Short Term Lets
Considering short letting your property? We manage a number of properties for Landlords who let their properties on a short let basis e.g. one week to three months. Marketing your property on our website and guidance on which properties make the most suitable lets, we can also manage the property on a full time basis if required.
- The demand in Brighton for the summer is extremely high commanding a high rental income in direct competition with hotels.
- Flexibility, if you are unwilling to commit your property to the usual six month let.
- Tenants are often from corporate clients making mature and responsible tenants.
Who might require a short let?
- The corporate tenant
- Relocating tenants
- Event orientated tenants (Major Sports Events)
- Disaster recovery tenant
A short let property is sometimes described as a 'furnished holiday letting' - a term referred to by HM Revenue and Customs. These are properties let for periods of anything from days to weeks rather than the more common minimum 6 month letting done for normal buy-to-lets. The HM Revenue and Customs definition is important because they treat these properties as a business rather than as an investment which means there are currently important tax advantages over longer term lets. The tax treatment of holiday lets is different to the tax treatment of longer term lets but this could change.
The definition of a Holiday Let/Self Catering property (as defined from the 2005-2006 tax year when the definition was updated) is:
- available for holiday letting to the public on a commercial basis for 140 days or more, and
- let commercially for 70 days or more, and
- let for periods of longer-term occupation (more than 31 consecutive days) for not more than 155 days during the year.
Use your accountant for most up to date advice.
While the set-up costs for short term let are greater than a long term rental because more equipment is provided and the owner pays for more running costs than with a longer term let, the income can be more as well. There can be significant financial advantages in short term lets over longer term lets but only if the occupancy is high enough for the higher income to cover the extra costs, and it is appreciably more work to market and manage the property.
There are a number of steps that need to be carried out before letting your property short term. Please contact us and ask for our Short Term Letting Guide for Landlords.