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.
Free download #1
This straightforward form that Property Division is giving you this month must be used by property owners who let out a furnished home for a short fixed term up to a maximum of three months.
Because this legal document is specifically excluded from the Housing Act 1988, tenants have no security of tenure and must vacate the property at the end of the fixed term, or if found to be in breach of the terms of the holiday letting agreement.
The free download not only makes it simple and quick to remove guests who refuse to leave or cause damage to your property, it also covers…
- Details of the rent amount and how it is to be paid.
- The deposit amount being taken from the guest.
- The tenant or tenants’ obligation to keep the property in good condition.
- The landlord’s access.
- The landlord’s obligation to insure the property.
- The inventory of the property.
- What happens at the end of the holiday let period.
Holiday Letting Agreement Form
Print two copies of your Property Division holiday let agreement download, complete them both, ensure both copies are signed by you and your tenant, keep hold of one copy and hand the other to your tenant at the start of the holiday let period.
The Property Division holiday letting agreement above is governed by the law of England and Wales. However, we do not guarantee that this document is suitable for your circumstances and advise that you should seek professional advice to discuss your specific legal situation.
What is an inventory and why do I need one?
Whether you are letting out a property as a short-term holiday home or to long-term tenants, one of the most important and valuable things you can do before you sign up your first tenant is create an inventory.
Free download #2
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.