Posts with tag: short-term lets

Short-Term Lets vs. Long-Term Lets

Published On: April 16, 2019 at 9:29 am


Categories: Lettings News

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By Marc Trup, the Founder and CEO of Arthur Online

In a city that hosts around 15m tourists each year, short-stay rentals are not a new phenomenon for London. However, with the rise of marketing portal Airbnb, there is now a growing number of landlords who are choosing to offer short stay rentals over traditional long-term lets. 

A big reason for their increase in popularity is due to short-term lets being able to achieve much higher rental returns for landlords than longer-term lets. On average, short-term lets can bring a massive 30% more in returns than the same property being let on a long-term tenancy. However, unless you have another stable revenue stream, it’s best not to rely on short-term lets as your sole source of income. They can be unpredictable, and, while returns can be greater, there is a risk of actually losing out on income due to the number of void periods. 

While there is greater flexibility, through the greater turnover of tenants, there is a bigger chance of things being damaged in the property, and therefore more maintenance issues. If you are looking to get into short letting, be prepared for a more hands-on approach to property management. Responsibilities will include: cleaning, handling check-ins, dealing with general tenant queries and issues, as well as maintenance of the home.

It is also worth noting that the success of short-term lets is heavily dependent on where your property is located. Highly desirable areas, and areas popular with tourists, are much more likely to have success as a short-term rental. If your property isn’t situated in an area which receives a high volume of visitors all year round, there is a risk that you will face long void periods. Rent from short-term lets is not as easily guaranteed as for longer-term tenancies. On top of this, even while your property isn’t occupied, you will still have to pay for the running of the property, e.g. gas/electric bills and insurance costs.

For homeowners who want to make some extra cash from their property during high season, short-term lets are a good way to go. However, for the full-time landlord, a more cautious approach may be more appropriate to help limit the amount of void periods in the property. 

Short-Term Lets vs. Long-Term Lets

It is also possible to try a combination of the two and offer both short and long-term lets. This will enable you to charge higher rent prices during high season and, for the rest of the year, your property will be occupied by a long-term tenant. You will also need to check with your mortgage lender that your policy allows you to take on short, as well as long, term tenancies. Even if you have a buy-to-let mortgage, many lenders require a tenancy agreement to be an Assured Shorthold Tenancyof at least six months. 

In spite of their new popularity, short-term lets are unlikely to replace long-term lets anytime soon. Long-term lets offer consistency – a guaranteed income for a set period every month. With long-term lets, you are more likely to get professional tenants who treat your property like a home, instead of holidaymakers who may care less about the condition they leave your property in. 

Marc Trup is the Founder and CEO of Arthur Online 

After selling his business to BUPA in 1998, Marc started investing in rental properties in London. Over the next 15 years Marc grew his portfolio to over 85 properties. While successful, self-managing his portfolio became increasingly difficult. With technological advances and greater connectivity, he assumed there was software available that would allow him to manage his business from his smart phone, while sipping espresso at the local coffee shop. Following a long search, he found that nothing quite cut the mustard. So being an entrepreneur, he started Arthur Online to make not only his life easier, but also that of other property managers. 

Arthur Online is a cloud-based platform that enables property managers to respond instantly and solve problems fast from anywhere in the world, be it with tenants, contractors, property owners or letting agents. Since launching in 2015, it has helped thousands of property managers like Marc run their portfolios in the cheapest, most efficient way possible by using the full potential of new technology and cloud computing. Start your free trial today by going to

Landlords Making 2.5% More Per Month Through Short-Term Lettings

Published On: April 15, 2019 at 8:00 am


Categories: Landlord News

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With talk of the short-term lettings industry booming and many changes forcing landlords out of the traditional lets sector, we spoke to Akash Sharda, the CEO and Founder of short-term rental management firm Spothost, to find out more about the market. 

It is claimed that landlords can earn significantly higher rental yieldsin the short-term lettings industry than letting their properties to long-term tenants. But how true is this?

Indeed, Sharda claims that Spothost’s data reveals that landlords can earn 2.5% more per month from short-term lettings, compared to traditional lets. 

However, he warns of inconsistencies: “Just like the long-term letting market, yields are poor in certain areas of the country and there is a similarity in the short-term rental market, too. Typically, yields tend to be better in the short-term rental market in comparison to the private rental sector. A number of considerations need to be taken into account, such as paying for bills, Council Tax, wifi, etc., which are all additional expenses and need to be paid for by the landlord.”

