With the booming trends of short-term lets and holiday lets in London, the time may come when you want to make your city postcode work for you for a while. While the success of new online platforms makes this relatively easy, it is worth considering in detail the opportunities in this sector and what is required. Aussie’s services in London can be a valuable partner for your enterprise as we offer various services to landlords and hosts in the city. These eight points form a guide to renting out your London home.
- Short-term or long-term let?
- Short-term benefits and considerations
- Long- term benefits and considerations
- Landlord obligations for longer-term lets
- Wear and Tear
- Outsourcing the management
- Aussie services
Short-term or Long- term?
This is an important question for you to consider. Are you renting out your place for a secondary income, how serious are you about making money from it? How much do you have to invest in the space and interior? How much time do you have to be involved in managing the requirements of your guests or tenants?
Short-term rental benefits
- Easy to get going on platforms like Airbnb, Vrbo, and Booking.com
- Platforms instantly handle money, insurance, and advertising
- You can ask for more money if you create a desirable location
- Flexibility of schedule – you manage your own calendar
- Rewards and fulfillment of working in the hospitality sector
- Worldwide audience through online platforms
- 90-day Airbnb limit on London postcodes
- Rating systems require high-level engagement and hosting performance
- Requires a professional team on hand to help
- Interiors require upgrading and improving to a professional level of service
- You will need an insurance add-on to your home insurance for full cover
- Factor in utility bill costs to your listings rate
A short-term let pitched in the hospitality industry of Airbnb and Vrbo, will require a certain level of service and engagement. Preparing your listing for guests will involve factoring in cleaners and handymen if you are not going to take care of this yourself. If you want to manage this remotely, Aussie has a range of services that can assist you.
Long term benefits
With a long-term let, your tenants will take on the utility bills and council tax themselves. You can choose to furnish or unfurnish your property, and tenants will select your home according to their needs. An estate agent can value your property to give you an asking price. At this stage, you are not a host, but a landlord, and there are various considerations to factor in.
- You will need to put in place landlord insurance
- You are obliged by law to place your tenant’s deposit in an official Deposit Scheme
- You will need to draw up a contract yourself, or use an agent
- Gas safety certificate
- Energy Performance Certificate
- Carbon Monoxide and Smoke Alarm
- Inventory prior to rental
Estate agents can manage your rental with varying degrees of involvement. If you prefer to be more engaged with your tenants and property Openrent is a platform where you can list a property for free or utilize their various packages and guidance for first-time landlords. They offer packages through which you can reach the wider market of Rightmove and Gumtree as well as their own site. Furthermore, they have a host of articles to help fledgling landlords and step-by-step instructions. If you choose their Rent Now package, they handle the contract, and security deposit and remind you about the other requirements. Depending on the size of your property you may be required to comply to further fire safety regulations.
Wear and Tear
Depending on your rental period, you will have to factor in wear and tear into your business model and pricing. If you are running an Airbnb or holiday let with a quick turn over, you will need skilled people on hand to fix anything that breaks before the next booking. Often its this short time margin that creates stress and extra expenditure. Having a reliable team of handymen and cleaners is going to pay for itself in the end. These services will all count as valid business expenses. Airbnb has a resolution centre, where you can arrange for guest to pay for any damages that don’t qualify as wear and tear. If you are an independent landlord, you will benefit from having an inventory at the start of the tenancy. Documenting with photographs and videos can prove of the original condition that the property was let in. In the case of real damage, as the landlord you can deduct the costs from the original deposit.
Tax and Expenses
While the idea of easy passive income may motivate you to rent out your London home, it is worth getting an idea of the financial realities. In terms of taxable income, in the UK there is a Rent a Room scheme through which you can let out a furnished room in your home tax-free if your earnings are under £7,500. However, if you are renting out your whole home it may qualify in Self-Assessment as a furnished holiday let business. In this case, your expenses will include basic renovations, repairs, and all related costs. Keeping your tenants happy will mean replacing any faulty white goods immediately. With a longer term let is easier to predict your income over a year and therefore your taxable income. Looking at the taxable income and your estimated wear and tear costs, as well as initial costs to set up as a bona fide landlord should give you a clear idea of the financial terrain.
Outsourcing the management
Management companies for short-term lettings have sprung up in the wake of Airbnb’s success. It is now easy to outsource your Airbnb or short-term let to a specialized company. If you want to remain at the helm but be sure you have a reliable team to call on, then Aussie has a range of services which can help landlords and hosts. We have a range of cleaners that specialize in end of tenancy cleans and rental cleans. Plus, a reliable handyman team that can show up and problem-solve. With our host of removals and storage options in London, we can assist you if you want to set up a new template for rental. Perhaps you want to store your furniture and possessions in storage, so your home is unfurnished? We can come and expertly pack everything away with an inventory and take it to one of our secure storage units. Similarly, if you want to move back in, we can deliver it back to you. Likewise, if you need to have a changeover for your holiday let interiors, our Man and Van team are primed for that job.
Aussie services for landlords and hosts in London
With depots all over London and our famous can-do attitude we are ready to work with landlords and hosts in London. There is nothing worse than trying to source people at short notice for plumbing, electrical or DIY issues. When you are providing a service it’s important to be able to offer a quick solution to any problem. We understand that, and that’s why we are an asset to anyone who wishes to have swift solutions in place while they rent out their London home. Fully versed in office removals, and international and domestic removals we have a host of packing supplies and are always making inventories. We are equipped to provide storage, transportation, and reliably friendly and professional service. Read our reviews to know you can trust us to be your back up as you branch out into renting out your London home.