Rental Property Types

Traditionally, whole house buy-to-let properties, let to an individual or one family, were the norm. However, over the years, the property rental market has diversified and takes many forms, suiting a wider range of renters and landlords. Some of rental property types are outlined below:

HMOs typically deliver some of the highest gross yields in the UK rental market, often between *8–12%. By renting individual rooms to unrelated tenants, landlords can generate significantly more income than from a single-family let of the same property. This model spreads the risk across multiple tenants, meaning if one moves out, the landlord still has income from the others. The main advantage is strong cash flow, especially in areas with high student or young professional demand. However, HMOs require high management effort, must comply with strict local licensing rules, and typically experience higher maintenance costs due to more intensive property use. HMO rents usually include all utility bills and council tax, so landlords need to budget for this when working out their return on investment. 

Shared houses involve renting a whole property to a group of tenants under a single joint tenancy agreement, with typical yields in the range of *6–9%. These properties can generate slightly higher income than single-family lets but generally don’t reach HMO-level returns. They appeal to groups of friends or students looking to share costs. The management is simpler than formal HMOs, but landlords still face challenges if one tenant leaves, as the group is collectively responsible for the rent. Financially, shared houses can be a middle ground between single lets and HMOs, offering solid income with moderate management effort.

Single-family lets remain a core part of the market, with gross yields usually between *4–6%. These properties offer stable, long-term income with relatively low turnover and management demands. Families or couples often stay in one property for years, making this option attractive for landlords seeking steady, lower-maintenance investments. However, the financial risk is concentrated on a single tenancy: if the tenants default or leave, there’s no backup income source. Rent increases are also generally less flexible, and capital appreciation (rather than rental yield) often plays a bigger role in overall returns.

Short-term lets can achieve gross yields of *12–15% or more in high-demand urban or tourist locations, though income is highly variable. These properties charge premium nightly rates, offering strong earning potential — but they come with substantial management demands, including frequent guest communication, cleaning, and marketing. Landlords also face risks like local regulatory changes, seasonal downturns, and property wear due to heavy short-term use. While lucrative in some areas, short-term lets require a hands-on or professional management approach to be financially viable.

Holiday lets, often located in coastal or countryside tourist hotspots, can generate gross yields of *10–14% during peak seasons but may see sharp income drops in the off-season. Landlords benefit from strong holiday demand and possible tax advantages, such as mortgage interest relief if the property qualifies as a Furnished Holiday Let. However, the financial risks include heavy seasonal fluctuations, periods of vacancy, and the high costs of maintaining a furnished, guest-ready property. Managing guest turnover and ensuring consistent marketing also demand significant time and effort, especially in competitive locations.

Corporate lets involve renting fully furnished properties to companies for employee accommodation or business stays, with typical gross yields ranging from *6–10% depending on location. These rentals command premium rents and usually attract professional, low-maintenance tenants on medium-term contracts. Landlords benefit from reliable income and less wear and tear, but they must provide high-quality furnishings and meet corporate client standards. Demand can be niche, and void periods between contracts may be longer. This rental type suits landlords seeking steady, higher-end income without the churn of short-term holiday or tourist lets.

*Please note that the yield calculations shown are for illustration purposes only and cannot be relied upon as accurate. Rental yields vary, and are dependent on a number of changeable factors.*

ST Properties Letting Agents and Property Managers work with landlords and agencies across a variety of rental property types. 

Click the link below to speak to us about how we can support you with your rental, regardless of the type.