The Ultimate 90-Day Rule Workaround: A Hybrid Rental Model for London Hosts

A 90-day rule workaround is legally possible in London through a hybrid rental model. It combines peak-season short-lets and longer mid-lets. It allows you to stay compliant with London’s heavily regulated rental market while maximising occupancy rates and rental income.

Key Takeaways:

• Short-term rental owners seek a 90-day rule workaround due to stricter enforcement under the National Registration Scheme.
• A hybrid rental model combines the peak-season short-let with longer mid-let stays to maximise property profits while maintaining year-round occupancy.
• A flexible letting strategy will only work if it uses careful contract structuring to avoid triggering accidental tenancy rights.
• Switching between short-lets and mid-lets requires changes in marketing, pricing, housekeeping, and booking strategies.
• Professional property management helps landlords switch between short-, mid-, and long-term letting without compromising profitability and compliance.

The 90-day rule is a legal restriction imposed on rental properties in the Greater London area. It prohibits the use of residential properties as a short-term holiday accommodation for more than 90 nights a year (1 January to 31 December).

Why Are Short-let Owners Looking for a 90-Day Rule Workaround?

The 90-day rule in London is becoming harder to navigate as short-term rentals face stricter enforcement and mandatory registration (through the National Registration Scheme). The latter allows authorities to strictly monitor short-term stays across different platforms, removing loopholes that short-let owners previously used to bypass the restriction.

Established under the Deregulation Act 2015, the 90-day rule was intended to:

• Ensure a sufficient housing supply in London for local communities
• Support the travel industry
• Meet high tourist demand
• Prevent residential areas from becoming uncontrolled hotel zones.

What does this mean for short-term rentals?

It puts short-term rental owners in a constrained position, significantly limiting profitability. Previously, they relied on multi-platform listings to bypass enforcement limits. But that’s no longer possible. The National Registration Scheme brings a centralised property-tracking system that makes it easier to identify non-compliant properties.

Unless short-term rentals obtain planning permission to go beyond the 90-day limit, they risk sitting empty for 275 days a year.

The solution is simple. Short-term rentals should consider more strategic letting models to keep their rental business thriving.

At City Relay, we use a hybrid rental model in which rental properties alternate between short-term bookings and mid-term stays. Our data shows it can maximise rental income, generating up to £6,000 in monthly revenue while ensuring a reliable income stream at an 88% occupancy rate.

Did You Know…

Flexible letting, a strategy that blends short-, mid-, and long-term stays, could lead to occupancy rates of up to 98% in London. See how The Cleveland Arms achieved 98.3% occupancy. 

What Does a Hybrid Rental Model Look Like?

A Hybrid Rental Model, or as City Relay refers to as the Flexible Letting Strategy, divides a rental property’s calendar between high-revenue short-term bookings and steady longer stays. It ensures properties can maximise seasonal demand while remaining compliant and avoiding prolonged vacancies.

This model can be simplified into two phases.

The Peak Season (90 days)

The first phase focuses on London’s peak tourism period, usually between May and August. Nightly rates can reach their highest levels due to summer tourism, major events, school holiday schedules, local festivals, and business travel.

During this phase, short-term rentals can maximise average nightly rates, cleaning fee recovery, and occupancy. This leads to peak revenue potential, especially for properties near tourist hotspots or public transport.

While short-term rentals can spread the 90 days throughout the year, focusing on the peak season allows them to free up the rest of the calendar for the next phase of this hybrid rental model.

The Midterm Pivot (275 days)

Once the 90-day limit is exhausted, the property transitions to mid-term letting. Based on the Explanation Notes of the Deregulation Act 2015, a temporary stay (shortlet) refers to an occupancy by the same person for less than 90 consecutive nights. A stay of more than 90 days by the same occupant is considered a mid-term letting.

This arrangement is popular among:

• International consultants
• Corporate relocators
• Digital nomads
• Film production crews
• Students on temporary placements
• Healthcare professionals

Mid-term rentals offer several advantages to shortlet owners, including lower turnover costs, predictable monthly income, a shorter void period, and a lower risk of wear and tear from frequent turnovers.

Unlike long-term rentals, midlets aren’t covered by the Renters’ Rights Act (RRA), which means owners preserve more control over availability and pricing. And if you target corporate lets, they are exempt from the RRA, which only covers agreements with individuals, not companies.

Some platforms, such as Airbnb, typically consider a month-long booking (28+ days) a mid-term stay and won’t count it toward the 90-day counter. However, it’s important to remember that London authorities won’t think of it that way. If a stay is below 90 days, it will always count.

Why Does a Hybrid Rental Model Work Better?

A hybrid rental model works because it captures the peak summer income while ensuring occupancy the rest of the year. With both standard shortlets and traditional longlets restricted by local regulations, a flexible letting model creates revenue resilience without compromising compliance.

