
Since the rise of Airbnb, many landlords have taken advantage of the benefits of short-term holiday letting. High rental yields and tax advantages are just two of the many reasons why there was a three-fold increase in the number of short-term lets in Scotland between April 2016 and May 2019. However, the effects of the Coronavirus pandemic have caused the tide to turn.
Rightmove reported an 105% increase in new long-term rental listings in Edinburgh city centre during the past week compared to the same period in 2019. The current travel ban and cancellation of the Edinburgh Festival have prompted landlords to seek damage limitation in the form of a switch to long-term letting.
It has not just been the impact of Covid-19 that has motivated landlords to consider alternative ways to manage their properties. The prolific rise of holiday lets has prompted the Scottish Government to crack down on Airbnb style lets by introducing measures that will allow local authorities to establish safety requirements for all lets and set zones where planning permission would be required in order for a property to be rented out. What’s more, the government has said that it will also be conducting a review of the way short-term lets should be taxed which means future changes cannot be ruled out.
Whether just temporary or as a more permanent strategy, we believe now is a good time to consider the benefits of long-term letting and to consider how an agency, like ours, can help you to meet your letting goals.
Just 5 of the advantages of long-term letting:
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Stability and peace of mind- Long term rentals have steady demand and are more predictable in nature.
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Higher occupancy rates - Longer occupancy periods allow landlords to better anticipate income and possible expenses.
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Utilities and council tax are covered by tenants - No longer will you have to contend with high heating and electricity bills when your properties are occupied. In long-term lets, it is the tenant’s responsibility to deal with utilities.
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Lower management fees - These tend to be far lower for long-term lets vs short-term lets. Upkeep and maintenance costs are also usually lower.
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Less time consuming - If you are managing your holiday lets personally, you’ll know how time consuming this process can be due to high turnover rates and admin requirements. By instructing an experienced letting agent to handle your property, you can sit back and relax with the peace of mind that your property is in safe, professional hands.
If you are looking for a way to limit your losses from your short-term let or are considering a change to how you manage your property, our lettings team can help. We remain open for business and are available to advise you whether that be over the phone, email or a video call.
We are certified by Landlord Accreditation Scotland (LAS) and Scottish Association of Landlords (SAL) and our team are fully qualified CIH Letwell agents. This demonstrates our dedication to the strictest codes of industry practice and our ability to help you become fully compliant with letting legislation.
Get in touch today to explore your options.
Call 0131 243 1217 or email lettings@drummondmiller.co.uk
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