Short Term Let

The duration of a tenancy in London has been in the news recently, owing to a study published by the charity Shelter, which found that one in seven renters in England have been asked to leave their home by a landlord in the last five years.

Although this may be the case, short-term tenancies do still have a role in the current housing market. Obviously, they aren’t for everyone, but short term lettings can be a great answer for certain tenants. Here, we outline the pros and cons of short term rentals, to help you decide if they could be the right option for you.

What are short term lets?

A short let is, quite simply, a tenancy agreement that is for a shorter period of time than the more usual 12-month contract. These types of tenancy are becoming increasingly popular in London but all over the UK, as they offer a degree of flexibility that isn’t possible with a traditional rental agreement.

Short-term lets in London are typically agreed for a period of six months or less, although some landlords may be willing to negotiate a longer contract if necessary. Short-term lets are uncommon, so anybody wanting to rent a home on a short term will have to compete with many other tenants for the same property.

What are the most common uses for short term lets?

There are many reasons why somebody might want to rent a property on a short term basis. The most common reasons cited by tenants include:

1. The need for flexibility

A short term rentals can offer a greater degree of flexibility than a traditional tenancy agreement. This is often attractive to tenants who are looking for a stop-gap measure while they wait for their perfect property to become available.

2. Work commitments and business trips

If you’ve been offered a job in a new city or town, but you’re not sure if you’ll like it and want the option to move on quickly, then a short term rentals can be ideal. It will also give you time to find somewhere more permanent without having to worry about breaking a tenancy agreement. HR managers also prefer to do short term letting for their employees as it is more cost effective for the company.

3. Home renovations

If you’re planning to start renovation in your home, a short term rentals can be a great way to avoid the disruption. It can also be cheaper than renting a hotels or serviced accommodation within the area for the duration of the work.

4. Student accommodation

Many students prefer the flexibility of a short term rentals, as it means they don’t have to commit to a whole year in one place. This can be especially useful for students who are studying abroad or doing internships, as they may not know how long they will need to stay in a particular location.

5. Long Vacation

If you’re planning a long vacation in London, a short-term let can be a cheaper and more convenient option for the duration of your stay. It can also be a good way to experience a new city or country without having to commit to a long tenancy agreement.

6. A change in circumstances

Life is full of surprises, and sometimes we need to adapt quickly to changes in our circumstances. If you suddenly find yourself needing to move for personal reasons, a short-term let can give you the time you need to sort out your housing situation without having to commit to a long-term contract.

What are the benefits of short term lets?

Short lets are typically more expensive than long-term rentals in London, but they make financial sense in many cases. Here are some of the main benefits of short lets:

You can try before you buy

One of the biggest advantages of a holiday let is that it gives you the chance to try out a property before committing to a long-term tenancy. This can be really useful if you’re considering buying a property, as it will give you a chance to live in the area and get a feel for the local community before making such a big financial investment.

You’re not tied in

Another big advantage of a short-term let is that you’re not tied in to a long contract. This can be really useful if your circumstances change unexpectedly and you need to move out of the property before the end of the tenancy. With a long-term contract, you would usually be liable for paying rent for the remainder of the contract, even if you move out early.

You can negotiate flexible terms

With a short term rentals, you have more flexibility when it comes to negotiating the terms of your tenancy. For example, you might be able to agree on a shorter notice period or a lower rent than you would with a long-term tenancy. This can be really useful if you need to move out at short notice or you’re on a tight budget.

It’s easier to get your deposit back

When you move out of a property at the end of a short term rentals, you’ll usually get your deposit back much more quickly than you would with a long-term tenancy. This is because there’s less wear and tear on the property over a shorter period of time.

You have more choice

Another big advantage of short term lets is that you have more choice when it comes to finding a property. With a long-term tenancy, you’re usually limited to properties that are available at the time you need to move in. But with a short term rental, you can often choose from a wider range of properties, as you’re not tied to the availability of just one property.

You can save money

Short term lets can actually save you money in some cases. For example, if you’re renovating your home, it can be cheaper to stay in a short term property to rent while the work is being done than it would be to stay in hotels or serviced apartment.

And if you need to move for personal reasons, a short let can give you the time you need to sort out your housing situation without having to commit to a long-term contract.

What are the benefits of short let for landlords?

While short-term lets offer a number of advantages for tenants, they also come with a few benefits for landlords.

For starters, short term or holiday rentals can actually be more profitable for landlords than long-term lets. This is because you can charge a higher rent for a shorter period of time, and there’s less wear and tear on the property over a shorter period of time.

Another big advantage of short-term lets for landlords is that they offer greater flexibility. With a long-term tenancy, you’re usually tied into a contract for a set period of time, which can be inflexible if your circumstances change. But with a short-term let, you can often negotiate more flexible terms, such as a shorter notice period or a lower rent.

Short-term lets can also be a good way to fill void periods. If you have a property that’s empty for a period of time, you can let it out on a short-term basis to generate some income, rather than leaving it vacant.

And finally, short-term lets can actually be less hassle for landlords than long-term lets. This is because there’s usually less paperwork involved, and you don’t have to deal with things like tenancy deposits and rent arrears.

So there you have it – a few of the benefits of short lets for landlords. If you’re thinking of letting your property on a short-term basis, make sure you weigh up all the pros and cons before making your decision.

What are the different types of short term rental?

There are a few different types of short term rentals, each with its own unique benefits. Here’s a quick overview of the most popular types of short-term let in London:

Buy-to-let

If you’re a landlord with an empty property, you might want to consider letting it out on a short term basis. This is known as a buy-to-let, and it can be a great way to generate some extra income.

One of the biggest advantages of buy-to-let is that you can often negotiate more flexible terms than you would with a traditional long term tenancy. For example, you might be able to agree on a shorter notice period or a lower rent.

Another big advantage of buy-to-let is that it can be less hassle for landlords. This is because there’s usually less paperwork involved, and you don’t have to deal with things like tenancy deposits and rent arrears.

It’s critical to research the location you’re buying before making a decision. When it comes to vacation rentals, holiday lets advises investing in an area that is trendy but has a high demand as well as limited supply.

Seasonality is a significant problem for the UK’s housing market. Many parts of the country, such as coast and countryside, are highly seasonal: London or Edinburgh have peaks and troughs in demand for city flats, but demand for rural homes in locations such as Wales or the Scottish Highlands fluctuates less.

Letting your home

Letting your home on a short-term basis can actually be more profitable than renting it out long-term, as you can charge a higher rent for a shorter period of time. However, there are a few things to bear in mind before letting your property on a short-term basis.

There’s less wear and tear on the property over a shorter period of time, which can actually be more profitable for landlords.

Another big advantage is that it offers more flexibility for landlords. With a long-term tenancy, you’re usually tied into a contract for a set period of time, which can be inflexible if your circumstances change. But with a short let, you can often negotiate more flexible terms, such as a shorter notice period or a lower rent.

It can also be a good way to fill void periods. If you have a property that’s empty for a period of time, you can let it out on a short-term basis to generate some income, rather than leaving it vacant.

However, there are some things to bear in mind before letting your property on a short-term basis. One of the main things to consider is that you’ll need to find new tenants more often, which can be time-consuming and expensive.

You’ll also need to make sure that your property is suitable for short lets. This means ensuring that it meets all the necessary safety and security requirements, as well as being clean and comfortable for guests.