Agents reveal hidden cost of short-term and holiday let arrangements
Many landlords across the UK have been attracted to providing short-term and holiday let arrangements over providing for long-term tenants.
Nearly half of landlords that offer short-term lets said they enjoy more flexibility according to figures reported in ‘The impact of short-term lets’ report published by Propertymark during January 2020. Over a quarter said they were encouraged to move to short-term lets as they thought they could achieve higher rents.
While entering the short term or holiday let sector may provide faster profit in the short term, Propertymark members have revealed the hidden costs of short term lets, such as:
- changeover cleaning between stays, to covid safe standards
- providing utilities, toiletries and WiFi
- less likely for tenants to see property as a ‘home’ space, therefore greater potential for damages
- income is not guaranteed as there can be down periods between seasons
- risk of damaging relationships with neighbours due to unruly tenants
- some landlords may be breaching their mortgage stipulations by letting in this way
At the time of ‘The impact of short-term lets’ report it was estimated that nearly half a million properties would be lost from the long-term lettings market in favour of short-term lets.
It is common that in areas where there are more short-term/holiday lets, rent prices are often inflated and agents have even reported prospective tenants looking for family homes missing out.
Despite latest figures revealed by the Propertymark private rented sector report highlighting a lack of rental stock available across the UK and an increase in prospective tenants, over the last few years an increase in legislation affecting the private rented sector (PRS) and the effects of travel restrictions caused by the pandemic, has led to many landlords moving into the short-term and holiday let sector.
Sophie Laing, Propertymark Regional Executive for Cornwall, commented:
“There’s not enough property in the PRS so demand is sky high, but supply is rock bottom.
“Our prices are skyrocketing and we’re getting bidding wars on rental properties, that never used to be a thing – your rental price was the price, but because legally we’ve got to tell the landlord about any offer, we’re having people offer £20 to £40 more a month than we’ve advertised for and then obviously we’re being accused of being “big bad agents” because we’re putting the prices up but it’s just the situation we’re in.”
Kindly shared by Propertymark
Main article photo courtesy of Pixabay