Hi, has anyone switched to serviced accommodation, such as corporate letting so instead of tenants you have guests?
If so how has it worked out? And is it done through an agency and if so do you recommend them?
We are living in our second property while we renovate our home but when we move back we do not want to be landlords with tenants again and we also do not want to sell because of CGT.
Thanks
Check the local restrictions on what’s possible. Eg In London there is a 90 day limit on short term lettings.
Best
I will check. However the owners of the house opposite do corporate letting and they’ve had constant occupants, though different groups, for many months, possibly for as long as a year, indicating there may not be any restrictions. The owners moved away from the area and we believe it’s done through an agency that send in cleaners between different groups. We’re not in contact with the owners to ask though and we keep missing the cleaners.
in prep for this you might want to see if you can find insurance and, if you’ve a mortgage, check your lender is OK with this.
No mortgage, thanks though
did you manage to find an insurer? My experience of this market is that it was tricky to find insurers willing to cover more than 90 nights a year. Once you cross that threshold I was into hotel/guesthouse insurance premiums that were through the roof. I believe that the way round this might be to sign up to some kind of agency that does this for you because they bundle insurance in with their percentage take.
We’re only just considering it atm but I appreciate all the advice and suggestions. Thanks
sure… do let us know how you get on if you pursue this as I’m sure it’ll be worthwhile to other forum members as the PRS becomes a harder area of investment for LLs.
Very different tax regime so worth reading a bit about that in advance.
Hi Lorraine, there is a lot to know about this type of letting. And associate of mine specialises in this area of the market and I suggest that you give him a call. He will tell you everything that you need to know about Tax, Insurance, rental time limits, pitfalls, booking and advertising efforts required, etc. Depending where you are, he might also be willing to manage it for you if you wanted him to. If you would like to contact me on lucy@thefryer‘s.co.uk, I can put the two of you in touch.