London landlords are facing massive changes following the unveiling of the white paper for the Renters' Reform Bill in June 2022. One of the proposals contained the abolishment of section 21 notices.
Private landlords would no longer be able to repossess their properties from assured shorthold tenants on the "no-fault" ground eviction.
It will be challenging to remove tenants who fail to pay their rent with the new law. Property owners often resort to using Section 21 when evicting tenants because of no confidence in the court process, which is costly. Although there has been an assurance that the court processes will become streamlined, landlords are not convinced.
Currently, the timeline stands at about 5months to complete the eviction process. This Section 21 method, could cause more cases to come to court, which could increase delays because of resource availability.
In short, landlords might have more headaches and extended periods without rental income. Landlords want their investment property to return maximum yield. And are now looking into new, easier ways to reach their goals.
A short-term tenancy is alluring and seems hassle-free. London city centre, in particular, is perfect because of the high demand in the short-term rental market and convenient transport links. Landlords will be able to be picky over whom they rent their property. Should the tenancy not be favourable it is easy to switch tenants with no fuss.
What is a short-term tenancy?
It is a rental property offered to the market for less than six months. Often as holiday letting or as a short-term solution to a tenant for various reasons.
What are the different types of short let agreements?
Let your home as a holiday home
When people go away for the holidays, they might consider leasing their own homes out for a short period. Planning permission is not required to let out a property for holiday use.
Buy to Let
This is when you purchase a property specifically to let out. Landlords often do this by making use of a buy-to-let mortgage instead of a residential mortgage.
Airbnb
Similar to letting your own home as a holiday home and buy-to-let properties, it is important to check with your local authorities if you will require planning permissions when short-term letting.
What landlords should know about short-term tenancy:
It is essential to be aware that legislation prevents property owners in London from renting out entire properties in the short term for more than three months in a year.
When you let a property out for less than six months, you will be responsible for accounts such as utilities, telecoms, council tax and TV licenses. It will require careful planning and calculations to reach your intended rental income bracket from short let tenancy.
Landlords will require special insurances that cover accidental damages, liability, home care emergencies and possible loss of income due to unforeseeable events.
100% Compliance with health and safety regulations is required.
Depending on where your property is situated, the market is usually highly seasonal. Rural properties fluctuate more drastically than city apartments.
Your tenant will have high expectations. The landlord will be required to let a fully furnished property, including utensils, bed linen, towels and sometimes toilet paper.
Once you have considered all these points and you require to generate business-like profit, a longer lease may still be the right choice. It will be profitable for you to make use of guaranteed rent schemes.
Aston Pearl Real Estate's guaranteed rent service gives landlords in the London borough of Croydon and areas such as Purley the option of receiving guaranteed monthly rental with the following benefits:
* No need to find a series of tenants
* No headaches and hassles
* Prompt rental payment
* 0% commission
* There are no rent breaks, regardless of occupancy. Full rent guarantee.
* Regular inspections
* 1 - 5 years lease and peace of mind
* There are no utility bills or council tax
South London & Surrey Landlords Are You Looking For A Hassle Free Solution?
We will guarantee you a rental income from day one regardless of tenants or not. There are no voids, just regular monthly rental gains in your bank account and no commission fees.
