We are going to share with you the differences between short, mid, and long term let.
Weighing up the pros and cons of each one.
So, what is a long-term let?
A long-term let means homeowners and letting agents must comply with a comprehensive set of legal obligations. This ensures that the property is 100% adhering to specific standards to keep its tenants safe.
How long is a long-term let?
It will usually be anywhere from a year upward.
A long-term let is a way that a landlord can quite simply rent out their property for long periods of time. This can give them peace of mind and guarantee a fixed monthly income.
The stability that this creates for some landlords is beneficial, especially if they have multiple properties. It can make life much simpler,, especially if they are managing many different properties with many tenants. Another benefit is that rental income is predictable and easy to calculate with a fixed agreed income. Especially true if mortgages or other outgoings need to be paid.
It is one big headache taken away from them for the entire duration of the tenancy.
The cons are a little bit like the opposite of the pros mentioned above. If the tenants are less than ideal, then the landlord is stuck with them. If the tenants fall behind in rent arrears and the landlord relies on their rent money to pay their own monthly mortgage, this can be an issue. It can begin to create unsustainable financial problems and headaches for the landlord.
If an increase in the rental value of properties occurs, a landlord would be unable to take advantage of it swiftly. There are clauses for grounds of eviction that can be
used with the help of a solicitor in extreme cases. But this is no easy fix. It not only costs the landlord to instruct the use of a solicitor whose prices are exorbitant. But it also tends to be a long and drawn-out process to remove said tenants.
Another problem that long-term lets can present is the use of the property’s amenities. For example, heating water, electricity, and carpets can reduce their wear and tear over long periods. Inevitably leading to some repairs. But in the short term let there it is less likely that repairs will need to be done.
What is a short-term let?
A short-term let is an agreement that generally is less than six months. They usually book via short let platforms (Airbnb, Booking.com, etc.). In a lot of cases, the occupants or guests can be holiday-makers, tourists, or work-related businesspeople. In short, let’s make a great alternative to a hotel; people snap them up quickly. They have become a very trendy little earner, especially if you have a spare room.
The first thing in favor of this type of let is you can charge a much higher rent.
Short lets are charged by night and can yield, on average, 30% higher returns versus a long-term let. Sometimes even more, especially in high season.
The landlord has more flexibility with their property as they can choose to use it for themselves when it’s vacant. If a landlord is unlucky enough to have bad tenants, they will be leaving as quickly as they came.
There is a lot more work and effort involved in a short-term let. The fact that there is a constant flow of tenants or guests means that you will need to be undertaking a lot of cleaning and preparing. Also, checking guests in and out and any damages or repairs usually have to be quickly fixed. You might also find you have unexpected vacant periods. On top of that, you will be responsible for paying any bills and utilities.
Mid-term let: the alternative to avoid restrictions?
A mid-term let is an alternative tenancy agreement that lasts anywhere between three to eight months. This is ideal for those looking for a lot within a specific period of time.
The positive with this type of let is that you can charge more per month than a long-term let. You also have the added advantage of it being professional in mobility for things such as business contracts or refurbishing the home.
As the tenants are staying for a pre-agreed period, the risk is fairly minimal for failure to pay rent. This is also true for failure to leave at the end of the term. In addition, as the tenancy is an “out of season let,” there are fewer formalities when proceeding with the termination of the contract.
The one drawback to this type of let is that there is less demand from tenants. This is due to it being more niche, as the majority opt for a short or long-term let.
Nestify keeps the pros and eradicate the cons
By partnering your property and letting needs with Nestify, we will manage and combine the best of both worlds for you.
We will successfully let your property with a combination of short-term let and mid-term lets. Bingo! Holiday lets in the high season will bring the biggest yields. Nestify will take care of all the hard work, such as housekeeping, check-in, and check-outs. All preparation, cleaning, and more will be taken care of to ensure your guests have a memorable stay.
Throughout the rest of the year, Nestify will arrange mid-term lets. This brings a much-needed peace of mind with longer periods of secure rental income. Experience all of the benefits by letting Nestify take the reins to manage your property letting needs.