When entering into the world of being a landlord for the first time, it can be easy to become overwhelmed with the amount of choice that is available to you. Being a landlord can often mean more than just renting out to long term tenants for many years. In fact, you also have the option to offer premium short lets to potential tenants in the London area.
A popular area such as London can see seasonal peaks and troughs throughout the year, providing savvy landlords with the chance to target short term tenants with great deals. If this sounds like something you’d be interested in, keep on reading!
Hostmaker are leading suppliers of property management services and have a keen eye for detail when it comes to renting and letting trends. We’ve compiled some important information about premium short lets, as well as their relevant pros and cons to help London landlords decide on the best way to let their property.
What Are Premium Short Lets?
Before you can begin learning the pros and cons of premium short lets, it is important to understand exactly what this term means and what if offers to both landlords and tenants. If you’re a new landlord, the term premium short lets might not mean anything to you, so we’re here to shed some light.
With the likes of Airbnb propelling “the sharing economy” movement, home owners and second home owners are now in an easier position than ever to offer short letting options to tenants.
The term essentially refers to any kind of rental agreement that is under 6 months. Anything longer than this would be considered a long term rental agreement. The demand for premium short lets are actually on the rise, especially in London. This is due to London being such an in-demand area, as well as a popular tourist location.
When entering into a premium short let agreement, it is usual for landlords to include things such as utilities, television and internet in the rent. Short term letting properties tend to come fully furnished with a fully equipped kitchen.
There are many advantages associated with entering into premium short lets. If you’re considering advertising your property to the short term rental market, here are some of the pros you can expect:
- You can attract much higher rents – you can attract as much as 3-4 times the normal rent, especially if your property is in a big city location such as London. This means landlords can experience lucrative return on investment for their short term property rental. This is especially the case during peak summer seasons, where tourists are looking for a place to stay in the heart of London to experience its British charm.
- Offers landlords with flexibility – for example, if you’re looking to move abroad or simply travel for a short while, a premium short let is the perfect choice. A short let does not confer on tenants the same rights as an AST does, so you get your property back quickly and cleanly.
- Can attract good tenants – often, premium short lets will attract good tenants. This often includes working people who are looking for temporary accommodation as they embark on internships or work experience. In 2018 in London there were 1,563 businesses. This means a lot of jobs for a lot of people!
- Not always allowed by local authority – sometimes, your local authority may not allow you to make your property available for premium short lets. This is something you will need to check before you advertise your property or take on any short term tenants.
- May experience more void periods – it isn’t uncommon to see periods of time where your property is out of use. This can be caused due to many things such as high competition in your specific neighborhood or seasonal trends.
- Property may get mistreated – it is unfortunately the case that some short term tenants may not treat a premium short let property as well as they would a long term rental property. This is because they know they will not have to stay in the property for as long as they normally would.
What Is Right For You?
As you can see, there are a range of different positives and negatives associated with premium short lets. However, if you rely on the professional property management services as offered by Hostmaker, you can see the list of pros increase.
If you’re looking to take advantage of an ever-growing market of short term renters, or if you’re looking to boost your income to save for a big investment, premium short lets can be the perfect choice for you.
We can help both long term and short term let landlords keep on top of daily chores as well as overbearing responsibilities. When it comes to premium short lets, we’ll not only help you to advertise your property to ensure it gets the business it deserves, but we’ll also ensure your property is kept in tip top condition.
Things To Keep In Mind When Letting Short Term
Just as you would as a long term landlord, you’ll still have some important factors to consider when letting on a short term basis. For example, you’ll need to address the following:
- Health and safety – is your property a safe environment for your short term tenants? You’ll need to make sure your property is fully compliant with all local health and safety regulations.
- Tax and insurance – depending on the type of home you are letting out, whether it is your primary home or your secondary home, you’ll need suitable insurance that offers a good level of cover.
- Insurance for Airbnb – if you’re advertising your short term rental property on Airbnb, you’ll need to consider different types of insurance. This is a major consideration for premium short let landlords.
Start Letting Successfully Today
If you’re interested in letting your property on a short term basis, feel free to get in touch with us today regarding our property management services. We’ll be able to answer any of your questions and help you to decide on what services you need to see success from this new business venture!