Self Catering vs Long Term Letting: What's Involved?
What is involved if I decide to go down the Self Catering route with my flat?
Self Catering landlords' work is far more labour intensive than 'long-term' letting. But before you even think about your work load and commitment to the property, you need to objectively look at your property and decide whether or not it is appealing to a tourist, or short term stay visitor.
While many properties may have lovely locations for 'long-term' vistis or people buying a property (ie: gardens, quiet roads, large bedrooms), the short term visitor is looking at a property for different reasons. Usually they want to be very central OR very close to their purpose of their visit (ie: work; visit family). These visitors are not really interested if the area has good schools or has a large garden. Most guests won't even bother about the garden, because they don't usually spend much time in the property. Similarly, while period properties have lovely, and quirky features, guests usually want modern bathrooms, kitchens, and comfortable beds. New properties usually offer more what a guest is looking for, along with parking and/or lifts. So when considering whether or not your property is suitable for Holiday Letting, try to see yourself a visitor, and what you actually look for when visiting a foreign city.
What do I need to think about in the short term market
- Do you want to use the property yourself some of the time? If so, short term letting is a good option
- Are you depending on having a regular income? If you need a regular monthly income, longer term letting will probably be a better choice for you. The income from holiday letting whilst is usually more that long term letting, can be very erratic.
- What is your attitude to risk and the property. If you are emotionally attached to the property and would have difficulty dealing with damage or mis-treatment of the property, long term letting may give you some problems and short term letting will enable you to keep a closer eye on your property.
Location? You must consider your location when deciding whether or not your property will be well suited for 'Self Catering Holiday Guests' If your property actually located quite centrally so that it can attract Holiday visitors for short term visitors who are here to study or work in the area? Then self catering (holiday letting) is a good option. If your property is not in such an area, short term letting is less likely to be successful.