Investing in Short-Term Lets: A Lucrative Opportunity

If you’re considering investing in property, short-term lets could offer you a fantastic return on investment. With the rising demand for flexible, short-stay accommodation across London, especially in rapidly developing areas like Canning Town, this type of investment is becoming increasingly popular.

Let’s break down why short-term lets can be a smart move, using a property we currently have for sale as an example.

The Property: 3-Bedroom Terraced House in Canning Town

Located in the heart of Newham, this 3-bedroom terraced house on Tinto Road offers an exceptional opportunity for investors. Priced OIEO £550,000, this beautifully refurbished property is ideal for both families and professionals. With excellent transport links to Canary Wharf, London Bridge, and other major locations, this property is perfectly positioned to attract a steady stream of short-term tenants.

Why Short-Lets?

Short-term lets can provide a significantly higher return than traditional long-term rentals. They’re perfect for tourists, business travellers, or families needing temporary housing. Here are a few reasons why short-term lets are an attractive investment:

1. Higher Nightly Rates: For this property in Canning Town, the nightly rate can be as high as £350. Even at a 70% occupancy rate, you could achieve an impressive annual return.

2. Flexibility: As a landlord, you have more flexibility with short-term lets. You can adjust pricing based on demand (e.g., increasing rates during peak travel seasons or local events) and choose when to make the property available.

3. Furnishing and Added Value: Our Tinto Road property is already set up for short-term lets, with selected furnishings available for purchase at an additional cost. This makes it easier to start generating income right away.

Example of Potential Earnings

Let’s look at some simple calculations to show the potential income from this short-term let property.

Nightly Rate: up to £350 for this example, we will use the upper rate
Occupancy Rate: 70% (approx. 256 nights per year)
Annual Gross Income: 256 nights x £350 = £89,600

Even when you factor in expenses such as property management fees, maintenance, and utilities, the potential return far exceeds what you would expect from a long-term rental.

Location Matters

The key to success in short-term lets is location, and Canning Town is a rapidly developing area with strong appeal to renters. The property is within walking distance of Canning Town Tube Station (just 12 minutes away) and London City Airport is a short 1.6 miles away, making it ideal for travellers.

Major financial districts like Canary Wharf are only 13 minutes away by public transport, making it attractive to business professionals looking for short-term accommodation. The ongoing regeneration of the area is increasing its desirability, further enhancing the long-term value of properties here.

What to Consider Before Investing

While short-term lets can offer excellent returns, there are a few things to keep in mind:

1. Management and Maintenance: You’ll need to manage more frequent guest turnover and maintenance. Many investors opt to hire a property management company to handle bookings, cleaning, and guest communication.

2. Local Regulations: Some areas have restrictions on short-term letting, especially in larger cities. Always check local regulations to ensure you’re compliant.

3. Vacancy Risk: Although short-term lets can generate higher returns, there is also the potential for vacancy periods. However, in a well-connected and desirable area like Canning Town, this risk is lower.

Conclusion

If you're looking for a lucrative investment, short-term lets can provide significant returns, especially in up-and-coming areas like Canning Town. This particular property, priced at £550,000, could be a perfect investment with a nightly rate of up to £350 and a location that guarantees strong demand. 

To learn more about this property or schedule a viewing, contact Bhavi Bhudia or Richard Greene at 0330 113 5535 or email bhavi@eliteintlrealestate.com.