More Flexible, Lower Risk Letting
Letting can be risky, your property can be damaged and you can end up not being paid. Perhaps worse, you can get tied in to having a tenant when you want rid of them.
How can you get some income from your property by minimising these risks?
Holiday letting is less risky and more flexible than traditional letting. It’s not just for the seaside and other traditional holiday locations. It can work very well in cities, especially those with a tourist industry, universities and businesses that bring in short term contractors. Edinburgh is a great place for a holiday let. We are sure London can be just as good. Why not Manchester, Birmingham, Oxford, Cambridge, bath, York…….?
So, what’s the difference between holiday letting and traditional letting and why is it less risky?
You let the property for short periods – typically a few days to a few weeks. You choose when you let it, so if you want to use the property yourself, or are planning on selling in short to medium term, you can without the problem of a sitting tenant.
You let under terms and conditions rather than under a lease. You retain responsibility for utilities, council tax etc. This means that they don’t have tenant’s rights and so you are much less likely to get stuck with someone in the property when you don’t want them there.
After each let, you have property cleaned, laundry done and prepared for the next tenants. Whilst doing this, you are checking the property. The leaking taps, blown light bulbs sticky doors and other minor maintenance matters get spotted and dealt with. Little problems, are much less likely to become big problems.
People staying short periods don’t usually have raucous parties, hang things on the wall, move furniture around. Even though people often ask for washing machines and dishwashers, they frequently don’t use them. They don’t often cook much in the property either. Presumably, they are out sightseeing and having a good time!
Payment problems are rare as you usually take your money before people come into the property. We recommend taking a refundable damage deposit as well. This gets repaid after you have checked the property for any damage.
It is undoubtedly, more work, your costs are higher and your income is more erratic than for traditional letting. But if you have a property in the right place, market it effectively and price it well, you can get as much if not more net income than for traditional letting and it is certainly more flexible and less risky.
Author: Janet Unsworth. Janet is a partner in the Edinburgh Flats Partnership, specialising in Edinburgh Self Catering apartments in a range from budget to luxury which can be booked for anything from a few days to a few months. The new offering from Edinburgh Flats Partnership is expansion into the London Self Catering marketplace - again with online booking facility & a user friendly Landlord interface. If you'd like more information, please call Janet on +44 (0)789 420 5600 or pop along to www.self-catering-online.com
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