Short Let Rentals Essentials
The short let rental industry is in a period of growth, and many property agencies and managers are considering a move into this market.
But does it suit your business needs, and the needs of your landlords?
Edinburgh-Flats is an established short let rental company, working in the industry for many years. We spoke with Karen Blair, director of Edinburgh Flats for her advice for those considering a move.
"Short let rentals can be more lucrative with up to 30% more income than residential lets with higher rental returns and the flexibility of extending guest stays and contracts at their discretion.
Who will short let rentals appeal to?
Short let rentals can have periods when a property may be vacant, so they appeal to a landlord who is less reliant on a consistent rental income, would like some personal usage of the property or has a property that is only empty for a short periods – perhaps between longer-term tenancies, or when they are away from their home for a period.
It is recommended that landlords consider long-term residential lets for more guaranteed monthly income to service the mortgage and bills.
What is a short let rental?
This is typically between a few days up to six months. Utility bills are included in the rental cost, which is paid fully in advance. Because of this, short let tenants are not usually referenced. A damage deposit is usually obtained prior to arrival to cover the cost of any damages.
What type of guest uses short let rentals?
They attract typically, but not exclusively, the following types of guests:
- Tourists: They often prefer the home from home comforts of an apartment.
- Corporate lets: Companies look to place their staff into temporary accommodation working away from home.
- Professionals: Visitors who need temporary accommodation while working away from home.
- Prospective homeowners: Before committing to buy, they may want to live in an area temporarily.
- Homeowners in need of temporary accommodation: A homeowner having substantial building work, or as a result of flooding, fire or subsidence.
What is your top tip when buying a holiday rental property?
Choose your holiday rental in an area which attracts international tourists, businesses and workers, so the demand is relatively high, keeping the void periods to a minimum.
What aspect do agencies often undervalue?
Furnish your short let to a good/high standard and stocked with sufficient cutlery, glassware, crockery, bedding, and linen so the guest can move in with little more than a suitcase of clothes. This will affect your valuable guest reviews."
If you are considering making the move into the short let industry, check out our series of invaluable advice from industry leaders.