Assured Shorthold Tenancy vs Short Term Lets

Residential Estates' Developments Acquisitions Manager, Paul Winder talks to Rob Jones, founder of propertyinvestmentsuk about the differences between assured shorthold tenancy and short term lets. They discuss how Residential Estates started in the short term let market and how to successfully invest in short term property.

What is the difference between an AST and a STL?

The short-term property rental sector is growing year on year right now, demand is high and supply is increasing to keep up but many property managers and investors are wondering if it’s worth it. Short term lets are, no doubt, a ton of work. With new guests coming in and out all the time, a (hopefully) constant stream of inquiries to address and regular cleaning and preparation tasks, so is it worthwhile?

What is the income and rent comparisons between AST and STL?

A short-term let is usually property that is being offered to the market for six months or less. Tenancies ranging from 6 months to a year are commonly marketed as medium-term rentals, with both attracting a very different type of customer/tenant and income potential. It’s not about one letting strategy being “better” than the other – it’s often simply about finding out which one is best for you, your property, your plans, and your current situation.

Is serviced accommodation the same as Short term lets?

There are a couple of differences between serviced accommodation and short term lets, primarily the type of tenant that type of accommodation is focused towards. While short term lets are typically advertised as holiday lets, serviced accommodation is more similar to the hotel model and may be used for business or corporate stays. 

How did Residential Estates get started in Short term lets?

In this video, Paul shared their journey on how Residential Estates got started in short term lets, growing from managing short-term tenancies ranging from 6 months to a year and medium-term rentals, to have a team dedicated and thriving with providing short term stays to the corporate market.

Do short term lets require special attention and regulations?

You may wish to rent a room or your entire property to a guest for a short period of time. However, it’s not quite that simple and it’s helpful to understand how short term lets operate. The definition of short-term rental can vary based on several key factors and different locations and property types have different considerations.

In property investment, are you restricted to just short term lets when buying a property?

If you are considering entering the short-term rental market in 2020, you may be wondering if it is right for you. The fact is that investing in short-term rentals has its own advantages and drawbacks. However, the impact will depend on you, the property you are buying and the situation you are in.

What is a good location for a short term let?

Supply and demand. The age-old match for any marketplace. Renting property is no different. Location is a key driver for providing consistent demand. But what are the best locations? Should you go big and focus on the centre of a key city like London or Manchester? Or go to the other extreme and aim for a rural pad in the country for holiday stays? Of course, there are many factors to this. Budget, property types, target market, and even time frame and exit strategy.

How easy is it to find management companies for short term let properties?

If you’re interested in owning and growing a short term let property portfolio, then you may not wish to self manage and be on call all day every day so securing the right management agent is key. But how easy are they to find? What should you look for? Is it as straightforward as finding any letting agent or do you need a specialist?

How might COVID impact the short stay property market?

The ongoing coronavirus pandemic has had an effect on everyone, all economies and industries and particularly stark effect on the short-term rental market, given its reliance on travel, business, holidays, city breaks and staycations. The industry, still relatively young in comparison to the traditional long-let market, is trying to combat the worst ramifications of the crisis in various ways.

Selecting A Suitable Short Term Let Property - What Happens Behind The Scenes?

There are lots of steps with selecting the right short term lets, it’s not as simple as picking any property in any area. Nailing down a viable business plan is a crucial first step for landlords after selecting a suitable short term let property, so what happens next? In today’s videos we look at the starting points, what happens behind the scenes from property selection to management agent when selecting your next short term let to achieve your end goals.

The future for short term let properties

The short-term rental industry has come a long way however it is still growing and not yet at a mature phase. So what is the future for the STL industry? Once mainly for holiday property owners with a few properties, now many landlords are considering STL’s for all kinds of properties from terraces to apartments and in all locations from seasides to city centre, with many now starting to add short-term rental properties to their portfolios.

How do short term lets compare to other property strategies?

Property owners utilising short-term lets/rentals have lots of flexibility compared to any other rental strategy. Of course, the main reason is often to improve rental income and rental yield however it also gives you as the owner the benefit as renting out as a long term let in the future on an AST and also if you wish to use your investment property for personal use and can block out availability for themselves, friends and family if you wanted as a holiday or mini-break.

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