long-term let Archives

How to Choose Between Long-Term and Short-Term Lets

Posted on 14 April 2022 - 12:00 pm

Letting your property can be a lot of work. It is best to decide whether a long-term or short-term letting period is right for you.

When done right, letting out your property can be very profitable, but it’s also very time-consuming. There are a lot of differences between each letting model and this can affect your legal responsibilities and your potential income.

Keep in mind that one letting model is not necessarily better than the other, they just require some different steps. Different types of letting are appropriate depending on what you hope to achieve with your property. So, doing your research ahead of time is a good start!

The team at Keey has broken down this task into three options to help you determine which is best for your situation.

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Description automatically generated — Different rental types work better for different people.

Short-Term Rentals

There are many upsides to managing a short-term rental property.

Short-term rentals are characterised as a rental period shorter than six months. However, most tenants will prefer a period of one night to a few weeks when choosing this option.

In conjunction with the popularity of Airbnb, this option has opened up more possibilities than ever before for a low-cost and low-commitment business model. It provides a lucrative opportunity if you can guarantee high occupancy and high rates.

However, there are also downsides to this option. Statistically, short-term lets can achieve 30% higher rates and yields than long term lets. With a short-term let, however, your property might be vacant more often as you will experience a turnover of tenants. Due to a high turnover rate, it’s pretty unlikely that you’d consistently run at full capacity.

Managing a short-term property is also more demanding of your time and effort. So, you may need to hire a host management service or sacrifice more of your time to constantly seek out new tenants to ensure the successful running of the homestay property.

Read Now: What to Know Before Investing in a Property for Airbnb

Long-Term Rentals

As a more traditional landlord, you can decide to let your property on a more long-term basis. This would usually be between six or twelve months.

When you have tenants in the property on a longer-term basis, you tend to have a more stable experience. You have a consistent income every month, so you have less to worry about when it comes to earning a living. Renting out your home in this way is also beneficial as the tenants will cover the energy bills, and demand for long-term rental properties is at an all-time high.

However, entrusting your property for an extended period means you need to trust your tenants. It is vital to screen people before they rent the property to make sure the risk of damage is low. This includes regularly inspecting the property to assess any issues and making sure the tenants are satisfied and continue to be a good fit for the property.

Read Now: How to Manage Multiple Rentals – Long-Term Lettings

Flexible Letting Models

There is a lesser-known third option when letting out your property. A flexible letting model is a combination of short-term, medium-term and long-term rentals to maximise your revenue and letting potential.

By taking a wide range of bookings, you can maximise occupancy rates and create the most profitable solution.

With current restrictions on short-term stays due to the ongoing pandemic, you can fill up any available gaps in your annual calendar with medium and long-term rentals to ensure a steady, hassle-free source of income throughout the year.

Read Now: 5 Things You Shouldn’t Do As a Landlord

To Sum Up

Now that we’ve looked at short and long-term letting options and how to use these methods to your advantage, it’s time to move forward and apply them to your business plan. Keep in mind the distinct pros and cons of each, so you can potentially combine them to get the best of both worlds when renting out your property.

If these options appeal to you and you want assistance planning the best method for your letting business, Keey can help you. Contact us to find out more about our flexible letting models and hospitality management services.

How to Manage Multiple Rentals – Long-Term Lettings

Posted on 14 February 2022 - 12:00 pm

Investing in real estate is a great way to grow your wealth and create financial security for your future. But when you begin to grow your investments, it can easily become stressful. Managing multiple properties is a difficult task, as each comes with its own challenges and issues.

Don’t let this discourage you though – there are lots of ways to ease the pressure of owning multiple rentals. You can reduce the day-to-day stress and the amount of time you spend focusing on your rentals, whilst still benefiting from the multiple streams of income they provide. So, what’s the best way to achieve this?

Get Organised

When it comes to managing multiple rentals, organisation is key. Each property comes with lots of individual paperwork and legal forms. If you don’t organise them, it’s easy to get information about different properties mixed up, which can cause issues in the future.

Use a filing system that works for you and be consistent with it, whether it’s online or physical. This will make it easier to find any information you need quickly, and can stop you from feeling overwhelmed.

Don’t be afraid to organise regular visits to your properties. This can help you ensure they are still at a high standard, and any issues they have can be dealt with immediately. If your tenants expect you at regular intervals, you can build a better relationship with them. They will feel more comfortable asking for help regarding the property, which will help you keep track of maintenance.

Read Now: How to Carry Out a Thorough Rental Property Inspection

Use a Rental Management Company

It’s easy to feel overwhelmed by the workload of managing a rental, which only increases when you have more than one. It can be beneficial to contact a professional rental management company, who can ease the pressure and cover the complicated parts of owning rentals.

