Tenants renting for all sorts of reasons
If you are a landlord, you may be considering short-letting your property for a number of reasons. Perhaps you’re looking to generate additional income, or maybe you need to move temporarily for work or personal reasons. The name may seem self-explanatory, but short-term lets usually have to fall within a certain timeframe in order to be considered as such.
RENTAL MARKET
As a general rule of thumb, a short-term tenancy is usually a rental property that is being offered to the market for six months or less. Whatever your motivation, there are a number of things to keep in mind before making the decision to short-let.
With the rise of ‘the sharing economy’ propelled by start-ups like Airbnb, many homeowners and second homeowners are in an easier position than ever to enter the short-term rental market.
TEMPORARY SOLUTION
By putting your otherwise vacant home up for rent, you can benefit from a new source of income and present travellers with an affordable and comfortable alternative to hotels and hostels.
Many people use short-let properties when they have had a relocation with work. Often these relocations can happen quickly and to somewhere completely new, so instead of making rushed decisions many choose to find a more temporary solution.
ADEQUATE INSURANCE
Some people also look to short-lets while their own home is undergoing construction work. They are looking to rent a comfortable place that is close to home so they can keep an eye on the progress, but then get away from all the dust and noise. This makes short-letting a good way to generate extra income, but it’s important to make sure that you understand what’s involved.
For example, if you’re planning on letting out your property for a short period of time, you need to make sure that you have adequate insurance in place. Additionally, it’s worth bearing in mind that there may be additional wear and tear on your property as a result of short-term tenants.
WELL-EQUIPPED
Another thing to consider is the type of tenant that you’re looking to attract. If you’re hoping to let your property to holidaymakers, for example, then you’ll need to make sure that your property is in a good location and is well-equipped for their needs.
On the other hand, if you’re looking to let to professionals or students, then you’ll need to make sure that your property meets their specific requirements. Make sure you take any local rules relating to short-letting into account. It may be tempting to assume that what’s good enough for you as the homeowner is good enough for your guests but, in terms of health and safety, that isn’t necessarily so.
ADDITIONAL COSTS
It’s also worth bearing in mind that short-letting can be a more expensive way of letting than traditional long-term renting. This is because you’ll usually need to pay higher insurance premiums and there may be additional costs associated with marketing your property and dealing with tenants. In terms of your relationship with HM Revenue & Customs, the same common-sense rules apply as to any other business.
POTENTIAL LANDLORDS
Overall, there are a number of things to consider before deciding whether or not to short-let your property. However, if you’re looking to generate additional income or need to move temporarily for work or personal reasons, then short-letting could be the perfect solution.
It provides a guaranteed income without the need to find a series of tenants and deal with the headaches and hassles that can entail. And, typically, short-let properties come with higher rental incomes than long-term rentals, so it can be a really attractive option to many potential landlords.
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Whether you’re looking to purchase your first property to let, or expanding your current portfolio, why not find out how we can help you. Contact Cedar Crest Ltd – telephone UK T: +44 (0) 203 883 1017, HK T: +852 6645 4462 – email info@cedar-crest.co.uk.
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