1. What counts as a long-term rental on Airbnb

Airbnb defines a long-term rental as any booking of 28 nights or more. Once a stay crosses that threshold, several things change on the platform:

• Service fees drop. Airbnb charges guests a lower service fee on monthly stays (typically around 5% vs up to 14% for short stays).
• Cancellation rules change. Long-term cancellation policies apply automatically: guests can cancel within 48 hours of booking for a full refund, and after that the first 30 days are non-refundable.
• Payment splits. Airbnb pays hosts monthly rather than per-stay for bookings over 28 nights.
• Review timing. Reviews are left after checkout, not mid-stay.

This is not the same as a traditional long-term let. Airbnb stays (even 28+ days) are a licence to occupy, not an assured shorthold tenancy. The guest has no tenancy rights under the Housing Act 1988, and the host retains the right to refuse future bookings. That distinction matters for insurance, mortgage lender terms, and tax.

1.1 Who books long-term stays?

The typical 28+ day guest on Airbnb falls into a few categories: corporate relocations and project workers, people between house moves, insurance-placed guests (whose home is being repaired), visiting academics or medical professionals, and digital nomads. Understanding which segment you attract helps you price and furnish accordingly.

Wondering whether your property suits monthly guests or short stays?

2. The financial case: when monthly stays make sense

2.1 Revenue comparison

Long-term stays typically generate lower nightly rates than short lets but higher occupancy. A property earning GBP 120/night on short stays with 70% occupancy produces roughly GBP 2,520/month. The same property at GBP 80/night on a 28+ day booking produces GBP 2,240/month, but with lower cleaning costs, less wear, and fewer gaps between bookings.

Whether long-term wins depends on your local short-let demand, seasonality, and how much operational cost you carry. In cities with strong corporate demand (London, Manchester, Edinburgh), long-term stays can outperform short lets in quieter months.

2.2 How to set monthly discounts on Airbnb

In your listing's pricing settings, you can set:

• Weekly discount (7+ nights): typically 10-20%.
• Monthly discount (28+ nights): typically 20-40%.

Airbnb also offers a "smart pricing" toggle, but most experienced hosts set custom monthly rates based on local comparable rents plus a premium for furnished, flexible accommodation.

A practical starting point: check what a similar furnished flat rents for on SpareRoom or Rightmove, then add 15-25% for the flexibility and furnishing premium. That gives you a realistic monthly floor price.

2.3 Costs that change with long-term stays

• Cleaning: fewer turnovers means lower cleaning bills. Budget for a mid-stay clean every two weeks.
• Utilities: the guest uses more electricity, gas, and water over a month than a weekend guest. Factor GBP 150-250/month for a one-bed flat.
• Consumables: you will spend less on welcome packs and toiletries.
• Platform fees: Airbnb's host fee stays at 3% regardless of stay length.

For a full breakdown of what hosting costs, see our guide to the costs of running a holiday let.

Want to sanity-check how those numbers look for your specific property?

3. Legal position: Airbnb stays vs tenancies

3.1 Licence vs tenancy

An Airbnb booking, even one lasting several months, is a licence to occupy. The guest does not have an assured shorthold tenancy, so:

• They cannot claim security of tenure.
• You do not need to protect a deposit in a government scheme (though Airbnb holds a damage deposit/AirCover).
• Section 21/Section 8 notices do not apply.
• The guest leaves at the end of the booking period.

However, if a guest stays long enough and the arrangement starts to resemble a tenancy (exclusive possession, regular rent, no services), a court could potentially reclassify it. To protect yourself: keep the booking on-platform, provide regular services (cleaning, linen changes), and do not grant exclusive possession of the entire property if avoidable. For more on the new rules around tenancy termination, see our guide to Section 21 abolition and what it means for landlords.

3.2 Mortgage and insurance

Most residential mortgages do not permit short-term letting without lender consent. Some lenders allow Airbnb hosting on a "consent to let" basis, others require a buy-to-let or holiday-let mortgage. Long-term Airbnb stays (28+ days) may fall into a grey area: check with your lender.

