The question of whether to switch from a long-term let to a short-term let comes down to income. Not strategy, not flexibility, not guest experience - income. Do the numbers work?

For Derby landlords in 2026, we can answer this with real data. Here's a direct comparison using realistic figures for a typical Derby two-bedroom property - the most common property type in our portfolio and across the Derby short-let market.

The baseline: long-term letting income in Derby

For a two-bedroom property in Derby in 2026, a long-term tenancy at market rate would generate approximately £850-£1,000 per month gross rent.

From this, the landlord typically deducts: - Letting agent fee: 8-12% of rent (£70-£120/month) - Maintenance and repairs: variable, typically £50-£150/month averaged over the year - Insurance, safety certificates, occasional voids

Net income to the owner: approximately £700-£900 per month for a well-managed, consistently tenanted property.

This is predictable, requires minimal ongoing involvement, and represents a known quantity. The risk is tenant issues, voids and the upcoming regulatory pressure from the Renters' Reform Act - but for many landlords, the simplicity justifies the lower return.

Short-term letting income: the realistic case

For the same two-bedroom Derby property managed as a short-let in 2026, realistic performance figures look like this:

Occupancy: 80-90% (a well-managed property in a good Derby location) Average daily rate: £85-£110/night (including dynamic pricing) Average monthly gross income: £1,800-£2,500

From this, deduct: - Management fee: typically 15-20% of gross revenue (£270-£500/month) - Cleaning costs: approximately £30-£50 per changeover, depending on property size and frequency - Utilities (usually included in STR but not LTL): £100-£200/month - Platform fees: approximately 3% on Airbnb host side - Maintenance and minor consumables: £50-£100/month

Net income to the owner: approximately £1,100-£1,600 per month for a professionally managed, high-occupancy property.

This is the honest figure. Not the gross revenue landlords sometimes cite, not the best-case-scenario projection - but the realistic net after all costs.

The gap: what the switch actually means

Comparing the two models on net income:

Long-term let: £700-£900/month net Short-term let (professionally managed): £1,100-£1,600/month net

The gap - £200-£700/month - is real, but it's not guaranteed. It depends heavily on:

Location: Derby properties near Pride Park, Royal Derby Hospital and the A38/A52 corridors achieve the upper end. Properties without clear contractor or corporate demand drivers may achieve less.

Property presentation: Short-lets are judged on presentation in a way long-term lets aren't. An unloved property that's acceptable to a long-term tenant will perform poorly as a short-let.

Management quality: Dynamic pricing alone - adjusting rates daily based on demand signals - is responsible for a significant portion of the income advantage. A flat-rate short-let is significantly less competitive.

When the switch doesn't make sense

Short-term letting isn't the right answer for every Derby landlord or every Derby property. We're honest about this.

If your property is in an area without meaningful contractor, corporate or leisure demand drivers, the occupancy required to outperform a long-term let may be difficult to achieve.

If your property needs significant work to meet a hospitality standard - not just habitability, but consistent quality - the upfront investment may not be recouped quickly enough.

If you want genuine hands-off income - not the managed version of hands-off, but truly no involvement - a long-term tenancy through a reputable letting agent may suit you better.

We tell prospective landlords this upfront. A property that isn't well-positioned for short-term letting won't perform, and we're not interested in managing a property that won't perform for the owner.

The regulatory context for 2026

One factor shifting the comparison in favour of short-term letting in 2026 is the regulatory environment for long-term landlords.

The Renters' Reform Act - and its successor legislation - has significantly strengthened tenant rights, restricted landlord ability to remove tenants on no-fault grounds, and increased the administrative burden on long-term landlords. While the full impact is still working through the system, many Derby landlords are finding long-term letting materially more complex and risky than it was five years ago.

Short-term letting operates under a different regulatory framework. It has its own compliance requirements - licensing in some areas, fire safety, gas and electrical safety - but it doesn't carry the same tenant rights exposure. A guest who causes damage or fails to leave is an operational issue, not a legal process that takes months to resolve.

This doesn't make short-term letting the default answer for every landlord. But it's a genuine factor in the 2026 comparison that wasn't part of the conversation three years ago.