Why unique homes are perfect for short lets.
There is a lot of fuss over the changes to buy-to-let that are affecting private landlords, particularly the end of mortgage tax relief coming in April this year, not to mention the 145 different pieces of legislation landlords need to adhere to when renting out their property.
Many landlords have had enough and are selling up, but others are looking at alternative ways to earn money from their rental property in order to retain it and profit.
Completely by accident, we arranged a couple of short term lets on our rental properties recently and have realised that no homes are better suited to reaping the rewards of short lets than unique places to live.
As such we now offer a fully managed short lets service designed especially for private landlords looking to keep hold of their investment property, reduce the level of paperwork and to potentially increase their rental income.
Unique homes are ideal for short lets as they often have special qualities that appeal to visitors who are away from home for extended periods. London is a hotbed of visitors seeking temporary accommodation, particularly from the arts and entertainment world, from film actors, directors and producers, to musicians making their next album, to artists exhibiting at London’s large crop of high-profile galleries.
Aside from celebs and stars, there are plenty of businessmen, high-ranking officials and other
dignitaries regularly descending on London for prolonged short-term visits. They don’t want to
be cooped up in a hotel and often seek out unusual, luxury or beautiful property in great locations to make their time away from home something special and where they can feel comfortable for the length of their stay.
There is also a continuous demand from Londoners for short term rental property while they renovate their existing home. Particularly prevalent in the more expensive postcodes, people undertaking enormous renovation projects that take months to complete don’t want to be living in a building site. But they do want to stay close to home, and not just in order to oversee the
works. They want to retain as much normality as they can around regular life, from commutes, to school runs, to grocery shopping, to free time.
A particular example of that is at Bankside Lofts on the south bank in SE1, next door to Tate Modern. Here we recently arranged the short letting of an apartment to its next door neighbours who were having their entire home completely refurbished. Not only did they want to avoid living with builders and dust, it was simply impossible to stay in their apartment given that the kitchen, bathroom and everything else were being completely ripped out.
But having a flat immediately next door meant they could retain their lifestyle completely and easily pop in whenever they wanted or were needed to see how the builders were getting on, and to nip any issues swiftly in the bud.
So that’s a nice story, but your worry might be the perceived extra hassle of renting your property out on a short term basis and this fear-mongering is being used in the industry to keep landlords exactly where they are. But really, if you have a management company acting for you then the hassle, if there is any, is no more than for a straightforward assured shorthold tenancy.
While the length of the stay is shorter, in terms of the actual work for a landlord it is almost zero, because the managing agent looks after everything for. Yes, there may be longer void periods, but the increased rent that short lets attract can easily offset any extra vacant time.
There’s a lot less legislation affecting short lets so they are potentially a excellent route for landlords who wish to remain landlords and to keep their rental property for its long-term capital growth. There is, however, more groundwork and so, unless you are a full-time landlord who arranges all the checkins, checkouts and maintenance work, it would be very wise to have your short let managed for you.
If you would like to talk about whether your property is suitable for short term lettings, please get in touch on 020 7917 9995 or at [email protected]