Hello
After May I may let flat out on short term let or holiday let, minimum term, in case I can’t sell the flat as market in London flooded with flats 4 sale.
How do I do this?
Check your lease to make sure short terms lets are allowed. They are not in most places. Also check Local Authority planning rules. Some have restrictions. Either find a good agency or use something like Vrbo or AirBnB. Vetting is essential otherwise you can end up with teenagers having parties, short term brothels or worse. Make sure you have a good house keeping service and reliable trades who will come out promptly - people renting for a week expect things fixed fast. .
Our agency (for three holiday lets by the beach in Bournemouth) recommended that it was furnished and equipped so that the family could cook a roast dinner. (Good advice as regular repeat visitors were grandparents coming down to help with child care during school holidays.)
What broke us were the last minute cancellations and the complaints. Our last was someone who negotiated a discount for a last minute booking then complained about everything and wanted more money off. One complaint was about the mattress, which we had just bought and superior hotel quality. We sent over the receipt and the agency dealt with it, but though there was good money it became tedious.
The good thing is that you let on a license so no RRA.
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Good advice from Sarah above. I would just add that:
- There is a 90 day limit on holiday lets in London on top of any other restrictions
- Holiday lets are considered a business and most leases forbid carrying out any business at the property
- You would need to have the property fully furnished plus pots, pans, crockery etc and of course bed linen and towels
- You would need somebody to clean and launder between lets and do check in and check out
- There’s a different tax regime for holiday lets that you’d need to be fully aware of
- Theres not really any such thing as short term lets as distinct from assured tenancies, with the exception of serviced apartments and lets for contract workers who’s main home is elsewhere. You could come unstuck without very good evidence of this.
I’m in the process of selling a flat in London that failed to sell 2 years ago, but this time had a good offer very quicky. The market may not be as bad as you imagine.
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Hi
Is there anyway I can advertise for a 3 month let after 1 May?
L.
only if you turn it into a serviced let and employ a cleaner.
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Google short lets in London and see what comes up. Various people will come up including Foxtons, who thought expensive have offered this service for a long time and who have good corporate links.
Short terms tenancies, and tenancies for people for whom it is not a main home, can be different. A few years back I got some good advice from the NRLA helpline, but I am sure things have changed since. My understanding of where holiday lets stand vis a vis the RRA seems different from David’s which does not mean I am right. However it does mean that you either use and experienced and specialist agent or you get expert advice. . I know the holiday let agency I used was very good at sniffing out potential stags and hens (Bournemouth was a favourite destination). Given how much is at stake I would really use someone till you better understand the business.
Tax too. I suspect that you may fall in the middle. HMRC requires a property to be available for a certain number of days. London Local Authorities restrict holiday bletting to a certain number of days.
But absolute first step. Check your lease. Many leases limit letting to tenancies of more than 6 months.
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I didn’t actually refer to holiday lets in relation to the RRA, but am happy to now. As long as its a genuine holiday, the let is exempt from the assured tenancy regime and hence the RRA.
I’m a retired owner occupier and would like to continue renting out my flat for just over 6 months in winter. Will this be possible under the RRA?
Probably not. The RRA doesnt allow this for assured tenancies. Holiday lets or serviced lets might be an option but they are classed as a trading business and most flat leases forbid this. If you could find a tenant who is a contract worker with a main residence elsewhere and who is looking for 6 months, that might be possible as it would in principle be outside the scope of the RRA. However, that’s a lot of ifs and you’d need specialist legal advice before attempting it.
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Thanks David122. I’ve done all the necessaries (and paid the fees) to obtain a licence from my local Council, including LL training, and all income is declared on my tax return, so all totally legit until now. I’ve never understood why short term lets like mine aren’t given fair consideration in housing legislation.
to be fair, finding someone who wants something just for 6 months and will give you your property back at the end of it is pretty difficult anyway. You could Airbnb it if it’s in a location that would attract that kind of visitor and all parties are ok with that. Alternatively, if you simply need someone to look after your place for 6 months rather than leave it empty, look at house sitting websites.