Whilst it can sometimes be pricey, they understand the intricacies of legal issues and complicated systems which you may struggle with. It can be easy to make mistakes with tenancy laws, which can eventually lead to fines.

Rental management companies can provide aid in many different aspects of property owning, including:

Screening tenants
Property inspections
Maintenance requests
Filling vacancies
Legal issues
Security deposits.

Choosing to self-manage all of your properties can be very time-consuming – tenants often want immediate service for problems that you may not be able to provide.

If it’s short-term rentals you’re trying to juggle, using a rental management company like Keey can remove all of the heavy lifting for you!

Read Now: Important Renting Rules for Landlords and Tenants to Follow

Screen Your Tenants

If you want to minimise hassle down the road, it is important that you have tenants that are trustworthy and responsible. By screening your tenants meticulously, you remove significant risks. You are less likely to have issues with rent not being paid, or with the property being mistreated, if you have paid attention to the type of people renting your property.

Having multiple rentals becomes a lot easier to manage when you don’t have to constantly fix problems that your tenants are causing. This removes anxiety and creates a level of trust between you and your renters. If you trust them, they will find it easier to trust you.

Property managers can help you find tenants that are best suited to you and your rentals, so you don’t have to worry about the screening process. If you like your renters, it becomes easier to form good relationships with them too. This makes fixing any issues a lot easier, as they won’t feel worried whenever they reach out to you.

Utilise Technology

Technology is a great way to manage details, and simplify the process of maintaining multiple rental properties. You can use it to make lots of aspects of property rental easier, including:

Checking applicant history
Handling rent
Receiving requests from tenants
Signing documents.

Lots of rental management companies provide specialised software, data and systems that can help to simplify the processes even more. This can remove a lot of pressure, as you are less reliant on having to understand the intricacies of property management.

The presence of Covid makes people feel tenser about in-person interactions. By utilising technology wherever possible, you remove the stress of face-to-face interaction and create a more comfortable situation for your renters.

Read Now: 5 Things You Should Know About Long-Term Letting

In Summary

Investing in multiple rental properties can be a good way of making extra income, and it doesn’t have to be difficult. Property management companies can help to ease the pressures of owning properties, and create a sense of balance.

Having strong relationships with your tenants makes the process much easier, and soon you will be seeing all of the benefits of managing multiple rental properties!

If you want to learn more about how to manage your rental properties, contact the team at Keey today. We can help to find the methods that work best for you and your goals.

What Should You Focus on For Long-Term Rentals?

Posted on 27 September 2021 - 12:00 pm

Long-term Airbnb bookings have risen in popularity within the last few years. This can be especially seen with the onset of the Covid-19 pandemic. In August 2020, the number of people who searched for longer stays was up more than 50% compared to 2019. The last two years have brought the short-term rental business to a halt, with people forced to stay home and limit travel.

However, many people utilised long-term Airbnb stays, a prime example of this being essential workers isolating in Airbnb properties away from their families in order to keep working while keep themselves and others safe.

Despite this recent boost in longevity, Airbnb hosts are no strangers to long term rental offerings. It has been a large part of Airbnb’s repertoire since they launched their “simpler monthly rentals” functionality in 2011. It’s something more and more hosts are considering, as long-term rentals can be beneficial for business.

Long term rentals can help stabilise your income in a period of uncertainty, and even help you make more money in the long run. However, before you open up your space for the long term, there are some things you should consider in order to make your long-term rental the best it can be.

Before You Go Long-Term: Consider Your Area

Something to strongly consider when starting a long-term rental is the area in which you purchase your property. The first and best places to begin looking are the top-rated places in the UK for buy-to-let properties. The top three places on this list, for example, are great places for long-term rentals for many reasons.

Manchester, Cambridge, and London all have excellent rental markets, with Manchester being one of the best in the UK for growth. They also all have a consistent flow of people, with a combination of tourists, visitors, and internally moving inhabitants. This is due to the fact that they are centres of education, business, and finance. Areas like this are the best for long term rentals for a few reasons. They have a duality because they are popular for both long- and short-term rentals. Manchester, Cambridge, and London have great marketable holiday elements, such as culture, history, sightseeing and shopping.

Therefore, there is a bigger influx of people needing places to stay for a longer period of time. More students are staying in these places for years abroad, more people are visiting for business trips, and more are looking for spaces that they can comfortably work from home. Furthermore, London and Manchester are also close to airports, and therefore have many national and international connections. They offer great opportunities for expats needing somewhere to stay after moving to the UK.

Things that would attract long-term guests for slow travel also attract people looking for a short break. You can still easily rent for weekend city breaks or summer holidays. This is great for a wider net of income, especially when you don’t have long-term month to month tenants.

The wide range of potential Airbnb guests is also a large benefit of hosting in these areas. Somewhere toward the bottom of the list, like Wakefield which has a has a low average room rental rate, doesn’t have these kinds of connections. It has a more limited appeal, and therefore is less likely to draw in any long-term tenants.

