Why short-term lets are a growing trend | Landlord Resources | #6

Why short-term lets are a growing trend | Landlord Resources | #6

More than 165,000 property investors are generating income from their second homes by letting them out to holidaymakers, according to new research by an insurance firm.

And Property Division has uncovered a wealth of anecdotal evidence to suggest that a significant number of property owners are using their primary residence as a short-stay holiday let.

We know of a number of householders in the Wimbledon area who let their homes to players, officials and tennis fans for three weeks each summer when the grand slam tournament is taking place in SW19.

And the growth of websites such as HouseTrip and AirBnB – which connect users from all over the world who are looking for short-let accommodation – indicates the trend for generating income from holiday rentals is growing.

In fact, HouseTrip co-founder Arnaud Bertrand has said: “Our target audience is rapidly catching up to the fact that they’re getting great value by renting a home as opposed to staying in a hotel. I see a not too distant future where our category will be the most popular type of travel accommodation.”

Private landlords who jump on the home from home bandwagon need to be aware that they must get their short-term guests to sign a holiday letting agreement.

Holiday Letting Agreement Form

An Assured Shorthold Tenancy agreement forms part of a landlord’s raft of necessary paperwork. This is why Property Division is pleased to offer you a free AST agreement. Simply print off two copies, sign one and hand it to your tenants, then get your tenant or tenants to sign the other and hand that agreement to you.

However, ASTs do not cover agreements where tenants pay more than £100,000 in rent per year or when a limited company rents a residential property.

The latter often involves companies renting residential accommodation and letting the property to their employees, usually under a licence agreement (as opposed to a tenancy).

While the employee will usually pay rent and other costs to the landlord, ultimately the company is liable.

All content on this form and other forms for landlords published by Property Division are provided “as is”, with no guarantees of completeness, accuracy or timeliness, and without representations, warranties or other contractual terms of any kind, express or implied. Property Division does not represent or warrant that this letter or other material supplied by Property Division will be accurate, current, uninterrupted, error-free or omission-free.

TO THE FULLEST EXTENT PERMISSIBLE PURSUANT TO APPLICABLE LAW, PROPERTY DIVISION DISCLAIMS ALL LIABILITY TO YOU AND EVERYONE ELSE IN RESPECT OF THE CONTENT ON THIS SITE AND ALL SERVICES PROVIDED THROUGH IT, WHETHER UNDER ANY THEORY OF TORT, CONTRACT, WARRANTY, STRICT LIABILITY OR NEGLIGENCE OR OTHERWISE, AND WHETHER IN RESPECT OF DIRECT, INDIRECT, CONSEQUENTIAL, SPECIAL, PUNITIVE OR SIMILAR DAMAGES, EVEN IF PROPERTY DIVISION WAS ADVISED, KNEW OR SHOULD HAVE KNOWN OF THE POSSIBILITY OF SUCH DAMAGES.

The information presented on this site should not be construed as legal or any other professional advice or service. You should consult with a professional adviser familiar with your particular factual situation for advice concerning specific legal or other matters before making any decision.

Inventory

Creating and agreeing an inventory with your tenant could prove essential in the event of a dispute. When a tenant is about to sign a tenancy agreement, the tenant and landlord should inspect each room of the property together and, using an inventory, agree the condition of…

  • Fixtures and fittings, such as curtain rails, light fittings, carpets and the general decorative state of the property;
  • Any furniture included in the rent, as well as things like kitchen appliances;
  • Other household items included in the rent, such as kitchen utensils and cookware.
  • Any existing marks to walls, frayed edges of carpets, numbers of plates/pans/cutlery items, and other items that might be the subject of dispute should be noted on two copies of the inventory and signed by both parties, each of whom should then keep a copy.

When the tenancy comes to an end, the inventory should again be referred to by both parties. Any loss or damage that has occurred since the signing of the original inventory can be noted and deducted from the deposit paid by the tenant at the beginning of the tenancy.

All content on this form and other forms for landlords published by Property Division are provided “as is”, with no guarantees of completeness, accuracy or timeliness, and without representations, warranties or other contractual terms of any kind, express or implied. Property Division does not represent or warrant that this letter or other material supplied by Property Division will be accurate, current, uninterrupted, error-free or omission-free.

TO THE FULLEST EXTENT PERMISSIBLE PURSUANT TO APPLICABLE LAW, PROPERTY DIVISION DISCLAIMS ALL LIABILITY TO YOU AND EVERYONE ELSE IN RESPECT OF THE CONTENT ON THIS SITE AND ALL SERVICES PROVIDED THROUGH IT, WHETHER UNDER ANY THEORY OF TORT, CONTRACT, WARRANTY, STRICT LIABILITY OR NEGLIGENCE OR OTHERWISE, AND WHETHER IN RESPECT OF DIRECT, INDIRECT, CONSEQUENTIAL, SPECIAL, PUNITIVE OR SIMILAR DAMAGES, EVEN IF PROPERTY DIVISION WAS ADVISED, KNEW OR SHOULD HAVE KNOWN OF THE POSSIBILITY OF SUCH DAMAGES.

The information presented on this site should not be construed as legal or any other professional advice or service. You should consult with a professional adviser familiar with your particular factual situation for advice concerning specific legal or other matters before making any decision.

Over the next few weeks we will be sending you additional documents that cover:

  • Letter to Local Authority
  • Letter to Gas, Electricity & Water suppliers
  • Viewing Appointment Sheet
  • Property Details Sheet
  • Section 21 Notice Requiring Possession