graduations and major business conferences, allow landlords to charge premium rates.
✅ Case Study: Real-Life Example from CambridgeA landlord renting a 2-bedroom apartment in the city centre:
Long-term rental income: £2,200 per month
Short-term rental income: £4,500 per month during peak season and £3,200 per month on average
Annual earnings increase: Up to 50% more revenue with short-term lets
2. Better Cash Flow & Immediate Returns
The Challenge: Managing Cash Flow and Rental Arrears
Long-term tenants pay monthly, and landlords face risks of late or missed payments.
The Solution: More Frequent Payments & No Rent Arrears
✅ Short-Term Let Payouts Are More Frequent
Airbnb and Booking.com pay hosts after each guest checks in, ensuring consistent cash flow.
No waiting for a month-end rent cycle or dealing with tenant payment delays.
✅ No Risk of Rent Arrears
Traditional tenancies carry the risk of unpaid rent and legal eviction processes.
Short-term lets operate on prepaid bookings, so landlords always get paid upfront.
✅ Dynamic Pricing Maximizes Earnings
AI-powered tools like PriceLabs and Beyond Pricing help landlords optimize nightly rates based on:
✔ Demand trends
✔ Local events
✔ Competitor pricing
3. Tax Advantages & Financial Benefits
The Challenge: Tax Burdens on Traditional Buy-to-Let Properties
Landlords with long-term tenancies face higher tax obligations, particularly after Section 24 mortgage interest restrictions.
The Solution: Short-Term Rentals Offer Greater Tax Relief
✅ Furnished Holiday Let (FHL) Tax Benefits
Short-term rentals that qualify as Furnished Holiday Lets (FHLs) benefit from:
✔ Mortgage interest tax relief (not available for long-term rentals)
✔ Capital allowances on furnishings and appliances
✔ Business tax treatment (reducing overall liability)
✅ No Section 24 Restrictions
Unlike buy-to-let landlords, FHL owners can deduct 100% of mortgage interest from taxable income.
✅ Deductions for Operating Expenses
Costs related to cleaning, property management, marketing, and maintenance are fully tax-deductible, reducing taxable income.
4. Less Wear & Tear Compared to Long-Term Tenants
The Challenge: Property Maintenance & Damage Risks
Long-term tenants use properties heavily, leading to greater wear and tear over time.
The Solution: Short-Term Rentals Have Proactive Maintenance
✅ Frequent Inspections Keep Properties in Better Condition
With regular guest turnovers, short-term rentals undergo frequent cleaning and maintenance checks.
Any minor issues (e.g., leaks, appliance faults) are fixed immediately, preventing long-term damage.
✅ Guest vs. Tenant Mindset
Short-term guests stay for a few days or weeks and typically treat the property better.
Long-term tenants tend to personalize the space, sometimes leading to more damage.
✅ Professional Cleaning Ensures Upkeep
Unlike traditional tenancies where cleaning is a tenant’s responsibility, short-term rentals have scheduled professional cleaning, keeping the property in top condition year-round.
5. Flexibility & Control Over Your Property
The Challenge: Lack of Control in Long-Term Tenancies
Traditional tenancies lock landlords into contracts, making it difficult to regain property control.
The Solution: More Freedom with Short-Term Lets
✅ No Risk of Problem Tenants or Eviction Hassles
Long-term tenants who stop paying rent can take months to evict under UK tenancy laws.
With short-term lets, each booking is temporary, eliminating the risk of problematic tenants.
✅ Ability to Use Your Property When Needed
Owners can block out dates for personal use—ideal for landlords who occasionally stay in Cambridge.
✅ Option to Switch Back to Long-Term Let If Needed
If market conditions change, landlords can easily transition back to a long-term rental strategy.
6. Meeting the Demand: Why Cambridge Is Ideal for Short-Term Rentals
The Challenge: Finding Consistent Tenants Year-Round
Unlike traditional renters, short-term guests travel to Cambridge year-round.
The Solution: Strong Demand for Short-Term Rentals
✅ Tourism Hotspot
Visitors flock to King’s College, the River Cam, and historic landmarks.
✅ Academic & Business Travelers
Cambridge’s universities, biotech firms, and tech companies bring in thousands of visiting professionals each year.
✅ Relocation Market
Families and professionals moving to Cambridge often need temporary housing before finding permanent accommodation.
7. Common Concerns About Short-Term Rentals & How to Overcome Them
💬 "Is it more work than a long-term rental?"✅ Solution: Hire a full-service Airbnb management company to handle everything.
💬 "What about void periods?"✅ Solution: Use dynamic pricing and strategic marketing to maintain high occupancy.
💬 "Are there legal restrictions?"✅ Solution: Work with experts who ensure full compliance with Cambridge regulations.
Why Choose Cambridge Stays for Short-Term Rental Management?
At Cambridge Stays, we specialize in maximizing landlord earnings through expert Airbnb management.
Why Partner with Us?
✔ Best-rated short-term rental management in Cambridge✔ Optimized pricing strategies to boost revenue✔ Hassle-free service—from guest check-ins to property maintenance✔ Proven success in increasing landlord profits
Short-Term Rentals = More Profit, More Flexibility
With higher rental income, tax benefits, and greater property control, short-term rentals are the smarter choice for Cambridge landlords.
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