Nevertheless, these extra costs can benefit landlords when calculating rent prices on short-term lets. Sharda explains: “As these fees lie with the landlord on a short-term letting model, it means that they need to factor in the maximum usage, which will effectively allow them to decide on an appropriate nightly rate for the property. The key word being here is maximum usage. During the summer months, heating typically isn’t needed and therefore bills are much lower. Those savings are then passed onto the landlords.”

But, aside from strong rental yields, there are other benefits to the short-term lettings sector.

Landlords Making 2.5% More Per Month Through Short-Term Lettings

Sharda picks out the points that could appeal to landlords moving away from the traditional market: “They can expect a much higher standard of property maintenance, as the property is inspected several times a month and cleaned to a high standard. In conventional long-term lettings, the majority of the time, landlords need to re-paint walls or replace furniture after the end of contracts. 

“They also have greater flexibility over their property, meaning that they can book it out for their own use if needed.They have no long-term ties or commitments. In a long-term tenancy, the new laws allow tenants to almost become a permanent resident in the property, meaning it could be very challenging to evict tenants.”

Sharda believes that it’s legislation that is causing landlords to move into the short-term lettings industry. He claims that, with more favour towards tenants in the traditional rental market, landlords will consider the change. 

With the tenant fees bandue for introduction in England in less than two months’ time, the short-term lets sector could see an influx of investors from the private rental market, Sharda adds.

“The tenant fees ban was another money making exercise for agencies and landlords, therefore, once this become illegal, more people will look at how to recoup this extra income,” he says.

So, if you’ve decided that you’d like to take advantage of higher returns in the short-term lettings sector, how should you change your investment strategy?

Sharda gives his advice: “Landlords will need to make sure that they are buying properties in popular tourist locations to maximise their return on investment.  Appropriate insurances and mortgages need to be put into place, as this type of letting is much different to the traditional long-term letting, and landlordsmay also need to seek management agencies to help manage their rental.”

Short-Term Lets in Liverpool Offering Yields of Up to 30.7%

Published On: March 20, 2019 at 10:32 am


Categories: Landlord News

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Landlords who own properties in Liverpool or Manchester could potentially achieve yields of up to 30.7% on short-term lets, according to Portico Host.

The short-term letting agency has conducted research on short-term lets in the two cities, finding that landlords in Walton, Liverpool are achieving the highest short-term let rental yields, at an average of 30.68%, which compares to 7.88% for those letting longer-term rentals.

Walton is located on the outskirts of Liverpool city centre, and is a diverse and longstanding residential area. House prices here are cheaper than in other Liverpool postcodes, which enables landlords to achieve stronger yields.

The highest long-term rental yield in Liverpool or Manchester can be achieved in Fairfield, Liverpool, at an average of 12.52%. 

The short-term lets return is based on an occupancy rate of 60% of the year, which is typical for this type of property, due to seasonal demand.

Of the top ten best performing locations for short-term lets in Liverpool and Manchester, the top five are in Liverpool postcodes L4, L6 and L7.

In Manchester, the highest short-term lets return can be found in Hulme (M15), at an average of 17.4%.

Rachel Dickman, the Regional Manager of Portico Host, says: “It perhaps isn’t surprising to find that the properties that are achieving the greatest returns are those that are situated in areas surrounding Liverpool and Manchester city centres. These places typically have excellent transport links, proximity to popular tourist attractions, employment hubs, and good restaurants and cafes.

“Liverpool is becoming increasingly popular on the tourist trail, with 1.34m people visiting the city in 2018, and with business travellers, students and young professionals. A growing number are wanting to stay in short-term let properties, and the increased demand for this type of accommodation is underpinning the rents that can be achieved.”

There are currently 10,200 active listings in the North West on Airbnb, according to the short-term lets site’s latest insight report. The study also found that Airbnb has brought in almost £37m for the North West’s economy.

Portico’s Emma O’Rourke comments: “Good news also for landlords is that mortgage lenders are waking up to the popularity in short-term lets, although they do remain cautious of the risk it poses to their balance sheets.

“Last year, one lender launched a mortgage aimed specifically at Airbnb hosts, and landlords who want to rent out rooms in their home for short and ad-hoc periods. We expect high street lenders to follow suit with more mortgage products for these types of properties coming to the market, making it easier for people to let a property in the short-term.”

Landlords, does this encourage you to invest in the short-term lets sector? 

