The benefits for landlords in using Airbnb

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Airbnb and similar services that match landlords with short-term tenants provide opportunities for landlords. Generally, short-term rents will be higher than for permanent lease rents, but there is no guarantee that Airbnb will find tenants when properties are empty.

The Residential Landlords Association (RLA) reports that 7% of their members have used Airbnb to find tenants. There are two situations where landlords can find short-term tenancies a useful business strategy. When a tenant leaves, and before a new tenant moves in, there can be a gap when the property is empty. Short-term rental means that the landlords continue to receive an income before a new tenant has been found.

The second reason for using short-term leases is when the property is for sale. Many buyers do not want a property with sitting tenants. Short-term tenants provide money for the landlords until the property is sold.

A small number of landlords only rent out property for short term renters.

Landlords who want to arrange short-term rents need to inform both the commercial mortgage lender and their insurance provider. Their existing insurance may not cover short term rents so will need to be changed. Some buy to let mortgage conditions prohibit short-term lets or will require a new insurance policy that covers short-term leases. Landlords need to negotiate with the lender if their mortgage does not cover short term rentals, or use a mortgage broker to find a new commercial mortgage deal that can be used for short term lets.

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