The Rise of the Creative Landlord

The landscape is somewhat different for landlords in today’s market with the recent rise in mortgage rates affecting return on investment and other associated costs and regulations of letting your property changing in more recent years.

Letting a property is not what it used to be but what can you do to maximise your investment?

Introducing; The Creative Landlord.

With the rise of Airbnb and other online platforms, the last decade has seen an increase in landlords being more creative by converting their properties into serviced accommodation.

What is Serviced Accommodation?
The provision of accommodation, typically on a daily or weekly basis, principally for short stay of tourists provided by different types of establishments, including but not limited to hotels, motels, pensions, bed and breakfast services, hostels, commercially marketed private accommodation. This definition excludes the provision of homes and furnished or unfurnished flats or apartments for more permanent use, typically on a monthly or annual basis, unless offered for tourism purposes. Source: Law Insider.

This is not something that can be changed overnight. However, for any landlord looking at ways of maximising their investment, this could be a viable option*

What are the Benefits of Renting your Property as Serviced Accommodation?

Renting your property as a holiday let and/or short-term rental can have many benefits. Let’s take a closer look:

1. Higher Rental Income
Short-term rentals often have higher rental rates compared to long-term rentals. Depending on your location and the demand for holiday/corporate accommodation, you may be able to charge premium rates during peak seasons or for special events, resulting in increased rental income.

2. Flexibility and Control
Renting your property as a short-term rental allows you to have more flexibility and control over when you use the property for personal purposes, if applicable. You can block off dates for your own use and open up availability for guests during periods that suit you.

3. Tax Advantages
In some circumstances, there may be tax advantages associated with renting your property on a short-term basis. For example, you may be eligible for certain deductions and allowances related to expenses such as maintenance, furnishings, and utilities. (We recommend you speak with a tax accountant for specialist advice)

4. Property Maintenance and Security
When renting your property, you or your property manager can regularly inspect and maintain the property between guest stays. This can help ensure that the property remains in good condition and identify and act on any issues promptly.

What considerations are there for converting the use of your property?

Changing the use of your property to rent out as serviced accommodation may require obtaining the necessary permissions or approvals from the relevant authorities. The specific process and requirements can vary depending on your location and any relevant local regulations.

Here are a few steps you might want to consider before you look at converting the use of your property:

Research Local Regulations
Understand the regulations and requirements that govern the use of properties for serviced accommodation in your area.

Planning Permission
In some cases, planning permission may be required. This ensures your property complies with local planning policies and any potential impact on the surrounding area.

Building Regulations & Safety Standards
This may involve obtaining certifications for fire safety, electrical installations, gas safety and any other relevant regulations.

Licensing and Permits
Depending on your location, you may need to obtain specific licenses or permits to operate serviced accommodation.

Consult Professionals
Planning consultants, architects, or solicitors can help guide you through the process and help you understand the requirements.

Compliance with Regulations
Once you have obtained the necessary permissions, ensure ongoing compliance with all applicable regulations.

*It's crucial to consult with local authorities or seek professional advice to ensure that you follow the correct procedures and meet all the necessary legal obligations.