Just 3% of Landlords Offer Short-Term Lets, NLA Finds

Published On: February 25, 2019 at 11:00 am


Categories: Landlord News

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Just 3% of landlords currently offer short-term lets on their properties, according to the latest Quarterly Landlord Panel Survey from the National Landlords Association (NLA).

The report, which covers the fourth quarter (Q4) of 2018, found that, of those landlords that do not offer short-term lets, an overwhelming majority have not considered entering the market, with only 24% of the 494 respondents considering it at some point.

Short-term lets, which range in length from one night to around six months, have increased in popularity in recent years, due to the success of websites such as Airbnb. Landlords can generate a significant income from letting their properties in this market.

However, landlords must be aware that offering short-term lets could breach their mortgage terms and invalidate their existing insurance policy, so it’s vital for them to be aware of the problems that it could present.

Just Landlords is proud to offer its 5 Star rated Landlord Insurance for short-term lets:

Richard Lambert, the CEO of the NLA, says: “We had expected to see a slight increase in the number of landlords letting furnished holiday properties after changes to taxation were introduced in April last year. While this has not been the case for most of the UK, it is worth noting that 20% of landlords in Scotland do offer short-term lets.  

“Holiday lets are treated very differently to other property portfolios in tax and regulatory terms – the decision to switch may be a no-brainer for landlords in areas where there is strong demand from temporary visitors, particularly as there is are no real downside and nothing holding them back from doing so.”

He continues: “However, a shift of properties in a concentrated area to shorter-term letting can have a significant effect on the local rental market, reducing available properties and pushing up rents. There will always be unintended consequences when policymakers don’t make the effort to understand landlords’ motivations and behaviour.” 

Are you interested in the short-term lets sector? 

Fresh Calls for Restrictions on Airbnb-Style Listings

Published On: November 2, 2018 at 9:59 am


Categories: Lettings News

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Fresh calls have been made for restrictions on Airbnb-style listings in the rental sector, just days after the Irish Government announced plans to introduce a new set of laws to address short-term lets promoted through the platform.

The Irish Government has proposed regulations for Airbnb, which will come into force in June 2019. The regulations aim to prevent landlords from favouring short-term rental contracts and to keep their properties in the long-term lettings market.

Ireland’s Department of Housing stated: “The purpose of these changes to the planning code is primarily to address the longer-term rental issues arising from the use of properties for short-term letting.

“This is an unregulated activity, it is not home-sharing as it is typically understood, and in a time of housing shortage, it is unacceptable that rental homes would be withdrawn from the letting market, particularly in our cities and large towns where rents are high and supply is still constrained.”

Berlin, Barcelona and Paris have all passed measures to regulate similar issues. However, the UK is yet to. Newcastle City Council insists that this needs to change.

The council is concerned that far too many properties are being rented on a short-let basis in the city, mainly through Airbnb.

The platform currently operates a 90-day limit on the length of time that a property can be let in London, but there are no such restrictions outside of the capital.

A meeting of Newcastle City Council’s Planning Committee heard that restrictions would stop homes being constantly let to tourists, including hen and stag parties.

The Assistant Director of Planning at the council, Kath Lawless, said that there was “a need nationally to look at this issue”, as the council was “constrained” by Government legislation.

Neil Cobbold, the Chief Operating Officer of proptech firm PayProp UK, said that he was surprised that the Chancellor did not announce a clampdown on Airbnb-style listings, in his response to this week’s Budget statement.

What makes for the Best Airbnb Investment?

Published On: October 23, 2018 at 8:55 am


Categories: Landlord News

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By Marc Trup, the Founder and CEO of Arthur Online

Airbnb describes itself as “a trusted community marketplace for people to list, discover, and book unique accommodation around the world”. For all intents and purposes, it’s truly living that definition. Currently active in 65,000 cities across 190 countries and constantly expanding, this £23 billion behemoth has completely taken over the short-letting marketplace. Before Airbnb began in 2008, a short-term rental could get quite complicated: advertising, making payments, carrying out viewings, dealing with disputes; these processes that made running short lets prohibitive have been simplified by Airbnb, making short letting accessible to the masses.

It’s easy to see why they’ve enjoyed such a meteoric rise, short letting is THE hot topic in property investing at the moment, with many in the UK, London in particular, seeing it as the only viable rental business model in a world where chronic supply shortages and unrestricted international demand have driven house prices to record highs, crushing yields in the process. Consult the website of any Airbnb hosting company and they will likely estimate that you can earn two to three times more from your property by using Airbnb compared to standard rents.

