Short Term Lets21/02/2019
Short Term Lets from forums such as Air B&B can represents excellent investments, generating income from daily rents at levels considerably higher than available from ASTA based market rents.
Equally, short term lets can result in problems with noise and neighbourhood issues, especially when occupied by users to enjoy celebrations by ‘partying’. Short term lets can cause management problems in the wrong environment and without robust management.
O’Connor Bowden manage property and buildings where short term lets are prohibited. There are usually a number of factors that prevent leaseholders offering short term let’s:
PLANNING PERMISSION: Many new buildings have ‘Residential Status’ planning permission. This means the apartments must be occupied and used as a ‘residence and home’.
LEASE: Clauses within a lease may prevent short term lets.
INSURANCE: The building and liability insurance of a development may exclude short term lets, especially if the lease prohibits short term lets.
BUILDING REGULATIONS: To use a property and building for short term let, the building must have certain compliance, similar to hotel accommodation. For example the Fire Risk Assessment and Management with many residential apartments will not comply for short term lets, thereby voiding insurance and liability as well as potentially making a leaseholder liable in the event of a claim.
SALES: We are aware of more and more apartment sales to investors promoting short term let benefits, for property where it is prohibited for one or all the reasons listed above.
O’Connor Bowden manage buildings and properties in both camps. We manage where short term lets are prohibited. We also manage purpose built buildings for holiday rental or city break / short term lets.
We recommend you make sure you know where you stand with your property and building. O’Connor Bowden Building Management Services are always available to help.