Long-term letting strategies may be the most consistent option for the cash flow of your guests, however, that doesn’t mean it will necessarily be the most lucrative for landlords. For many clients, Open House will recommend that the best way to guarantee a firm return on your investment is to work with short term lettings.
Keep reading to discover how Leicester landlords can maximise rental income with short term lettings.
What is a Short term Let?
Generally speaking, a long term let is defined as any tenancy lasting in excess of 6 months. Most landlords and estate agents will define anything less than this as a shorter-term let. Another way of distinguishing length of lets is to consider tenancies lasting 1-6 months as medium-term lets and those lasting less than 1 month as short term lets.
Long term lets can last indefinitely from the 6-month mark. This is the most common type of letting and is taken by a wide variety of the general population. The benefit of long term lets is that they bring a “steady” income and will allow you to manage cash flow and budget for future expenditures accordingly. Another benefit is that you do not need to worry about changeovers or screening new tenants.
Medium term lets can be considered as tenancy agreements lasting anything between 1 and 6 months. These typically bring a mixed rental income. The majority of tenants on medium-term let’s are students and business professionals who wish to live in one location semi-permanently. The benefit of medium lets over long term lets as they allow you to alter your price periodically and also give you more scope to make changes and refurbishments to the property.
Short term lets are any tenancy agreements lasting less than thirty days. This rental strategy produces the most variable rental income. The biggest clientele for landlords operating in short term lettings is to tourists and guests who are visiting cities and other popular areas for business or leisure. A huge benefit of short term lettings is that, through operating a flexible and evolving pricing strategy, landlords are able to maximise their rental income all year round.
If any of this seems overwhelming, then don’t worry, it’s a lot of information. Open House Leicester Estate Agents are highly trained professionals who use years of experience to define, appraise and optimise your rental strategy as a landlord. We generally define anything less than 6 months as a short term let and will work with you to maximise your rental income if you opt for this strategy.
Which Landlords Should Operate In Short Term Lettings?
As with anything in life, there are pros and cons to short term lettings which need to be weighed up by landlords to ensure that it is the right choice for them. Open House Leicester Estate Agents operate a fully transparent service by giving clients all the information to ensure they need to make an informed decision.
Due to short term lettings being favoured by tourists, they are most successful in areas which already have a high tourist demand (e.g. inner cities or areas near popular attractions). A major benefit of operating in short term lettings is that they allow landlords to take advantage of holiday seasons and peak interest. A clear example of this is being able to charge more around the Christmas and New Years Eve period.
The flexibility which comes with having no long term contracts is another huge benefit of short term lets. This allows landlords to make changes and refurbishments to their property and even have the option to keep them free for personal use if wanted.
However, as with any good thing, there are usually pros which must be weighed up against the cons. The major drawbacks of offering short term rentals are the larger amount of labour needed. A big reason for this is the inevitable wear and tear which comes with consistent changeover, meaning your property will probably require more maintenance both in the short and long term. Another downside of short term lettings worth considering for landlords is the more frequent need for housekeeping and needing to screen tenants between rental contracts.
Ultimately, whilst short term lettings may appear to be more time consuming, they are a great way of boosting your rental income in the long run. Another benefit is that they help in supporting the local economy whilst also giving you the chance to meet people from all walks of life and allow travellers to experience your area.
Leicester estate agents are on hand to support you in all aspects of the tenancy agreement when it comes to short term lettings. We will help in screening tenants and advise you on which pricing strategy will work best for your property to ensure that you maximise your rental income.
What Is the Best Price for My Short Term Let?
There are numerous factors that go into what the best rental price should be for your short term let. Leicester estate agents are here to work alongside you to devise the short term letting pricing strategy which is going to maximise your rental income. Open House provides free rental evaluations to ensure that you are getting the most from your investment.
Location is a huge factor when it comes to short term let prices. Is your property a tourist hot spot? Does it have strong links to public transport? How far is it from the city centre?
The amenities and utilities on offer is another big factor in how much guests will be willing to pay to rent your property. For example, if you are able to offer an en-suite bathroom, car parking, home gym equipment, a sofa bed and even simple wifi then your rental price should match this accordingly.
The values of properties recently let in your area is another massive factor in your letting price strategy. Open House’s valuations are carried out in person by an experienced valuer who knows your local area well and can take a realistic view of the rental income your property can achieve.
How We Can Help
Open House aims to take all of the stress out of the rental experience by providing a personal dedicated service which optimises your profits as a landlord.
Through letting out a property with us, you will be given all the best information and industry insight to find the best tenant for you. We conduct thorough Leicester property evaluations and market research to ensure that we are covering all basis for homes within the region.
Our expert team of estate agents have years of experience and knowledge within the Leicestershire area. For more information on how we can help you, get in touch with one of our friendly team today.