Rising numbers of landlords are likely to switch to specialising in holiday rentals and short-term lets in the months ahead, an industry figure predicts.
New figures show 2,426 holiday-let companies were set up last year, compared with 592 in 2016, according to lettings agency Hamptons. Meanwhile the vacation specialist Sykes Cottages says 25 per cent of 350 holiday-let owners surveyed had previously run properties as long-term lets.
Jonathan Rolande from the National Association of Property Buyers, says: “There is a good reason why holiday lets rent for far higher amounts than the equivalent buy to let property. Compared to a holiday let, a BTL is relatively ‘hands-free’. Once a tenant moves in they take liability for electricity, gas, council tax and cleaning.
“The landlord will need to carry out running repairs and maintenance. Managing a BTL is relatively straightforward and many landlords do it themselves or use an agent at a cost of around eight per cent per month, based on the rent collected.”
Rolande warns landlords looking to move into holiday lets that it isn’t straightforward.
“With far more tenant turnover, cleaning and inventories must be carried out constantly. Bedding and consumables need to be replenished as well. Management is very labour intense with agents charging around 20 per cent of rent for the service. Wear and tear is likely to be a significant factor, much more so than with BTL.
“Landlords may well find themselves faced with more issues around noise and disruption affecting neighbours. Additional services such as refuse collection need to be considered too, not least because the amount of waste generated by holidaymakers is greater than that of a full time occupant.
“There is no doubt that holiday letting has its place for both landlord and holidaymaker. They also allow a greater number of people to visit an area, boosting the local economy. But landlords who are considering switching should ensure they do their homework, the extra income could be very hard-earned.”
A series of tax changes and an increase in the number of people holidaying in the UK have led landlords to choose short term lets over full-time tenancies.
As well as the tax advantages, there is also the draw of higher incomes.
The average monthly rent in the south west was £800 in the year to September 2022, according to the Office for National Statistics. Listings on Airbnb, a platform for short-term lets, show properties available for £155 a night on average in Cornwall, which would bring in the same rental income in just over five days.
There are an estimated 408,000 landlords in England, with 4.4m households in the private-rented sector, according to the latest English Private Landlord survey. That is about 11 properties per landlord.
Government estimates put the number of holiday-let properties at 257,000 in England, with 62 per cent in the southwest, southeast and London. Thousands of other properties are rented out occasionally by second-home owners or people who - thanks to the arrival of sites such as Airbnb - have found it easier to make extra money from their home while they are away.
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Well at least they won’t be saddled with a Sitting Tenants or worse a non paying Sitting Tenant or a lead Tenant that has sub-let your property made a killing and disappeared with the money you didn’t receive, left you with occupants installed that you don’t know from Adam and not compatible with your Tenacity Agreement that you signed up to.
Good idea keep landlords out at all costs, all the do gooders making nandy pandy rubbish rules.
I cannot understand any current rental properties in Cornwall NOT being holiday let’s 💵💵 Kerching…. Evict now whist you can before the planning permits are needed.
I've had a dabble at the holiday let game and I can assure you it's much more lucrative and less stressful than the BTL game. I'll be keeping a couple of holiday lets and the others will be sold... Who needs all the BS associated with the PRS. Holiday lets are the way forward for me.
I will not have tenants at any price! Not in this country!
I do FHL and am willing to put in the work knowing that my guests are not going to be from hell with the government as their pal!
Any tenant knows that he can go rogue on you nowadays!
Let the council house them!
P.s, I would have loved to be a normal landlord but with today’s attitudes I might as well be black in 1920s Mississippi!! With a white racist sheriff!
No thanks!!
Now that we know what’s in the unfairer Renters Reform Bill being forced in to destroy Private landlords.
The 8 anti-landlord disgraceful changes are an a front to British Justice, so we can no longer expect any degrees of fairness or have any confidence in the System it’s so blatant, certainly nothing to do with the truth.
Surely they should know can't work in long term. Go full circle. In meantime bankrupt landlords
Successful business people look to the long term, MPs are only interested in the short term while they are in power, which is why this country is going down the toilet
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