Hi Guys,

I'm hoping someone could offer me their pearls of wisdom in regards to short term lets.

I have been offered the opportunity to manage a clients property on this basis.

Although I am clued up when it comes to AST rentals, I have to put my hands up and say I am not so knowledgeable when it comes to short term lets... Basically is it as complex as I fear irt maybe? or is it actually quite simple?

my main questions are:

1. Do guests have to sign a contract, will this be an AST or something similar to a holiday let?

2. do u have to protect a deposit?

3. are there any safety legislation i should be aware of?

4. what would guests exprect ie: maid service daily? laundry?

the property is a 1 bed flat in a purpose built block, any help would be most gratefully received

Many thanks
Jules

A short term let is no different from a longer term let. An AST does not have a minimum period so it could be short or long.

If you want to operate as a holiday let or hotel, you need to be careful to make sure you demonstrate that what you do is what you say. In particular, a person would not be able to use your property as their primary residence if you are claiming that they are there on holiday. This issue came up in London with short term lets around the Olympics.

HI John,
Thank you for your email.
Basically it seems the flat is being rented out on a weekly basis, with rent charged at different costs depending on the season, so would this make it a holiday let?

if it is a holiday let, do i still need to ensure the occupant signs a form of contract?
also, as the owner lives abroad, do i charge a monthly % to look after the property when occupied and void?
sorry to sound so clueless, but id rather get all my facts before I commit to this new client.

kind regards
Jules

Hi Julie,

1. Do guests have to sign a contract, will this be an AST or something similar to a holiday let?

No. There is no need for a requirement for an AST as they come under the category of "guest" similar to how a hotel operates. They pay in advance for the service. However, you should have some Terms and Conditions that set guidelines of what you find as acceptable treatment of the property.

2. do u have to protect a deposit?

No. But take a "good housekeeping" deposit to cover breakages and ensure they respect the property. This is refunded after the let. I suggest £250.00.

3. are there any safety legislation i should be aware of?

The holiday let should have the correct insurance from a specialist holiday let insurer.

There should be fire & safety instructions in the property.

4. what would guests exprect ie: maid service daily? laundry?

The property is presented clean and ready to use. No need for daily maid service or laundry as they do it themselves during their stay. If they request otherwise, then that would be an additional charge.

You could charge a small monthly retainer to look after the property, deal with maintenance issues etc and this would be even when it was occupied.

Hope that helps?

(17-08-2012 12:09 PM)julie_ford Wrote:  HI John,
Thank you for your email.
Basically it seems the flat is being rented out on a weekly basis, with rent charged at different costs depending on the season, so would this make it a holiday let?

if it is a holiday let, do i still need to ensure the occupant signs a form of contract?
also, as the owner lives abroad, do i charge a monthly % to look after the property when occupied and void?
sorry to sound so clueless, but id rather get all my facts before I commit to this new client.

kind regards
Jules

Julie The important point that John made about it being the occupiers only/prime residence is the big issue. If the person had no other home in the UK (ie overseas visitors) the tenants right to remain for a minimum of 6 months unless he is removed under a Section8 would apply regardless of the term stated in any contract. As you know the wording of any contract AST or otherwise cannot change the law. In my opinion this is heavy workload management unless I am missing something?

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(17-08-2012 12:31 PM)vanessa warwick Wrote:  Hi Julie,

1. Do guests have to sign a contract, will this be an AST or something similar to a holiday let?

No. There is no need for a requirement for an AST as they come under the category of "guest" similar to how a hotel operates. They pay in advance for the service. However, you should have some Terms and Conditions that set guidelines of what you find as acceptable treatment of the property.

2. do u have to protect a deposit?

No. But take a "good housekeeping" deposit to cover breakages and ensure they respect the property. This is refunded after the let. I suggest £250.00.

3. are there any safety legislation i should be aware of?

The holiday let should have the correct insurance from a specialist holiday let insurer.

There should be fire & safety instructions in the property.

4. what would guests exprect ie: maid service daily? laundry?

The property is presented clean and ready to use. No need for daily maid service or laundry as they do it themselves during their stay. If they request otherwise, then that would be an additional charge.

You could charge a small monthly retainer to look after the property, deal with maintenance issues etc and this would be even when it was occupied.

Hope that helps?

Thank you Vanessa, very helpful indeed, so as an agent I would basically work my system as a hotel as such, booking people in the diary and sending a cleaner in ready for the new guest.
seems very simple? but im glad its simple

Well there is a bit more to it than that.

You need to send them directions of how to find the property.

You need to facilitate entry to the property. (Keysafe is best).

You need to deal with problems that may arise during their stay.

You may need to provide an inventory of what the cottage offers/contains and take an inventory after each guest.

You will need to sort out repairs and breakages.

You will need to supply local information so that they can get the most out of their stay.

I am sure I will think of some more.

HI guys,
sorry i think i need to clarify.. i am refering to serviced apartments

In that case, you will need daily maid service and laundry, but the other info. still applies.

People expect a high standard of service and cleanliness so that will need to be your focus.

(17-08-2012 03:04 PM)julie_ford Wrote:  HI guys,
sorry i think i need to clarify.. i am refering to serviced apartments

Julie,

Look at my post and Mary's. What you offer is not the full determination of the legal framework the property will fall under. If I am an IT contractor and I move to your property for a period of time and I have no other home in the UK yet work here, the unit could be legally seen as my residence and all the AST rules apply.

It is a bit of an unclear slice of the market. If an Olympic athlete was in the unit during the Olympics, they would be here for work. If their family rented the unit with the athlete lives at the Village, they it is more likely a holiday let.

If you offer maid services (every 2-3 days or similar) that could help build a case that this is not a residential property and it is more like a hotel. Still not completely clear if a judge would want you to use the AST process for eviction or if you could quickly throw out the tenant like a hotel would do.

Back to the business model.

1. Has the owner of the property operated the property this way in the past? Is there lease, mortgage, and insurance policy aligned with the use so all the permissions needed are in place?

2. If you are the agent, do you get much in the way of short term business? If not, you will be ramping up an aspect of your company with limited use. If the property was operated as a short term let in the past, can you access the past clients and therefore market to them?

3. A short term let is more time intensive for the property manager. More check ins and outs. More marketing. More handling of cash/charges. Most companies that are in the short term let business will charge more for their services. They also do not have the ability to charge a booking fee or application fee like a normal AST letting agent. I have heard of places charging up to 25% of the short term let before passing on the net to the landlord.