Why Choose Short-Term Letting Over Long-Term Buy To Let Rentals
Whether you’re a seasoned landlord or a newcomer to the property investment market, deciding which strategy to take - may that be short-term letting or long-term rentals - will be a key consideration. Long term buy-to-lets have always been the traditional strategy, however, short-term letting is growing increasingly popular as a property investment strategy. So is short-term letting the strategy for you? We’re diving into the advantages and considerations to help you better understand which may be the right fit for you.
The Benefits of Short-Term Letting
Higher Earning Potential: Short-term letting, or holiday lets as they are more commonly known, can provide a significantly higher income compared to long-term buy to lets. Particularly in tourist hotspots like Bournemouth and Poole. Based on seasonality and demand, you can adjust your nightly rates to charge a higher premium, increasing your earnings per night versus a fixed monthly payment.
Tax Benefits: In some areas, including Bournemouth, Poole, and the New Forest, landlords of holiday lets may benefit from favourable tax benefits including tax relief on any purchases you make to furnish your holiday let. There is also the possibility that as a holiday let landlord, you won’t need to pay business rates or council tax while your property remains as a short-term let.
Greater Flexibility: Hoping to use your property for yourself for a weekend getaway? With short-term lets, you have the freedom to block out specific dates on your holiday let’s calendar! Whereas with long-term tenants in a buy-to-let, you’re locked into a tenancy agreement with very little ability to be flexible with your property.
Lower Void Periods: Despite more frequent guest turnover, you’re likely to experience high occupancy and lower void periods for your holiday let. With a booming UK staycation market, and a well-marketed holiday let, you’ll potentially see fewer void periods when compared to a traditional long-term buy-to-let.
With plenty of benefits, it’s easy to understand why many landlords are considering a strategic change in their property investment strategy! Although, it’s important to understand some of the wider considerations of holiday short-term lets.
Things To Consider With Holiday Short-Term Lets
Marketing & Management: Running a successful holiday let business requires continuous marketing and management, to ensure you are attracting new guests while ensuring your current guests are enjoying every second of their stay. Positive reviews are important for attracting new guests and maintaining higher occupancy rates year-round.
If you’re feeling like you never have time for yourself, your family or friends, you should consider a holiday let management company who can take care of everything for you.
A holiday let management company, just like ours, exists to support you with almost every element of your holiday let. From marketing, to property maintenance, to guest management. As locals to Bournemouth, Poole, and Southampton, we have a wealth of expertise in the local area meaning we understand how to operate and manage your holiday let to ensure a good return. So what does this mean for you?
By leaning on property management professionals like our team, and the tried and tested systems we use, you’ll have more time for those that you love. You’ll have a team dedicated to helping you run a successful holiday let business in the local area, increasing the profit and overall return you’ll see from your property!
Wear and Tear: Over time, with a high guest turnover, your short-term let property is bound to see some wear and tear. But the beauty of holiday lets is they tend to see less wear and tear compared to a traditional buy-to-let as they are consistently maintained, with repairs carried out as soon as possible if you have a management company on hand. We ensure your airbnb is kept in showroom condition so your guests arrive to a 5-star stay. What’s more, when guests book your holiday let with us, we take a deposit to protect the property in the event of any unwanted damages.
Your decision as a landlord to use your property as a short-term holiday let is totally dependent on your personal goals and aspirations. If you’re looking for something to give you a stable monthly income, then perhaps a buy-to-let is the option for you. However, if you prioritise flexibility, maximising your income and return on investment then a short-term holiday let might be the best fit.
For more information on how to make the most of a short-term holiday let, get in touch with our team today.