Stepping Off The Merry-Go-Round: Is It Time To Turn Your Holiday Let Into A Long-Term Let?
It would be fair to say that the last year has been nothing but ups-and-downs for those landlords in the holiday let business.
The summer of 2020 saw a huge surge in demand for holiday rentals with people choosing a staycation rather than the limited and worrisome choices available for overseas travel. This abundance led to us all feeling very hopeful that UK holidays were the new normal and that landlords of short-term lets would see a good and reliable return on their investments.
However, since the second lockdown in October and with the last-minute changes to the tiers in the run up to Christmas, many holiday let landlords experienced huge swathes of cancellations and the scenario of properties empty over the winter.
The outlook for 2021 looks unclear and it may be possible that we will continue to see less than ideal circumstances for a solid income in the holiday let sector. Might it be the time to take a temporary break from the uncertain outlook for short term holiday lets and turn your property into a long-term let with a more guaranteed regular income?
Below, we address some of the questions that we've been getting asked recently:
What would be the benefits of switching from short-term to a long-term rental arrangement for my property?
There are many benefits to having tenants in-situ for a longer period of time and probably the most obvious is the consistent income that comes from the monthly rent. You wouldn't need to worry about arranging changeovers, adjusting prices for peak and low seasons and continually marketing your property; once your tenants had moved in, you could relax in the knowledge that you had a secure long-term tenancy. Alongside this, you would no longer be responsible for some of the running costs, including council tax and utility bills, unless your property became vacant. If you chose to have your property managed by an agency, you would be able to have much more of a hands-off approach and could let your agent deal with the day-to-day responsibilities for you.
What would the costs of changing over to a long-term rental involve?
In order to set up your property for a long-term let, there are various processes that need to be carried out such as initial marketing on platforms such as Rightmove, inventories and referencing for potential tenants. To see the full range of services and which ones we feel are essential, please check out our article here.
It may also be necessary to carry out remedial works to your property before beginning a new tenancy. A property that is well-maintained not only gets snapped up quickly but also encourages tenants to take extra care.
By law, my property already has a valid Gas Safety Certificate and EICR, would I need to arrange any other inspections?
Along with those very important checks, it is a requirement that an EPC (Energy Performance Certificate) is carried out and that the property is deemed to be a Band E or higher. It is also important to have any chimneys swept and any septic tanks emptied, prior to tenants moving in.
What would I do with the furniture in my holiday property?
In the West Country, tenants do usually prefer to rent properties that are unfurnished. Obviously, if you have space to store the excess furniture from your property then that is ideal, otherwise, storage pace can be easily rented in your local area and prices are quite competitive.
For many landlords, the holiday let sector is a perfect fit for them and they enjoy taking a more active role in the renting of their property. We hope that the market for this in 2021 recovers quickly and people can get back to doing what suits them best. If however, you are thinking of taking a break and would like the increased stability that long-term renting can provide, please get in touch and we will be happy to answer any questions that you may have.
01747 416 516