Pros and Cons of Short Lets
Short lets are worth considering if you’re prepared to put in the effort to sweat every last drop of rental income out of your property.
Tenants will usually pay at least twice the usually rent to let a property for a period of three to six months compared to a standard let of six months or more.
For even shorter lets, or holiday lets of less than a month, you can sometimes charge three or four times the usual rent.
However, if you’re considering short lets or holiday lets you need to research the market first to make sure there is enough demand to avoid expensive long voids.
Also, don’t forget that landlords usually pick up the council tax and water bill for lets of less than six months, and for holiday lets you’ll also be responsible for the energy bills and possibly even the wi-fi connection and TV licence.
As you’ll have a higher turnover of tenants, you’re marketing costs might be higher and you’ll definitely have to spend more time managing your property.
You should also check with your lender if you have a mortgage on the property as it’s usual for buy-to-let mortgages to stipulate they must be let on a standard AST of a minimum of six months. You will also need to make sure you have adequate insurance.
Finally, make sure your local council doesn’t prohibit short lets or holiday lets and check if you need a licence. In London, due to an ancient bylaw, you can only let a property to holidaymakers for a maximum of 90 days, although some local councils don’t enforce this law.
If you’re property is leasehold, you’ll also need to check that short lets aren’t banned by the freeholder.