Short-term lets – how do they work?

February 26, 2021

With a staycation boom on the cards for this summer, given the likelihood of ongoing international travel restrictions, plenty of buy-to-let investors are rapidly turning their attention towards short-term lets rather than longer-term rental properties. 

 

“With the likelihood of the UK’s adult population being fully vaccinated by the end of July comes the prospect of a bumper summer for the country’s holiday lets. For the first time since the original lockdown in 2020, we’re now looking at the realistic prospect of the UK fully reopening, at least in terms of daily life within its borders. Short-term lets could, therefore, be a very astute investment right now.”

Dale Anderson, Managing Director, Fabrik Invest

Investors looking for this kind of post-Covid income will need to opt for completed or almost-completed properties if they are to take advantage of the summer months. Icona, which enjoys a prime position within sight of York’s famous York Minster, is an ideal example. The UK’s second most-visited tourist destination after London, York is packed with potential. Apartments at Icona, which completed in January 2021, are priced from £245,000 and can be rented out as holiday lets/Airbnb apartments, as well as longer-term residences. Projected yields are in the region of 8-10% net via short-term lets. 

 

Holiday lets do require a great deal more looking after than long-term rental apartments, meaning that investors need to use an appropriate property management company to service them. Fabrik Invest works with My Property Host, for example, which takes apartments under management to let them as serviced apartments. 

 

What does a short-term let management service do? In short, everything! My Property Host makes the process easy for investors by providing a full management service. That starts with photographing the property and creating a listing for it on platforms including Airbnb, Booking.com, Expedia and HomeAway.

 

The company also provides guest screening and liaison services, handling everything from verifying ID to assisting with enquiries about the local area. They inventory the property, handle check-ins and check-outs and deal with any issues such as water leaks or burst pipes. This diverse list of tasks shows how much is involved in running a short-term let, which is why solutions such as that provided by My Property Host are so important for investors who want to be as hands-off as possible. 

 

My Property Host takes care of the practical side of things too, providing cleaning services and linen hire. From a financial perspective, they use a bespoke, dynamic algorithm that changes the property’s nightly rate in order to maximise returns. They also provide insurance.

 

“Short-term lets can be incredibly time-consuming to manage, so we always recommend using a professional service to do so. This can be key to ensuring that your investment property reaches its full potential in terms of income, as well as ensuring that your property remains in good condition, so that it will continue to be a valuable asset for years to come.”

Dale Anderson, Managing Director, Fabrik Invest

 

To find out more about the potential of short-term lets, call the Fabrik Invest team on 020 8175 9891, email enquiries@fabrikinvest.com or visit www.fabrikinvest.com

 

 

Share This Post:

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

Wayne Venter

International Business Development Manager

Wayne has been in the property industry for over 17 years. He started out selling residential properties in the northern suburbs of Sandton, South Africa, for one of the bigger real estate brands, before moving to a boutique, Johannesburg-based property developer. He worked at a senior level, specialising in residential developments on the north coast of KZN and various other areas of Northern Johannesburg.

Wayne moved to selling luxury, free standing homes and apartments in Sandton, Johannesburg in 2006, having joined the Country’s leading real estate brand and within six months was leading the team. In 2008, he began to focus exclusively on the luxury apartments in central Sandton, priced from approximately R2 million to R60 million. Over the years, he has also added commercial property sales and rentals to his repertoire, as well as building his own investment property portfolio between 2011 and 2018.

By 2018, realising where the South African property market was headed, he sold out of his investment property portfolio to de-risk and went looking for a real estate company to buy into. South Africa’s property market was extremely volatile at that time, so Wayne took the initiative and moved to London to work in property in the UK.

Join our newsletter

Get all the latest news from Fabrik Invest.

Edward Snell

Senior Property Consultant

I live in Spanish countryside with my wife and our 11 rescue dogs.

Originally from Bedford, I have two sons, two step children & 6 grandchildren.

I have a keen interest in property investment and over the years have built up a personal portfolio for the purposes of rental income and capital growth.

I have over 20 years’ experience in property investment, both in the UK & overseas.

My other interests include animal welfare, football, motorsports, travel and music

My personality is of an even temperament and I enjoy the cut and thrust of doing deals.
I am happy and successful in what I do & take great pleasure in providing my clients with successful outcomes.

I’m a good team player but work well as an individual.

Daniel Harburn

Property Sales Consultant

Daniel had a passion for property from a young age so he began his working life by undertaking a plumbing apprenticeship for a large well known UK developer to pursue a career in construction. After qualifying he soon realised that building relationships was a preferred skill of his due to his loyal and trusting nature.

From then on Daniel launched his career in sales where he worked his way to to a high performing sales person at a creative media company. Part of Daniels success in accumulating clients over the last 10 years is put down to his diligence in customer experience.

Daniel has a keen interest in golf and also in keeping himself fit which is essential as he and his fiancé have 4 year old twins, Jacob and Sofia who keep them both on their toes.

Contact Us

Property Investment Guide

Download Our Free UK Property Guide

Thank you!

We will be in touch.