Make sure you do your research before you decide where you want to purchase an Airbnb property. You don’t want it to limit you if you choose to go long-term at any point. Keep your options open!

Inside the Property: Things to Include

People who are taking advantage of long-term Airbnb stays are less likely to want to feel that they are on holiday. They generally want to feel like the space is more homely and comfortable. Therefore, it is important to consider who is using your space in the long-term so you can better cater to them across their stay.

Those staying for a few months are likely to have different needs than those staying a weekend. Here are some things you may want to keep in mind when curating your long-term space.

Office space. People that are booking long-term are likely to be working remotely, studying, or away on business trips. If this is the case – they’ll need a space to do their work. While this can just be done comfortably in bed or at the kitchen table, it is great to give people a dedicated space for this work.

It doesn’t have to be a whole separate office specifically. It can simply be a defined desk space with enough room to comfortably work. This is beneficial as it means the guests have a clear boundary between work and home. It helps your guests switch off and relax and create a more manageable work/life balance. It’s a small inclusion that really goes a long way!

Look at reviews. If you already have an Airbnb that houses short-term guests, read your reviews. If not, read ones for other properties. Analyse them, check if anyone had any complaints and address them no matter how small they may seem.

This is an important step and shouldn’t be missed, because things that were annoyances to short-term guests become problems for guests’ booking longer reservations. So, things like construction noise, a closed underground line, or a bad WIFI connection should be addressed where they can. If they can’t be changed, like construction noise, they should be communicated honestly to the guest.

This covers you in the event they may be unhappy with something and ensures that they are 100% getting what they are paying for. Guests want to go into a rental with all the information possible so they can make an informed decision as to whether they would be able to overlook certain things.

Kitchen items. For longer term guests, its often beneficial to provide better quality kitchen items and utensils. The better the quality, the longer they will be able to be used and are less likely to need replacing. It can be more cost effective this way in the long run and can elevate a guests stay purely through convenience.

Something else to consider is the kitchen appliances you provide. While items such as toasters and kettles are par for the course for short-term rentals, you may think to include items like blenders, baking supplies and even Tupperware. It makes the space more homely and utilitarian and will increase returns and good reviews.

Consider making things pet or family friendly. People are more likely to bring their family and/or pets to a long-term stay. You may want to pre-emptively cater to this through the addition of childproofing, extra beds, and substituting expensive or fragile decorations for children’s toys and a portable crib.

For pets, it would be covering hardwood floors with washable rugs, the inclusion of removable and washable fabrics (for furniture covers or pillow cases) or adding pet supplies, like food and water bowls, litter trays or scratching posts.

Making your property pet friendly can in turn make the property ‘higher risk’, as there is a larger chance of needing to replace things or having to make larger scale repairs in the worst-case scenario. You can try to mitigate some of this by charging a ‘Pet Fee’ in order to recoup any issues, but it is entirely personal choice.

This is not by any means necessary if it’s not something you’re comfortable with. However, it is something to consider widening your audience of guests.

Quick Tips and Tricks!

Here are a few quick things to keep in mind when updating a current listing to a long-term one.

Make sure your space is Covid safe. As Covid-19 is driving more people to long-terms stays, it is important to keep your property safe. Reassure your guests that you are taking every precaution to minimise spread and provide them with cleaning supplies to maintain this.

Make sure you improve your listing. Update it with all the things you’re including and how it will benefit them to have a long stay with you. Be truthful and make sure you highlight and emphasise the positives of your property.
If you have a property guidebook, update this with more long-term necessities. This could be things like gyms or dog parks, but whatever they might need for a longer stay in an unfamiliar city should be included.
Ensure you update house manual with everything needed. This is incredibly important if you include any new kitchen appliances or items that may not be used for a shorter stay. Make sure the house manual has clear instructions that assist the guest to make the most out of your property.

Conclusion

Clearly, there are many things to consider before you open for long-term rentals. You should only do this if you’re fully comfortable with it, as it comes with a whole host of its own challenges. It can even make your rental higher risk in some instances, and this should be considered.

Try and create different customer models that may take advantage of a long-term rental. Put yourself in their shoes. Why would you stay long-term somewhere? What would you expect from your host? Use these to adapt your property to best meet the needs of your guests.

If you’d like to find out how Keey can help you get the most out of your long-term rentals, feel free to contact us today!

5 Things You Should Know About Long-Term Letting

Posted on 24 June 2021 - 12:30 pm

At a first glance, we can assume that long-term letting is fairly straightforward; List your rental property, find a tenant, sign a contract and ensure your income for a set period of time – super!

But is it really that easy? And could your efforts be put into other places? Are you really maximising your profits with long-term letting?

