Lets Look at Short Term Holiday Lets & Serviced Accommodation
Why Short Term Holiday Lets and Serviced Accommodation?
The New Hot Trend for Property Investors
Introduction to Short Term Lets & Serviced Accommodation
The property investment market is changing and short term lets are now becoming a hot trend among property investors. This is mainly due to the recent changes in legislation within the lettings market, as well as the potential for higher yields. Short term lets and serviced accommodation properties are offering investors a unique opportunity to capitalise on the growing demand for flexible accommodation, while also providing guests with a more affordable and convenient alternative to traditional hotels. In this blog post, we explore the reasons why short term lets are the new go-to for property investors and what makes them so appealing in today's market.
Higher Yields
As changes in legislation continue to impact the traditional buy-to-let market, landlords and property investors are increasingly turning to short-term lets and serviced accommodation as a way to generate higher yields. Short-term lets offer a flexible and profitable alternative to long-term rentals, and with the rise of platforms like Airbnb, it’s easier than ever to attract guests and generate income. In fact, some property investors are reporting returns of up to 30% on their serviced accommodation properties, far outstripping the returns available in the traditional buy-to-let market. So if you’re looking to get into property investment, it might be time to consider the potential of short-term lets and serviced accommodation.
Less Legislative Burden
One of the main advantages of investing in short term lets and serviced accommodation properties is the reduced legislative burden that landlords face. Unlike traditional long-term rentals, where there are strict regulations around deposits, evictions, and tenancy agreements, short term lets offer more flexibility and freedom.
This is because short term lets are not covered by the same regulations as long-term rentals, such as the Tenant Fees Act and the upcoming ban on Section 21 notices. Landlords can therefore save time and money on legal fees, and avoid the risk of penalties for non-compliance.
Furthermore, short term lets and serviced accommodation properties are often let through platforms such as Airbnb, which have their own set of rules and regulations. However, these tend to be less onerous than those governing traditional long-term rentals, as they are designed to be more user-friendly and flexible.
Overall, the reduced legislative burden of short term lets and serviced accommodation properties is a key factor driving their appeal to property investors. With less red tape to navigate, landlords can focus on generating higher yields and maximising their returns.
Increased Flexibility
One of the main advantages of investing in short term lets and serviced accommodation properties is the increased flexibility that comes with this type of rental. Unlike long term leases, short term lets give you the option to change the rental terms at a moment's notice, allowing you to adapt quickly to market conditions and capitalize on changing trends.
For example, you might find that a particular area is experiencing a sudden surge in tourism, with large numbers of visitors looking for short term accommodation. In this scenario, you could easily switch your rental model to offer shorter term lets to take advantage of this increased demand, potentially boosting your income and maximizing your return on investment.
Likewise, if you find that a certain type of property is particularly popular with a certain demographic, you can easily reconfigure your rental strategy to target this market specifically. This flexibility means that you can adapt quickly to changing market conditions and maximize your earning potential, making short term lets and serviced accommodation properties a smart choice for investors looking for long term profitability.
Greater Potential for Capital Growth
Another reason why short term lets are becoming more appealing to property investors is due to the potential for greater capital growth. The nature of short term lets means that they can generate more income than traditional long term lets, allowing for a quicker return on investment.
In addition, short term lets are often situated in desirable locations such as city centres or tourist hotspots, which means they are more likely to see a rise in property values. This can be particularly lucrative for investors looking to make a long term investment as the potential for capital growth can be significant.
Moreover, with the increased popularity of short term lets, there is a growing demand for high-quality, well-maintained properties. By investing in such properties, investors can not only benefit from the increased income but can also attract a wider pool of potential renters and achieve higher occupancy rates.
It is important to note that investing in short term lets can come with risks, such as seasonal fluctuations in demand and the need for regular maintenance and cleaning. However, with careful research and investment, short term lets can provide a strong return on investment and attractive opportunities for capital growth.