by Luke Edwards
For those of you that have more than one property, your first consideration tends to be what are you going to do with the property?
Most people tend to let out their additional properties either on a long term let or short term let basis.
Below we define what each of these really mean and what the benefits of each approach are for you.
Short term letting is classed as any property let out for no more than 6 months at a time. You see this mostly in holiday and self-catering accommodation where properties are booked anywhere from 1 night up to 1 month at a time.
The potential income you can make through a short term let is unlimited in comparison to long term letting. Long term letting is exclusively priced on a monthly basis, short term lets are priced weekly or daily and fluctuate throughout the year. The success of your short term let ultimately depends on the level of bookings you receive.
Short term lets can benefit from more significant tax benefits in comparison to long term lets. Click here to read more information about this https://www.menaiholidays.co.uk/blog/a-guide-to-furnished-holiday-let-taxation/
Many people who have second homes want to be able to enjoy their property also. Short term letting allows that flexibility, you can use it as much or as little as you want. The choice is always there.
With short term letting, your own usage allows you to keep an eye on your pride and joy. You can also use of your own usage time to carry out essential maintenance and repairs to keep the property looking fresh.
With long term letting you are relying on the tenants to keep the property up to standard and report faults etc as they occur.
Long term lets are generally those that last 6 months and longer. Long term letting is primarily used for when people are seeking a permanent home.
Long term letting can offer something that short term letting simply can’t, a guaranteed income. For many people the safety of a guaranteed is income is important, especially if they have a mortgage to pay on the property.
For short term letting we can estimate how much a property can make on average in a year, however this is only an estimate and will ultimately depend on a number of factors such as number of bookings and availability of the property.
With long term letting all the additional costs such as council tax, utility bills, contents insurance are normally covered by the tenant. This isn’t the case with short term letting, you will need to cover this. However, you can claim council tax relief as mentioned above.
Both long term and short term letting will require your input. However, long term letting should require less of your time. Your tenants will most likely take care of the upkeep of the property, you will just need to ensure all the health and safety compliance matters are dealt with as and when required.
With short term letting your having to deal with constant changeovers and regular maintenance and repairs. However, at Menai Holiday Cottages we have management options which can take of all of this for you!
Below we have summarised the main advantages and disadvantages of both approaches.
Find out more about how we can work together and maximise your holiday let income. We are a local brand with a national reach and have over 36 years' experience in self-catering holidays in the UK.
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Find out how we can work together. With over 25 years’ experience, our local expertise will give you peace of mind and bring you the bookings you deserve.
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