Landlord Advice

9 Tips to Increase Short-Term Rental Income Despite Restrictions

Written by Diana Santos

Short-term letting is a lucrative market for property owners. Compared to other letting strategies, it has the highest nightly rate. This means it offers peak rental income potential for property owners.

Although it provides incredible opportunities for portfolio growth, the rest of the housing market doesn’t see shortlets in a positive light. In fact, some people think that it aggravates the low housing supply. Some governments have started putting restrictions to halt the growth of the short-term rental market and give more people a chance to buy the existing housing supply.

What does this mean for property owners like you?

This is what this article is about. You’ll discover the truth about short-term rental restrictions and how you can navigate them in a way that doesn’t compromise your rental income. You’ll also get 9 tips to increase your rental revenue despite all the restrictions imposed on shortlets.

The Truth About Short Let Restrictions

Why do some local governments put pressure on the short-term letting market?

The main issue is the low housing supply. The pandemic aggravated the supply and made it harder for people to get homes to live in. It’s either a property is used for short-term rentals so it wasn’t available for long-term letting or new homes are getting snatched by property investors who plan to rent it out.

This caused locals to start complaining about the many shortlets being marketed on platforms like Airbnb,, etc. With the clamour, governments have started to step in to impose restrictions.

In London, we have the planning permission and the 90-day limit to short-term letting. Barcelona announced that by 2028, they would ban short-term rentals. Dublin, Paris and Amsterdam are also a few of the cities that imposed annual limits to the nights a property can be rented on a short-term basis. Similar reports have been heard in New York and parts of Canada.

All these reports are enough to make short-term rental property owners worry about the future of the market. But the truth is, it would be near impossible to completely shut down the short-term rental market.

Airbnb reports that guests find their properties more affordable than traditional hotels. The location and ability to live like a local were also among the reasons why guests prefer to stay in Airbnb properties compared to hotels.

Given these preferences, governments wouldn’t be too quick to eliminate short-term rentals – especially in areas like London where Airbnb bookings rank high. With the city being one of the most visited in the world, restricting short-term rentals would affect the tourism industry.

Instead of worrying about these restrictions, property owners should focus on finding ways to increase their income potential despite these rules.

9 Tips to Increase Short-Term Rental Income

Despite the restrictions imposed on the short-term rental market in London, it continues to be a popular letting method for property owners. The demand and popularity of the city as a tourist destination continue to drive its growth.

With the right strategies, property owners can thrive and maximise their rental income potential. Here are 9 tips that can help you increase occupancy rates and rental returns from your shortlets.

Keep an eye on the market

The property market is volatile – including the short-term rental market. To stay competitive, you need to monitor the market’s movement. Stay updated on the guest preferences and rental rates. See if the government has imposed new rules so you can adjust your letting strategies accordingly.

Being informed allows you to make smart decisions to increase your rental income.

Stay compliant

With what you know about the current state of the market, you’ll be in a better position to stay compliant. Once a new rule comes out, change your strategy to avoid fines. Limit the number of nights you rent a property out to short-term guests. Or you can get planning permission so you’re exempted from the 90-day limit. 

This will help you avoid potential issues with the local government. As long as you comply with their rules, they won’t have a reason to shut your property down.

The same is true for your financial and tax obligations. Pay your taxes on time and any mortgages associated with the property. Learn about the expenses you can deduct from your rental income to be sure you’re paying the right amount. Get short-term rental insurance so your property is protected in case of accidents.

Use dynamic pricing strategies

One of the great things about short-term rentals is you can change the rental rates based on the season or market demand. Using platforms like Airbnb and gives you access to their pricing tools so you can maximise the income potential of your flat.

While technology has this covered, it’s still a good idea to understand what causes short-term rental properties to rise and fall. Consider factors like the seasons, local events and property features. This allows you to set the right price based on the value of your property. As long as you’re compliant with the rules and you keep an eye on your competitors, you should be able to maximise profit without being too expensive for your target market.

Improve your property

Invest in upgrading or renovating your property. A visually appealing apartment will attract more guests and increase your rental income. The improvements will also increase the value of the property – allowing you to set a higher rental rate.

Even a paint job or new furniture would do wonders for your property. Make sure you take professional photos and update the property’s profile so potential guests can see the new look.

As you improve your property, keep the short-term rental rules in mind. Any improvements should keep your property compliant so as not to cause issues in its ability to take guests in.

Market and advertise to the right people

Your property and its features will appeal to a specific group of guests. This is why it’s important to understand who your market is so you can advertise your property on the right platform.

Airbnb, and VRBO are great letting platforms to use. However, knowing how to market to the right people would allow you to create the right messaging and highlight the right property features that appeal to them. This increases the chances of getting booked.

Promote sustainability

Eco-tourism is a huge deal nowadays. Guests are looking for eco-friendly homes to stay in because it aligns with their commitment to live sustainably.

It doesn’t take much to transform your property into a sustainable home. Implement proper waste management, use eco-friendly amenities and install energy-efficient lights and appliances. Highlight these features and you’ll attract eco-conscious guests. It’ll increase your occupancy rates and your rental income as well.

Be vigilant with maintenance

Regular maintenance prevents issues with the property and keeps your property compliant. By conducting preventive maintenance checks, you can ensure your guests will be safe during their stay.

Schedule routine inspections so small issues won’t lead to major damages. If the smoke or carbon monoxide alarms are faulty, replace them. Electrical wiring and plumbing should also be checked.

Taking care of the property’s condition sets up your guests to have a seamless experience. This would eliminate negative reviews and increase positive ratings.

Offer add-on services

Think of additional services that can improve the guest experience. You can offer meal services, bike or car rentals, guided tours, airport transfers, etc. 

You can also create add-on services that meet the specific needs of your guests like babysitting services and pet boarding.

These will give extra value to your property and serve as a good reason to justify higher rates. This can make your property stand out and make it more memorable for guests. It’ll increase the chances of getting rebookings and positive feedback.

Partner with property experts

Increasing the rental income of shortlets is easier with experience and expertise. This is why partnering with a property management company that specialises in short-term letting will benefit you. These professionals know how to navigate the restrictions imposed on the short-term rental market so it doesn’t compromise your rental income.

Look for property experts like City Relay who handle everything – from marketing and guest communication to compliance and maintenance. Not only will you get more bookings, but they’ll also help you stay compliant when new rules are implemented.

Be Proactive and Increase Your Rental Revenue

The increasing restrictions on short-term rentals should be taken seriously – but it shouldn’t make you feel worried. There are many ways to increase your rental income despite the restrictions. By focusing on improving your property can keeping it compliant, you’ll attract more guests to book a stay. Paying attention to the needs of the guests so you can provide the best experience for them will also increase your chances of getting positive reviews and in effect, higher occupancy rates.

When you work with a reputable property management company like City Relay, you’ll benefit from their years of expertise in maximising short-term rental income. They’ll help you stay proactive so your property remains competitive and compliant with new rules and regulations.

If you want to know more about City Relay’s property management services, contact us. We’d love to discuss how we can maintain and improve your property’s performance.

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