Imagine an Airbnb that performs well during the summer. Once the property reaches the 90-day limit, it keeps you within a compliance trap where you can’t get more bookings lest you risk suspension. Platforms will close your booking calendar until next year. This means your income stops unless you get planning permission.

Then consider a long-term rental that provides income stability but locks you into a flat monthly rate. With the RRA, you can’t even increase rent without going through rent reviews or producing evidence to justify it. It limits flexibility and increases exposure to rolling tenancy regulations.

The Hybrid Solution

A hybrid or flexible solution blends the best of both strategies. You can enjoy premium nightly rates during peak season thanks to short-term rentals. Then you switch to mid-term stays, where you maintain occupancy and enjoy pricing adjustments without the typical RRA restrictions.

But it’s not just the appeal of a higher or consistent revenue. A Hybrid Rental Model brings:

• Income continuity
• Reduced vacancy
• Operational flexibility
• Regulatory compliance

What are the Legal Risks of Flexible Letting?

Flexible letting is only beneficial if you use the right contracts, occupancy structures and compliance procedures. A poorly managed midlet could accidentally trigger tenant rights and expose landlords to legal complications.

There are three things you need to consider to minimise these legal risks.

• Accidental tenancy rights. The RRA promotes a rolling tenancy structure that is open-ended and does not come with a fixed-term agreement. The tenancy cannot end unless a valid reason is provided under Section 8. This means eviction timelines become complicated, and flexibility is reduced.
• Contractual protection. The contract should be clear and specific to mid-term stays. At City Relay, our contract structure clearly defines the length of stay, occupant type, payment structure, and booking purpose. This clearly differentiates it from long-term rental agreements.
• Reduce risk through corporate letting. Rental agreements with registered companies (e.g., relocation agencies, corporate housing providers, production companies) rather than individuals create operational advantages. With occupancy tied to a company, you get a different type of tenancy protection. Flexibility is also preserved while risk exposure is reduced.

How to Switch Between Shortlets and Midlets Smoothly

Successful hybrid rentals require a streamlined operational system that supports both hospitality-style shortlets and longer midlet stays. London landlords will need adaptable pricing strategies, efficient cleaning and maintenance services, expert marketing pivots, and digital tools to maintain profitability and prevent operational disruption.

Here’s how we do it at City Relay.

• Using targeted marketing campaigns for different guests. Marketing to corporate guests, for instance, requires a different approach from that of holiday travellers. Longer corporate stays require work-from-home amenities, fully equipped kitchens, and proximity to public transport. Properties should be highlighted as a “Corporate-ready apartment” or “Executive relocation accommodation” and marketed on the right platforms, such as relocation agencies or flexible letting specialists like City Relay.
• Adjusting cleaning protocols. Shortlets have faster turnovers, requiring frequent cleaning schedules. Midlet stays have a more predictable housekeeping schedule, like weekly or bi-weekly cleaning, linen refreshes, and monthly maintenance checks. The cleaning is more about maintaining property standards than a hard reset intended for new guests.
• Managing utility costs. Unlike long-term rentals, landlords usually shoulder utility bills. But with a lower nightly rate than shortlets, mid-term profits may be compromised if utility payments are not structured properly. City Relay minimises this impact by building utility allowances into the rental rates. Monitoring seasonal consumption, using smart thermostats, and adjusting prices during peak heating months can also help.
• Automating bookings to minimise mistakes. City Relay uses Opago, a proprietary smart platform that monitors short stays to ensure compliance. It prevents accidental nightly booking beyond the restrictions and syncs availability across platforms. This reduces the risk of operational confusion, ensuring you don’t have to worry about getting hefty council fines because of a calendar glitch.

Why the Hybrid Rental Model is Essential for Shortlets

A hybrid rental model is not just an alternative letting strategy. With the greater restrictions imposed on London landlords, including the 90-day rule, it becomes clear that ensuring profitability while maintaining compliance through flexibility is an effective solution. It allows you to stay competitive and financially resilient under the evolving PRS landscape.

With a flexible letting strategy, you can maximise peak-season tourism while maintaining compliance and year-round occupancy – as long as it’s managed properly.

A successful hybrid rental model works if it has:

• Efficient compliance planning
• Property contractual structure
• Dynamic pricing
• Coordinated operations

This is where professional property management plays a key role in helping London landlords pivot. City Relay helps property owners implement a flexible rental strategy through market expertise, digital systems, streamlined operations, in-house housekeeping and maintenance, multi-platform management, and compliance support.

If you want to understand how your property can thrive under a hybrid rental model, now is the best time to discuss with a property expert. Stay ahead of the next seasonal demand.

Get a free rental estimate now.