In the last few years, short-term lets have surged in popularity. Short-term letting platforms have made it easier than ever for landlords to rent out properties to holidaymakers and business professionals. And whilst the potential rewards can be appealing, there are also important factors to consider before getting started. Let’s take a look.

Understanding the Legal Obligations

Before converting a property into a short-term let, it’s essential to check local council regulations. Some areas, particularly tourist hotspots, now require planning permission or impose limits on how many nights a property can be let per year. Failure to comply could result in fines or restrictions, so it’s important to do your homework. You can also check specific local rules via your local authority – for example, Nottingham City Council if applicable.

Insurance and Mortgage

Standard landlord insurance policies often don’t cover short-term letting. It’s worth reviewing your cover to ensure you’re protected against potential risks such as guest damage or liability issues. The Association of British Insurers has useful guidance on what to look for.

Similarly, your mortgage lender may have conditions regarding holiday lets, so it’s always best to check your terms or speak to your provider to avoid breaching your agreement.

Guest Turnover and Property Management

Unlike long-term tenancies, short-term lets involve frequent guest changeovers. This means more cleaning, maintenance, and communication – especially if you’re managing bookings and enquiries yourself. You can explore tips for managing these tasks via Airbnb’s Host Resource Centre.

Some landlords also choose to work with professional services or companies registered with the Short Term Accommodation Association (STAA) to reduce stress and ensure a smooth experience.

Financial Implications

Short-term lets can generate higher income during peak seasons, but they can also be unpredictable. Void periods, fluctuating demand, and seasonal downturns are all worth factoring into your budget.

Don’t forget, you’ll also need to handle utility bills, council tax, or potential tax obligations. It’s wise to review HMRC guidance and understand how holiday let tax rules differ from traditional buy-to-let.

Thinking About Short-Term Letting?

If you’re a landlord considering whether short-term lets could work for you, we’re here to help. From understanding local regulations to preparing your property for guests, we can guide you every step of the way. Get in touch with our expert lettings team today to explore your options.