As the owner of a short-term let company and a landlord to some long-term rents as Assured Shorthold Tenancies (ASTs), I have witnessed a significant shift in the rental market. With changing lifestyle preferences and evolving travel trends, the demand for short-term accommodation has soared. In this blog, I will present an expert’s viewpoint on why opting for short-term lets is a smarter choice compared to traditional ASTs. Let’s delve into the advantages of short-term lets and explore why they have become the go-to solution for modern tenants and landlords alike.
- Flexibility
One of the most compelling reasons to choose short-term lets is the unparalleled flexibility they offer. Unlike ASTs, which typically last for six to twelve months, short-term lets provide tenants with the freedom to choose their desired rental duration. Whether it’s a few days, weeks, or a couple of months, tenants have the flexibility to tailor their accommodation arrangements to their specific needs. This versatility is especially beneficial for professionals on short-term work assignments, tourists, or individuals awaiting the completion of a long-term rental agreement.
- Higher Rental Yields
From a landlord’s perspective, short-term lets can provide significantly higher rental yields compared to ASTs. With the rise of platforms like Airbnb, Booking.com, VRBO and other online booking platforms, short-term rentals have become an attractive investment opportunity. By targeting tourists, business travelers, and those in need of temporary accommodation, landlords can maximize their profits by charging premium rates for shorter stays. This increased income potential makes short-term lets a financially viable option, particularly in popular tourist destinations or areas with a high demand for temporary housing.
- Opportunity for Regular Maintenance
In traditional ASTs, landlords typically conduct maintenance and repairs during void periods between tenancies. However, short-term lets present a unique advantage in this regard. With guests regularly checking in and out, landlords have the opportunity to perform regular maintenance and keep the property in pristine condition. This proactive approach minimizes the risk of major issues arising and ensures that the property remains appealing to potential guests. In addition, the regular cleaning required between stays helps maintain a high standard of cleanliness, enhancing guest satisfaction and boosting the property’s reputation.
- Reduced Risk of Bad Tenants
One of the significant challenges landlords face with ASTs is the potential risk of problematic tenants. These tenants may cause property damage, pay late or even default on rent, resulting in financial loss and legal complications. Short-term lets, on the other hand, significantly reduce this risk. Guests booking short stays are less likely to cause long-term damage to the property, as their stay is temporary and closely monitored. Moreover, as payments are often made upfront or through reliable booking platforms, the risk of non-payment is minimized. The shorter duration of stays also allows landlords to assess and vet guests more frequently, ensuring they attract responsible individuals.
- Greater Adaptability in a Dynamic Market
The rental market is evolving rapidly, and short-term lets provide landlords with the adaptability required to navigate these changes successfully. With the growing popularity of remote work, digital nomadism, and the gig economy, there is an increasing demand for flexible accommodation solutions. Short-term lets can cater to these emerging trends by providing fully furnished properties with essential amenities, such as high-speed internet and home office setups. By staying attuned to market demands and adjusting their offerings accordingly, landlords can tap into new tenant demographics and maximize occupancy rates.
In a world that embraces flexibility and embraces new ways of living and traveling, short-term lets have emerged as a more attractive alternative to traditional Assured Shorthold Tenancies. The flexibility they offer, higher rental yields, regular maintenance opportunities, reduced risk of problematic tenants, and adaptability to changing market dynamics make short-term lets an appealing option for both tenants and landlords alike.
As a short-term let company owner, I have witnessed the positive impact that this accommodation model can have on both the bottom line and the tenant experience. Embracing this shift and exploring the potential of short-term lets could prove to be a game-changer for landlords looking to thrive in the ever-evolving rental market.
