5 Take Aways From My Interview With Our Short Term Letting Specialist
According to the Telegraph last year almost 80,000 home owners were earning income from renting part or all of their homes via airbnb and that number is doubling by the year. With this growing sector I wanted to share 5 things you should know before deciding to short let your property whether privately via the online platform or via a short term agent.
Whether a lease holder in a period building or in a purpose built building - check your head lease for any restrictions on short term rental
Speak to a solicitor if the lease is not clear on short term rentals
Ask your fellow lease holders
Get in touch with the building managing agent
Even if you have a buy to let mortgage it is sensible to check with your mortgage provider if short term rental is permitted. If you proceed without permission your lender may ask that you repay the full loan immediately. I have seen this happen with landlords that proceed with HMO's without permission so please check.
Airbnb and other online platforms have their own protection insurance, however , it is recommend that you check with your own insurer as some may not cover you for short term rentals. As the short term rental industry grows you'll find more and more insurance companies catering for this sector so you should have plenty to choose from.
The law and local council:
The law states owners cannot let property for more than 90 days in a given year on a short-term let. If an owner wants to let for longer, they must seek planning permission for a "change of use" from their local council. It would be wise to contact your local council to find out more and any new developments for short term lets
Keep track of your numbers:
Treat this as any other business because that is exactly what it is! One of our long term clients and friend Maggie has a small portfolio in Edinburgh. She has been exploring the short term market for the last year. With frequent visits with to her accountant for tax, expenses and of course her time invested. I am told that you need at least 75% full capacity to make it worth your while when compared to long lets.
Feel free to contact us to find out more about short term rental income vs long term rental