Standard home insurance does not cover paying guests. You need specialist short-let or holiday-let insurance. Airbnb's AirCover provides some host protection, but it is not a substitute for your own policy.

3.3 Planning and the 90-night cap

In London, whole-property short-term lets are capped at 90 nights per calendar year without planning permission. Stays of 90 consecutive nights or more are generally exempt from this cap, as they are not considered "short-term". Outside London, there is currently no national cap, but local councils may have Article 4 directions. See our London 90-day Airbnb rule guide for the full breakdown.

Rather than navigating mortgage, insurance, and planning rules alone?

4. Tax treatment for long-term Airbnb income

4.1 Income tax

All Airbnb income is taxable. You must report it on your Self Assessment tax return. You can deduct allowable expenses (mortgage interest at 20% tax credit, insurance, cleaning, utilities, repairs, management fees) or use the GBP 1,000 property income allowance if your total property income is below that threshold.

Since April 2025, the Furnished Holiday Lettings (FHL) tax regime has been abolished. This means Airbnb income, whether short or long-term, is now taxed as standard property income. There is no capital allowances advantage for furnished lets. See our UK Airbnb tax guide for a detailed breakdown.

4.2 Council tax vs business rates

If your property is available for short-term lets for 140+ days and actually let for 70+ days per year, it may qualify for business rates instead of council tax, potentially accessing Small Business Rates Relief. Long-term Airbnb stays count toward the "actually let" threshold. See our Airbnb council tax guide for how this works.

4.3 VAT

Short-term accommodation is a VAT-able supply. If your total taxable turnover exceeds GBP 90,000 (from April 2024), you must register for VAT. Long-term stays count toward this threshold.

5. Making long-term hosting practical

5.1 Listing setup

• Set minimum stay to 28 nights if you only want long-term guests.
• Write a listing description that speaks to relocators and corporate guests, not holidaymakers.
• Mention workspace, fast Wi-Fi, washing machine, and proximity to transport.
• Use photos that show the property as a liveable space, not a hotel room.

If you list on multiple platforms, see our guide to syncing your Airbnb calendar with Booking.com to avoid double bookings.

5.2 Guest screening

For 28+ day stays, communicate with the guest before accepting. Ask about the purpose of their stay, how many people will be living there, and whether they have references. Airbnb's messaging system keeps this on-platform and documented.

5.3 Mid-stay management

Long-term guests need different support from weekend visitors. Plan for:

• Fortnightly cleaning (agree this upfront).
• A responsive maintenance contact for issues that arise during a month-long stay.
• Utility top-ups if you use prepayment meters.
• Clear check-out instructions and a process for returning keys.

5.4 When to use a management company

Managing long-term Airbnb stays yourself is feasible if you have one or two properties nearby. Once you scale, or if you do not live close to the property, professional management handles guest communication, cleaning schedules, maintenance, pricing adjustments, and compliance. This is where a company like Houst fits: we manage the full cycle so the property earns without requiring your daily involvement.

Ready to let your property earn without the daily operational work?

6. FAQ

What is the minimum stay for a long-term rental on Airbnb?

28 nights. Bookings of 28 nights or more are classified as long-term stays and trigger different fee structures, cancellation policies, and payment schedules.

Can I switch between short-term and long-term stays?

Yes. You can accept both short and long-term bookings on the same listing by setting a minimum stay of 1 night and offering a monthly discount. Many hosts fill gaps with short stays and take long-term bookings when available.

Do long-term Airbnb guests have tenancy rights?

No. An Airbnb booking is a licence to occupy, not an assured shorthold tenancy. The guest does not gain security of tenure. However, keep the booking on-platform and provide regular services to maintain this distinction.

Is Airbnb long-term rental income taxed differently?

No. Since April 2025, all property letting income (short or long-term) is taxed as standard property income. The FHL regime has been abolished.

Do long-term stays count toward London's 90-night cap?

Stays of 90 consecutive nights or more are generally exempt from the London short-term let cap. Stays shorter than 90 nights do count toward the limit.

This guide is general information, not legal or tax advice. Always speak to a qualified adviser about your situation.