ARE YOU A HOME OWNER TAKING ADVANTAGE OF DEMAND FOR SHORT TERM LETS?

Tue 05 Jan 2016

Jeremy Leaf, Principal

Letting property for less than 90 days has become more popular recently partly due to the success of companies like Airbnb. However, we have found landlords tempted into short-term renting tend to let rooms infrequently and often not very professionally – partly due to lack of familiarity with complex rules and regulations.

Demand for shorter term accommodation is rising and particularly from tenants seeking a cheaper, more flexible alternative to city centre hotels.

Short-term letting was given a boost in July’s Budget when the rent-a-room tax free income threshold, which includes bed and breakfast, was raised for the first time in 18 years from £4,250 to £7,500 per annum (after April 2016) for a landlord’s only or main residence.

The aim is to increase the supply of affordable rented accommodation in larger towns or cities where rents have often risen more rapidly than elsewhere and demand is greatest. Lettings group ARLA recently set out some timely advice for those considering short-term lets, such as:-

a)ensure your mortgage or tenancy agreement allows for short-term renting;

b)use reputable agents eg ARLA or RICS members, to find tenants and manage the property;

c)don’t forget compliance with health & safety, utilities, furniture etc, rules;

d)make sure the property is in at least 3* hotel condition but use an inventory;

e)budget for regular cleaning/repair to reduce damage from over-use;

f)take care short-term licences don’t become full statutory tenancies.