Short-term lets are becoming increasingly popular. But what are they? And how are they different from assured shorthold tenancies? Our rental experts are here to give both landlords and tenants all the answers.
The Basics
A short-term let (also known as a short-term rental) is understood to be any letting agreement that lasts less than six months, but often it is just a few weeks, or even one night.
A short-term let is not always the same thing as an assured shorthold tenancy. The latter is just the legal name for the most common type of tenancy contract. A short-term let is not a legal term in this sense, but merely refers to a tenancy that lasts less than (roughly) six months.
The phrase ‘short-term let’ also covers temporary lodgers and rental agreements made via internet travel sites. Both these kind of lets have been deregulated recently to encourage both industries’ growth. See more in Landlords section, below.
Tips for Short-Term Renters
Given higher rent prices and a lack of rental property, many people looking for rooms to rent in London will spend some time in short-term letting arrangements. This could be to tide over a period between longer lets or to ‘get on their feet’ upon first moving into the capital.
Short-term lets, whether assured shorthold tenancies, holiday lets or lodger lets, could include clauses about deposits, special obligations and requirements about pets, keys, access etc.
We would suggest that if you are using a short term let to secure a home for a period of time (as opposed to a holiday), it is best to enter into a shorthold tenancy agreement, since this will give you the most rights as a tenant. Learn more here.
Tips for Short-Term Landlords
If you have short-term rooms to rent in London you’ll need to sort out a few things first. It’s become a lot easier to be landlord recently, but there are still important things to do before you can start.
Firstly, there have been recent changes to law that you need to be up to date on. Following a 2014 consultation, the law in London was amended so that homeowners could let rooms for up to 90 days in a calendar year without seeking planning permission. If you want to let for longer, you’ll need to apply for permission.
It’s important to get the right kind of insurance. Including rooms in your house in a short-term letting contract could leave you exposed should things be damaged or broken. Be sure to check that you’ll be covered should things go wrong while you have tenants in your property.
Finally, tax. Following some great legislation last year, landlords can now earn £7,500 in rent without paying tax. This is around the national average, meaning most lodger-landlords won’t pay any tax. You can find more information here.
Now you know all about short-term lets, why not list your spare rooms on Roomgo? It could be a great little earner and you’ll be helping the housing crisis!
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