Owning a property in central London is one of the most valuable financial positions you can be in. The city attracts millions of visitors every year, demand for quality accommodation in prime locations has never been higher, and the short-let market offers returns that traditional long-term rentals simply cannot match. But before you welcome your first guest, there are several important things every property owner should understand.
The difference between short-term and long-term rentals
A long-term tenancy offers predictability — a fixed monthly payment in exchange for your flexibility. Short-let operates differently: guests stay from one night to a few weeks, and you retain full control of your calendar at all times. You can block out dates for personal use and adjust your availability around your own plans. In prime central London locations such as Mayfair, Marylebone, Fitzrovia and Soho, short-let properties consistently outperform long-term rentals by 25 to 30% in annual income, sometimes significantly more during peak periods.
The 90-night rule and planning regulations
Under the Deregulation Act 2015, London residential properties may be let for up to 90 nights per year without planning permission. If the property is let for more than 90 nights, the landlord must apply to the local council for a change of use. As regulations may vary between boroughs, the landlord is responsible for checking and complying with all applicable local requirements.
Leasehold considerations
If your property is leasehold, as many flats in central London are, you will need to check your lease before listing your property for short-let. Many leases contain clauses that restrict or prohibit subletting. Breaching these clauses can have serious consequences. If your lease is unclear, it is worth seeking legal advice before proceeding.
Insurance
Standard home insurance policies typically do not cover commercial letting activity. It is the landlord’s responsibility to ensure that, prior to the first booking, an appropriate specialist short-let insurance policy is in place. For properties managed by Pass the Keys, an additional layer of protection is provided through TRUVI. This service supports the letting process by verifying guest identities, conducting risk assessments, screening for potential fraud, and helping to reduce the likelihood of problematic bookings.
Preparing your property to the right standard
Guests in central London have high expectations. Quality linen and towels, a fully equipped kitchen, reliable high-speed WiFi and a clean, well-maintained interior all contribute to a positive guest experience. Properties that consistently deliver this standard receive better reviews, attract more bookings and command higher nightly rates. The investment in presentation pays for itself quickly.
Understanding platform fees and management costs
Understanding platform fees and management costs, Airbnb typically charges hosts a service fee of around 15% per booking, while Booking.com operates on a commission of between 17 and 20%. If you work with a management company, there will be an additional fee — but a good manager will more than offset this through higher occupancy and optimised pricing.
Working with a professional management company
At Pass the Keys Mayfair, we manage properties exclusively in Mayfair, Marylebone, Fitzrovia and Soho. Our focus on this specific area means deep knowledge of the local market and a track record of strong results for our owners. We handle everything from photography and listing to guest communication, cleaning, maintenance and monthly payouts. If you are considering renting out your property and would like to understand your options, we are happy to provide a free, no-obligation valuation.
Leasehold considerations
If your property is leasehold, as many flats in central London are, you will need to check your lease before listing your property for short-let. Many leases contain clauses that restrict or prohibit subletting. Breaching these clauses can have serious consequences. If your lease is unclear, it is worth seeking legal advice before proceeding.
Insurance
Standard home insurance policies do not cover commercial letting activity. Before your first booking, make sure you have a specialist short-let insurance policy in place. At Pass the Keys, every property we manage is covered by a £1 million host guarantee, providing an additional layer of protection.
Preparing your property to the right standard
Guests in central London have high expectations. Quality linen and towels, a fully equipped kitchen, reliable high-speed WiFi and a clean, well-maintained interior all contribute to a positive guest experience. Properties that consistently deliver this standard receive better reviews, attract more bookings and command higher nightly rates. The investment in presentation pays for itself quickly.
Understanding platform fees and management costs
Airbnb typically charges hosts a service fee of around 3% per booking, while Booking.com operates on a commission of between 15 and 20%. If you work with a management company, there will be an additional fee — but a good manager will more than offset this through higher occupancy and optimised pricing.
Working with a professional management company
At Pass the Keys Mayfair, we manage properties exclusively in Mayfair, Marylebone, Fitzrovia and Soho. Our focus on this specific area means deep knowledge of the local market and a track record of strong results for our owners. We handle everything from photography and listing to guest communication, cleaning, maintenance and monthly payouts. If you are considering renting out your property and would like to understand your options, we are happy to provide a free, no-obligation valuation.