Dispelling the myths around short term lets

 

Most people who invest in the buy-to-let market opt to let their properties to long-term tenants. Seen as a safe, convenient and sensible option, long-term stays can generate a good income and provide landlords with a stable investment. 

 

However, those who want to make their properties work a little harder have another option: short-term stays. Giving landlords the potential to dramatically increase their income and see a real return on their investment, short-term lets are a great option for all ambitious entrepreneurs out there. 

 

The UK’s sharing economy – of which short term lets are a part – is predicted to expand by 30% over the next decade, generating £140bn in the process 

 

 

One of the main reasons that landlords opt for longer tenancy agreements is that they believe short-term lets are more work. Whenever a tenant leaves a property, that property has to be cleaned and prepared for the next occupant. And while this sounds like a lot of work, it can be made much easier to manage by hiring a professional company to look after the property. 

 

Professional management will take care of the cleaning and the prep of your investment. They’ll even schedule stays, look after check ins and take care of any issues that might arise during the tenancy period. As a result, short-term lets often require less work, and less time, than longer term alternatives. 

 

 

Another common myth about short-term lets is that they’re less profitable. Because properties let on a short-term basis are often vacant for more of the year, landlords believe they’ll get less back from their investment. 

 

• The average property let on a short term basis brings in a rental yield of 30% 

• Landlords with long term lets can expect to see a yield of around 7% 

 

However, because properties let on a short-term basis demand a premium, returns can be significantly greater. In fact, moving from long- to short-term lets is often one of the best ways for property owners to boost their income and increase their returns. 

 

 

As long as you use a professional management company, and your property is in a good location and in good decorative order, finding short-term tenants should be easy. A lot of people use short-term tenancies when relocating or when staying in a new city for a limited period for work or pleasure. These types of tenants will pay a premium to stay in well managed and well maintained homes, giving landlords the opportunity to maximise on the income from their rental property. 

 

• In 2016, 86% of serviced apartments in Manchester were occupied throughout the year 

 

 

Because more people are passing through a property when it’s let on a short-term basis, landlords often believe there will be more wear and tear. And although this may be true for some properties, those that are well managed shouldn’t be adversely affected by short-term rentals. In fact, changeover periods offer landlords regular opportunities to maintain their properties and keep everything in order. 

 

If you’d like to find out more about the benefits of short-term lets, explore our site or get in touch with a member of our team today.