No one can question the opportunity, but how can you make the most of it? With hotels and other pressure groups unionizing to protect their markets, this is even more pressing; the Airbnb gold rush is unlikely to last forever.

Build trust

What makes for the Best Airbnb Investment?

What makes for the Best Airbnb Investment?

One thing that all successful hosts have in common is positive reviews. As with everything that’s driven the sharing economy revolution, the entire premise of Airbnb is built on trust. Why would you invite a stranger or group of strangers from another part of the world into your home if you didn’t trust them? Or, more importantly, why would they trust you? That’s why getting positive reviews is of the utmost importance. If you’re just starting out, a few bad reviews can destroy your reputation and cut short your venture. But getting good reviews means more guests and, ultimately, more profit. And it really isn’t that hard, just common sense and being considerate (put yourself into your guests’ shoes):

  1. Give accurate and honest descriptions and pictures – no one likes a nasty surprise, least of all on holiday or away from home
  2. Communicate with your guests before arrival so they won’t be wondering whether they can even get in, particularly concerning after a long journey
  3. Check in on guests and, at the very least, check in after the first night – not just for your peace of mind, but to iron out small issues. Most issues only come to light after the first night, like connecting to the Wi-Fi, turning on the hot water, etc. Checking in also shows that you care about their experience
  4. Keep it clean – make sure the property is clean and ready for when your guests arrive. It’s obvious that clean sheets and a nice smell will have a positive impact – don’t miss out on this easy win. For longer bookings, you should consider offering cleaning services during the stay

Find the right location

The location of an Airbnb is one of the most important factors for success. Some investors have used Airbnb to take advantage of the differences in the cost of living between countries. The low cost of living in many tourist destinations can be translated to huge returns. In Bali, it’s common to find US expats who have bought a property on the island for the equivalent of a rental deposit in the US, fixed it up and hired someone based locally to manage it on Airbnb, earning a return they could only dream of back home.

Similarly, Airbnb investments in Auckland, New Zealand have proven to work out as great investments, with many hosting companies cropping up in the area. The median price to rent an Airbnb apartment in Auckland is about £100 a night – one of the highest in the world – and the city enjoys high occupancy rates.

Las Vegas is another location for prosperous Airbnb properties. As one of the most popular cities in America for tourism, many come to the city with the intention to spend big and are often happy to splash out on an upmarket Airbnb on the strip. The high earning potential cancels out the transient lodging tax that hosts are required to pay.

Top tip: If you do decide to get a remote Airbnb investment, its best to use one of the new generation of cloud-based property management platforms to keep an eye on your portfolio from anywhere in the world. Arthur Online offers one such service, enabling property managers to respond instantly and solve problems fast, be it with guests or hosting agents.

Be non-seasonal

Many Airbnbs are seasonal, with peak periods during the summer and few bookings in winter. Peak season earnings of beach houses in Spain or Portugal don’t quite make up for off-season lulls. Instead, properties that are unaffected by seasonal changes, in cities, for example, make money all year round and earn higher average returns.

Price competitively

Charging more may be tempting, but the consequent lower occupancy rates will negate any gains. Just because tourists make up most Airbnb guests, doesn’t mean they are willing to pay tourist prices. Millennials and generation Z have been quicker to embrace home sharing than other demographics; over 60% of all bookings on Airbnb have been made by millennials. The downside is that young people often travel on a tight budget, choosing Airbnb over a hotel for just that reason. For an Airbnb host to be successful, the price needs to match the expectations of the target market and the competition, which isn’t just hotels, but other Airbnbs in the area.

Marc Trup is the Founder and CEO of Arthur Online

After selling his business to BUPA in 1998, Marc started investing in rental properties in London. Over the next 15 years, Marc grew his portfolio to over 85 properties. While successful, self-managing his portfolio became increasingly difficult. With technological advances and greater connectivity, he assumed there was software available that would allow him to manage his business from his smart phone, while sipping espresso at the local coffee shop. Following a long search, he found that nothing quite cut the mustard. So, being an entrepreneur, he started Arthur Online to make not only his life easier, but also that of other property managers.

Since Arthur Online launched in 2015, it has helped thousands of property managers like Marc run their portfolios in the cheapest, most efficient way possible by using the full potential of new technology and cloud computing. Start your free trial today by going to