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Are you realising full financial potential on your residential properties?

October 19, 2016 Martyn Arnold

Have you got holiday lets on your farm or have you converted your redundant farm buildings to residential units? Are they let out as an Assured Shorthold Tenancy (AST) to good long term tenants or are you restricted, perhaps because of planning in for example the South Downs National Park, to holiday lets? Are they bringing in the return you expected? If not then why not consider Short Term Lets for say 3 – 6 months infill?

WA Short Term Let could be a sensible way to increase bookings, income and occupancy; it could reduce your overheads and balance the expenditure of loans and business tax, it could also reduce some of the day to day hassle of changeovers etc and allow you to relax for the difficult off peak period and increase your yield on the property.

If your planning permissions allow a Short Term Let and you consider it a sensible option, it ought to be arranged by a professional agent who has Association of Residential Lettings Agents (ARLA) and / or Royal Institute of Chartered Surveyors (RICS) qualifications in order to help avoid various pitfalls. You should consider, for example, whether the deposit needs registering, how the rent is to be paid and whether any money is to be paid up front, credit referencing is important and checks must be made to ensure you are complying with recent changes in Right to Rent and Money Laundering legislation, you would also need to be aware that a Section 21 notice may need to be served to end the tenancy.

Some of the online services currently available such as Air bnb are tempting. However again there are pitfalls, for example you cannot simply extend their stay as it will legally be construed as an AST or perhaps a Contractual Residential Tenancy (CRT) for which you need a legal framework in place to protect against potential problems. Changes in legislation are frequent and it is muted by ARLA and RICS that legislation will be amended again in the Autumn Statement or March Budget, so it is important to have access to professional advice.

The advantages of a Short Term Let can be considerable if you use a professional agent. The Country House Company is a member of ARLA and RICS, has had over 20 years experience in short and long term lettings across the region and would be happy to help. As the circumstances vary from property to property we appreciate the importance of an individual service and are happy to visit a property free of charge to explore its financial potential.

For further details or arrange a visit please contact Sue Crossley or Kate Morton on 02392 632275.