The latest tax relief changes on Buy-to-Let mortgages leave UK landlords and homeowners struggling to maintain their yields, one opportunity to increase their returns could be renting out the properties in the short-letting market.
‘Short lettings appeal to mainly tourists and business travellers, looking for a cheaper alternative to a hotel for their trip. Even though it is cheaper for the guest, the property owner is still making more money – specifically, up to 50-100% more than they would if they let their property long term.’ Said Alexander Lyakhotskiy, chief executive officer of Pass the Keys, a property short term letting management company. For a two-bed flat in London, the media long-term rent is around £1,972 while the median short-term rent could be £3,690, according to Pass the Keys, and Home.co.uk.
Lyakhotskiy continued, ‘The most ideal properties for the short term market are ones centrally located in the city, and has good transport links in order to make the most of their visit. Central locations normally achieve a higher property occupancy rate, hence a higher income for the property owners. In terms of property size, a one bedroom flat is perfect for a couple’s weekend trip, or a solo business traveller, whereas a bigger house with four or five bedrooms will appeal to a family on holiday. Add more to your price per night by adding a sofa bed which can accommodate extra guests – a popular filter used by travellers when searching for accommodation.’
However, the higher income does not come without its hard work. Short term lettings require more frequent cleaning jobs, guest check-in and bookings management, listing expertise and high quality photos, fresh towels and linens for each guest, as well as guest support all through the night in case of an emergency. ‘It can be a full-time job and requires you as much as 50 hours per week to manage a short let property.’ Lyakhotskiy added.
Pass the Keys is an Airbnb professional Co-host. The company prepares professional property listing, replies to guest requests, provides 24/7 guest in-stay support, arrange cleanings after each guests’ stay. The firm operate in ten cities in the UK, uses in-house technology to manage the properties smartly and maximise landlords’ profit. The service aims to make hosts enjoy the extra income that short letting brings without extra hassle. The company even has an online short let revenue forecast calculator which tells you how much you could potentially earn via short lets based on your property size and postcode.