Long-term rentals are typically around the length or 6 months to 1 year long. However, it can be longer. Anything under 6 months would usually be considered as a short-term rental.

Keep reading to see the ups and downs of long-term rentals and whether or not it’s best for your rental property.

The Upside of Long-Term Rental

Your Financial Stability

Possibly the best incentive as to why a landlord would rather rent out their property long-term than short-term is for financial stability.

When you draw up and sign a contract with your tenant, they will have agreed to occupy the property at a fixed monthly rate for a fixed period of time, ensuring that you are receiving the same amount of revenue, month after month.

Long-term letting is perfect if you need a consistent stream of income and want to avoid risk when it comes to your finances, unlike short-term rentals.

Aside from your low risk factor, you can also guarantee that your rental prices don’t fluctuate throughout the year, so even in off-peak seasons, your revenue is steady and flowing in.

Your Outgoings

When we compare long-term to short-term rentals, we can expect to see fewer overall expenses and outgoings for long-term lettings.

The reason for less expenditure, is purely because with long-term lettings, you typically would spend less money on outside expenses, like: advertising, frequent cleaning, linen hire, as well as, your amenities because, you are less likely to offer that WOW factor to your tenants, unlike actual guests.

You can expect your tenants to clean the rental space after themselves, and provide their own linen (bedding and towels). After all, it will be their home space for the duration of the signed contract agreement.

As tenants, they’re not expecting to be treated like short-term guests, so while they should expect your rental space to be in working order, you don’t necessarily have to offer them gift baskets, discounted activities and tickets, as well as, fresh bedding every time you visit.

Take a look at what amenities you should supply as a short-term rental.

Time Freedom

The great thing about long-term letting as a landlord is that it can be relatively hassle-free, leaving you with a lot more time on your hands.

As a landlord with a long-term rental property, you’re saving yourself lots of time by avoiding small tasks such as, not having to conduct multiple vetting processes for the large amount of guest overturns, or deal with guest communications and enquiries frequently – although, you should still keep an open communication with your tenants regardless.

Simply put, long-term rentals are much easier to manage than short-term rentals and can be somewhat seen as a passive income.

The Downside of Long-Term Rental

The Initial Set Up

Although owning a long-term rental will save you time in the long run, your initial set up is where you’ll put most of your effort in.

Your Vetting Process

As your tenants will likely be staying in your space for quite a long period of time, it’s important to run a thorough vetting process and work to a specific requirement list of who your ideal tenant would be.

You definitely will want to spend your time making sure your process is thorough when it comes to tenants. As they will be occupying your rental for a good length of time, it’s important to take your time and work to a check list of what your prefect tenant would be.

It’s up to you how thorough you want to be with your tenants vetting process, however, if you have a hard time with your tenants, it could be difficult to amend any contracts to remove them from the premises.

Read now: How To Find The Perfect Tenants For Your Rental Property.

Contracts

Contracts – they’re long, complicated and specific, yet, they’re super important to your long-term rental set up. Ultimately, they’re there to protect both you and the tenant. You don’t want tenants overstaying their contract or missing their rent payments to you.

With a contract, you can state your terms for their stay. You might want to include requirements such as, no smoking inside and no redecorating or repainting. It’s important to state in your contract about the rent payments that you’ll be expecting from your tenants every month and any consequences that can happen for late payments and/or no payments.

You Could Be Making More Money

Like we mentioned before, long-term letting ensures a steady stream of income and a piece of mind from your rental. You might need that sort of consistency in order to cover your overheads, like your mortgage, bills and any ongoing maintenance needed along the way for your rental.

However, you could actually be making more money, and faster too, with short-term rentals.

It’s be reported that short-term rentals can charge up to around 30% more than long-term rentals. That’s a pretty big profit gap!

Let’s say you need a minimum of £1,000 a month to cover your long-term rental outgoings. With short-term letting, you could be turning over that monthly sum in a matter of days, depending on your location and your properties prospects.

By owning a long-term rental, your profit margins are lower when in comparison to short-term rentals. It could be worth taking a look at your pricing strategy for your rental and compare it with estimated profits for short-term rentals.

Read now: Creating the Perfect Pricing Strategy for Your Airbnb.

The Overall Score

Long term rentals are perfect for that low risk, relatively hassle-free and low maintenance stream of income. You’re able to get what you want securely, with less effort compared to short-term rentals.

However, by being a long-term rental, you could be missing out on a big revenue difference. If you have a mortgage, you could be able to pay it off faster with short-term renting. Not to mention, when it comes to bad tenants and long-term lasting damage to your property, long-term rental can be a bit of a headache.

Still not too sure if long-term letting is the best decision for you? Speak to one of our expert advisors, here at Keey, to help you along the way, to make a decision that feels right for you and your rental.

Tag: long-term let