How Letting Your Holiday Rental Short Term Can Earn More
Wednesday 11th March, 2020 by Host & Stay
The short term market has boomed over recent years and the demand of holiday makers looking for short term stays in the UK doesn’t seem to be slowing down any time soon.
For a lot of property managers and homeowners, it can be confusing. Why would anyone choose to deal with the headache of short term letting? Having to deal with the constant stream of guest communications, guest reviews, changeovers and guest payments can be a lot of work. Why don’t people simply rent their property long term instead?
The answer isn’t so straightforward. In truth, both options have their own challenges and benefits. It’s about finding which route suits you best.
The Quick Changeover of Short Term Holiday Rentals
Short term holiday rentals need fast turnarounds. As you’ll have guests regularly checking out and checking back in, this involves a lot of preparation and changeovers.
It also means that you won’t have a lot of time to get to know the guests very well before they arrive, which can be a concern for some homeowners. After all, you’re entrusting your property to people you don’t know. This can be a worry, regardless of how long the guests are staying for.
Then there is everything else that goes with it. It can seem never ending – managing guest contact details, organising calendars to avoid double bookings, adjusting pricing, processing payments, constant guest communications, organising cleans. The list goes on and on.
Plus it’s worth noting that all of the above can only take place once you’ve got bookings. Securing bookings involves constant strategic marketing which in itself can be another tricky and time consuming task.
So you’re probably now thinking why would I choose to let my property short term? Well long term letting has its shortfalls too.
The Commitment to Long Term Letting
One tenant for a long period of time sounds like a breeze. You won’t need to deal with changeovers, recruitment or impressing every person that walks through the door. Long gone is the constant footfall of new people. But with that comes the daunting realisation that you could find yourself stuck in a binding contract when things aren’t right.
To reduce the chances of this happening, you’ll need to find the right tenant. This in itself can be a long and laborious job. It can become draining trying to find the ideal person to stay in your home for an extended period of time. So although temporary guests may not always be the most polite, short term holiday let managers can feel safe in the knowledge that their stays are always brief.
Another intimidating thought is that you’ll give up a lot of control when you hand the keys over to a long term tenant. When you have guests staying for short stays, you have the freedom to inspect the property between every guest so if there ever was an issue, this can be flagged quickly. However, long term rentals are entrusted for months at time, if not years.
Some long term tenants also expect some freedoms when it comes to the designs within the property. They’re staying for a while and it’s going to become their home so for some people, they’d like to put their own stamp on the place.
Long term rentals also don’t provide the luxury of convenience. A lot of homeowners who use their property as a short term rental would like to stay themselves every now and again. This allows them to enjoy their property when they want to but also profit from the rest of the time they’re not there. Renting your property out long term doesn’t give you the same flexibility to do this.
Of course, every negative aspect of one option is a positive of the other. So if there isn’t a clear and obvious decision jumping out at you, there is one more factor which could make your choice easier.
There is a notable discrepancy between short term and long term letting, and that notable discrepancy is earnings.
According to The Telegraph, short term rentals can bring in roughly 30% higher profits than long term rentals. This is because short term rentals are short-lived, one time expenses so the price can be significantly inflated and people are happy to pay it. Whereas long term rentals are essentially a realistic rental price reflective of the real estate market.
Our holiday homes and apartments are earning upwards of £24k per year so the return is considerably higher than that of long term letting.
So in conclusion, short term letting may need more involvement but when it comes to the financial return, it’s well worth the investment.
Why not take away the burdens of short term holiday letting and just reap the benefits? Join Host & Stay and we’ll manage all of it for you so you can enjoy a completely stress-free, hands free experience. Our fully managed service includes all guest messaging, payments, reviews, marketing, changeover and linen.
CONTACT US TODAY AND START EARNING MORE