Many investors are using commercial mortgages to purchase residential property to rent to short-term tenants using agents like Airbnb, HomeAway or TripAdvisor. According to property company PassTheKeys there are steps that landlords can take to double the rent they charge for short-term lets.
Alexander Lyakhotskiy, founder, and CEO of hospitality at PassTheKeys says that landlords need to think of their property more like a mini boutique hotel in order to double the rent. He said:
“While one property can expect to achieve £1,500 a month, another better equipped and professionally maintained property can charge £3,000 a month.”
PassTheKeys rates home with stars. The top class is 5 Stars. To achieve this status the property needs to be furnished and decorated to a high standard. Amenities that guests find in top hotels, such as hairdryers and hot drink making facilities in bedrooms, can help increase the star rating. A good television and Wi-Fi also help.
Alexander Lyakhotskiy says that landlords should not see themselves in the property business, but the hospitality business.
Location is also important. In Manchester where there is a lot of short-term accommodation guest pay around £70 – £80 a night. In Bath, with less accommodation, the nightly rent can be £140.
Landlords with existing buy to let properties who want to let to short-term tenants need to check with their commercial mortgage provider to make sure that short-term tenants do not contravene the conditions of their mortgage.