An alternative way of renting your property

 It depends on your area and property type - usually leisure guests on a holiday break, or business guests such as contractors. 

From our experience, this has never been an issue. At the time of booking, you can collect the ID of at least one guest and also share a list of house rules before check-in, making it clear that noise needs to be maintained to a minimum, especially between 10pm and 7am.

Because when the property is let as a short let/ serviced accommodation, the guests are charged per night. So, for  example, a property that would normally be rented at £1200 per month, and that could charge £100 per night, at 80% occupancy would achieve an income of £2400 on the month.

Due to the shorter stays, the chances of damage are reduced. You can also take a deposit for each booking, which is only released back to the guest after check-out is completed and you’re satisfied with the condition of the property. Your cleaning team also can keep an eye on you and report any issues or faults back, so you are always aware of the condition of the property. We also personally never had an issue with intentional and careless property damages - in general, guests truly respect properties. 

 So does a guaranteed rent agreement - which also offers additional benefits. 

One of the ways you can have your property as a serviced accommodation (SA) is via this agreement, also known as a corporate let. In this case, the tenancy contract is done between you and the company that will arrange for the property to be occupied by guests. The company has the same obligations as an individual tenant: to pay rent (independent of the number of bookings - it’s truly guaranteed) and to look after the property - but there are some additional advantages to this approach: no void as most agreements are long-term (2-5 years), no fees or deductions on the rental amount (the agreement isn’t with a letting agency), and you don't need to manage the flat - the company does that. Learn more

Most guests don’t spend all day in the property and as it’s regularly inspected, maintained and professionally cleaned, it’s more likely the property will be preserved in its original condition. 

There are two options if you rather not get involved in the day-to-day responsibilities and still have your property as an SA: (a) you can work with a SA management company, they will carry out all daily tasks for an agreed fee. Read more; (b) you can enter a corporate agreement with a SA investor/business. Explore more

Fret not. There are lots of content online you can review to get yourself familiarised with what's needed to set up and run an SA. There are lots of courses available too. Alternatively, you can partner with a SA management company that can help you set up and give you all tips to keep going - so you feel confident to take over yourself. We can help, read more

If your property is regarded as a Furnished Holiday Let (FHL) by the HMRC, it is considered a business rather than an investment - which brings some tax advantages:

a. Allowable expenses: this means you can offset a wide range of expenses against your revenue - this includes letting agent fees, utility bills, cleaning and maintenance costs and more. 

b. Mortgage interest rate relief: this means you can offset your mortgage interest against the profit made each year. 

c. Capital allowances: you will be able to claim necessary items of furniture that improves the property as expenses. 

d. Ownership split: If you own a holiday let with your partner, you can decide how to allocate the profits for tax purposes, irrespective of how much ownership each person has. 

e. Capital Gains Tax relief: If you decide to sell the property, you could claim Capital Gains Tax relief. One of the ways you can take advantage of it is by qualifying to a reduced rate, which could be as low as 10%.

f. Pension benefits: The net income you earn from your holiday let can be used to make contributions towards your pension (unlike long term lets). 

g. Inheritance tax relief: Furnished holiday lets qualify for Business Property Relief, which offers tax-advantaged inheritance planning.

Note: To be considered a FHL, in summary, the property must be available to let for at least 30 weeks a year and be actually commercially let for 15 weeks a year, while no more than 155 days a year are let for 31+ days stays. 

Are you interested and don't know how to get started? We can help. If you want to enjoy the advantages above without any of the management hassle, our hands-off  set up & management package is perfect for you.