Landlords are facing a tough outlook. Section 21 evictions are on their way out, property taxes are increasing, and ageing housing stock around the country presents costly maintenance problems. Traditional strategies that simply said ‘buy a house, let it out and see the money roll in’ are no longer the safe bets they once were.
To stay ahead, landlords must rethink how they manage risk, unlock flexibility, and diversify their portfolios to maintain profitability. Here are three ways to rethink your property investment strategy as regulations tighten and margins weaken:
Holiday letting: revenue with greater control
Holiday lets can earn in a week what a traditional rental makes in a month. They also offer landlords more control over who stays and for how long.
But it’s not quite so simple. Holiday lets have a high season and low season, unless your property is in a hotspot with year-round appeal, revenue is not stable. Regular turnovers mean a significant operational lift, with cleanings, housekeeping, maintenance, guest communication and check-ins all requiring time and boots on the ground. Marketing isn’t simple either, as guest expectations are high and just a couple of poor reviews can heavily impact booking conversions.
That’s where a professional property management company comes in. Working with a local manager allows landlords to hand off the day-to-day tasks, from guest communication and cleaning to dynamic pricing and legal compliance.
Franchise operators are a good option here, as they have the local expertise of a hands-on manager on the ground alongside strong support in systems and processes, property management technology, and the security of a national network.
Of course, partnering with professional managers or franchises, hiring cleaning services, and paying for technology all have costs associated, and different types of property in different locations will get varying levels of revenue. Look for an operator with great reviews and high quality service — even if they charge a little more, it might be worth it for higher value bookings.
Make sure to do the maths before leaping into holiday letting.
Mid-term lets: flexibility without the hassle
Mid-term rentals are a growing niche, both for traditional landlords looking for flexibility and holiday let hosts facing restrictions. Where short-term rental regulations restrict holiday let activity, mid-term bookings can be a welcome calendar-filler. Bookings can be anywhere from one month to a year, but most often, they’re for fully-furnished rentals and without long-term contracts. They cater to professionals on temporary contracts, remote workers, digital nomads, and families in between homes. For landlords, mid-term lets strike a balance: longer stays and less operational strain than holiday letting, but with fewer legal constraints and higher revenues than traditional tenancies.
Mid-term lets are particularly attractive near businesses and projects with lots of transient workers. Successful mid-term landlords might even start off by approaching large companies nearby and working out an agreement for their contractors.
Getting pricing right is essential. Nightly rates aren’t able to reach the same level as holiday lets, but monthly prices can be higher than standard tenancies. Local market knowledge and data-driven dynamic pricing tools can help strike the right balance. It’s also crucial to target the right channels for marketing. Standard property portals may not capture this segment effectively, so it pays to work with platforms or agencies that specialise in mid-term occupancy or corporate travel accommodation providers.
Portfolio diversification: reducing exposure to risk
We don’t know which part of the sector will be most successful in the future, or if any areas will become unviable thanks to costs and regulation — nor how this will vary from town to town or county to county.
Landlords would be wise to not put all their eggs in one basket. Those who spread their exposure across different property types, geographies, and rental strategies are less likely to be caught out by policy shifts or local downturns. A mix of long-term, mid-term, and short-term lets in different areas can create a more resilient income stream. Some properties might remain ideal for long-term occupancy, especially where tenants are reliable and costs are stable. Others might perform better in the short-let space during peak travel seasons.
Whatever you choose, make sure the data backs up your choices for each property and each investment. Understanding occupancy rates, pricing trends, seasonal variations and local regulations is essential before you make any decisions.
Adapt to survive
Professional landlords need to think about much more than bricks and mortar. Gone are the days when you could sign a contract and not have to think about that property for years at a time.
This is a moment to be proactive, not reactive. The landlords who look beyond traditional models and take a data-driven, flexible approach will be the ones leading the market, and seeing real returns.
Alexander Lyakhotskiy is chief executive and founder of Pass the Keys, a holiday let franchise company operating over 1,700 properties in the UK and Spain