14 May What is short letting and why you should do it this summer
You might have heard the term short letting from websites like Airbnb or Booking.com. These online platforms dedicated to short stays are becoming increasingly popular. But what actually is short-letting and would it be beneficial to you? Well, from our years of experience we have provided some advice.
What is short letting?
A short let is any letting agreement that lasts less than three months, but often just a few nights or weeks.
The short letting market has been booming over the last years and will keep doing so. It is extremely competitive against your typical hotels and has many advantages for guests; for instance, they can stay in a private property which offers a more private, personal and comfortable experience than a hotel. Guests that would be interested in staying range from many different profiles: people who are researching an area before committing to buying, contract workers looking for accommodation, or simply travellers/holidaymakers looking for a place to stay for a few days or weeks.
Why it is beneficial for you?
One of the main reasons to short let your property is the extra income you could gain. For hosts, short letting represents a potentially lucrative revenue stream as they can command around 30% higher rates than long-term rentals, especially during the high season. Furthermore, following some great legislation last year, hosts can now earn £7,500 in rent without paying tax. This is around the national average, meaning most lodger-landlords won’t pay any tax. Additionally, short lets also offer greater flexibility to extend tenancy contracts weekly or monthly at your own discretion.
Where to short-let my property?
When it comes to short letting, London is the perfect city for hosts, as demand is so incredibly high. The two biggest players on the market are Airbnb and Booking.com. Therefore, if you wish to short-let your property to make the most out of it, creating an account on these websites is the way to go. We have worked on a couple of tips you could use when building it up, so it looks attractive to potential guests.
Is there anything else you need to check?
Although it has become a lot easier to be a host recently, there are still important things to do before you can start.
First, you should check that the property is adequately insured for short lets. Our recommended partner for hosts is Pikl, they offer comprehensive and flexible coverage to suit almost everyone.
It is also worth keeping in mind there is legislation in place preventing homeowners in London from renting out on a short-term basis for more than 90 days a year. Should you wish to rent out your home for more than 90 days as a short-term let, you may need to apply for Material Change of Use from your local authority.
Short letting truly is a golden opportunity for many but it does come with a great deal of hassle. We at City Relay, are London’s most trusted short let professionals, helping hundreds of hosts get more out of their property. Contact us today to get your properties free rent estimation