Self Catering Edinburgh and Holiday Accommodation - Landlord Information
Edinburgh Flats Partnership working in conjunction with our sister company, Edinburgh Flats Management provides property owners with a flexible range of services for self catering apartments (or short-term let properties). Our services include:
- web advertising
- booking and invoicing
- management service tailored to your needs
- fixed price guest changeovers for property owners who want occasional support
- consultancy to help owners buy or set up short term lets.
Frequently Asked Questions
What is a Self Catering/Short Term Let Property?
A short term let property is sometimes described as a “furnished holiday letting” – the HM Revenue and Customs term. They are properties let for periods of anything from days to weeks rather than the more common 6 month letting done for normal buy-to-lets. The HM Revenue and Customs definition is important because they treat these properties as a business rather than as an investment which means there are important tax advantages over longer term lets. Their definition (from the 2005-2006 tax year when the definition was updated) is:- available for holiday letting to the public on a commercial basis for 140 days or more, and
- let commercially for 70 days or more, and
- let for periods of longer-term occupation (more than 31 consecutive days) for not more than 155 days during the year.
What are the key differences between self catering/short term and longer term let properties
- Short term let rents are normally higher than longer term let rental
- The occupancy of the property will often be lower than for properties let for longer periods as there are more changeovers of occupants.
- Short term let property is usually more comprehensively equipped than a longer term let. It is normal to provide facilities such as TV, DVD players and internet access as well as bed linen, towels, etc.
- The owner of a short term let property pays for utilities, council tax, TV licence etc
- Tax advantages are outlined below.
- The owner or manager of the property being at the property frequently to do changeovers means simple maintenance is being done continually
- Whilst people often ask to have facilities such as a washing machine, they don’t often use them
- People staying for a short period don’t normally re-arrange furniture or attach things to walls
- Short term let properties are usually let with terms and conditions rather than a lease. In long term lets, the tenant is empowered with many rights over your property, the terms and conditions should be drafted to ensure this does not happen in short term lets.
- The visitor pays a deposit (normally of about 10% of the total rent) to reserve the property and then pays the full amount of the rent between 4 and 8 weeks in advance of their visit. This means the risk of non-payment of rent is low.
- The marketing and management effort is much greater for a short term let property than for a longer term let. There is a constant requirement to be looking for new visitors and there are many more changeovers.
- Less regulations. No licensing or landlord applications are required for the short term let properties. While the property still requires your duty of care (fire regulations, electricity and gas checks), you do not have to apply for a license, and no regular council inspections occur.
- Landlords who live outside the city, can stay at their property when visiting.
In summary, whilst the costs of a short term let are greater than a long term rental because more equipment is provided and the owner pays for more running costs than with a longer term let, the income can be more as well. There can be significant financial advantages in short term lets over longer term lets but only if the occupancy is high enough for the higher income to cover the extra costs, and it is appreciably more work to market and manage the property.
Whether it’s worth letting your property short term all depends on the occupancy you can get and the resources (your time or money to have the property marketed and managed) you are prepared to commit. The occupancy rate depends upon the property’s location and on marketing.
Who uses short term let properties? Whilst the government’s definition talks about holiday letting, many of the people who use short term lets are visitors who are on business, attending conferences, undertaking courses etc. Edinburgh Flats Partnership marketing targets these people as well as holiday makers. We approach colleges and universities, theatres, conference organisers and companies, and provide them with links to our web-site as well as targeting the traditional holiday maker.
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Who uses Self Catering/Short Term Let Properties?
Whilst the government's definition talks about holiday letting, many of the people who use self catering/short term lets are visitors who are on business, attending conferences, undertaking courses etc. Edinburgh Flats Partnership marketing targets these people as well as holiday makers. We approach colleges and universities, theaters, conference organisers and companies and provide them with links to our web-site as well as targeting the traditional holiday maker.What are the tax advantages?
The tax advantages are:
- Roll over relied on the replacement of business assets
- Gifts relief on business assets
- 'Entrepreneur's relief' which means that the first £1 million of capital gains are taxed at 10% rather than 18%
- after 2 years the property can fall outside your estate for IHT purposes
- Business losses can be set against total income and are not restricted to the holiday letting business. They are not, however, allowable for the purposes of Class 4 National Insurance
- Plant and machinery capital allowances\non furniture and furnishing used in the holiday letting activity are available\nas well as on equipment such as vans and tools so long as they are used in the holiday letting business.
- HM Revenue & Customs accept that Inheritance Tax (IHT) Business Property Relief(BPR) is available on properties used for furnished holiday accommodation.
- For more information on the tax position see HM Customs and Revenue web-site HMRC Furnished Holiday Lettings.Everyone’s tax position is different and you should assess your own position. We recommend taking professional advice.
Other benefits are:
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Should I let my property self catering/short term?
In our view the most important factor to consider is location. There are significant financial advantages to self catering/short term lets – if you can get a high enough occupancy. So it really depends on whether your property is somewhere where people will want to let short term. Edinburgh – especially the city centre – is a fantastic location for self catering lets because there is an active tourist industry, lots of conferences, universities and colleges and, of course, the festivals.
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What does Edinburgh Flats Partnership offer Landlords?
- Has facilities for owners to load details and photographs of their property easily. (There are examples and templates to help.) Alternatively, we can do this for you as part of our consultancy service
- Has been built using search engine optimization techniques meaning we maximize the hits for people looking for self catering apartments and holiday accommodation in Edinburgh and surrounding areas.
- Has links with other related sites so that people interested in coming to Edinburgh and surrounding areas can access the site easily
- Provides an availability calendar so that you can update your bookings. This avoids lots of enquiries for periods when you are booked and potential visitors can see what is available. Alternatively, we can do this for you as part of our booking and invoicing service
Web advertising on our well designed web-site which:
What does Edinburgh Flats Management do for Landlords?
We offer a full range of management services for owners of short-term let properties or investors interested in the short-term let property market. These are outlined below. If you want a service that is not described, please let us know and we will see if we are able to help. These services are available to Landlords who advertise their properties through Edinburgh Flats Partnership.- Maintaining the availability calendar for your property;
- Providing your terms and conditions and taking deposits when guests reserve the property
- Invoicing and collecting taking payment prior to the guests arrival
- Providing a monthly statement and remittance.
- Provision of a welcome pack as agreed with you (this will normally include tea, coffee, sugar, milk and biscuits)
- meet and greet of the guest on arrival to provide keys and show the property and its equipment
- for each guest changeover cleaning of the property including laundry
- taking a damage deposit and refunding it when the property has been confirmed as ready for the next guests. NB: This does not obviate the need for insurance, nor does it guarantee no damage, but it does appear to encourage guests to be careful.
- minor maintenance (light bulbs, sticking doors, marked walls etc) at guest changeover and as required.
- on call support and organising any emergency support or maintenance
- payments for maintenance and emergency support will be charged as incurred. These are accounted for on your monthly statement with payment to you being net of these payments
- recommending updates to the property and equipment
- some guests want the property cleaned during their visit. If the rental is for multiple weeks, we recommend a weekly clean which will be charged as agreed.
- cleaning laundry, provision of a welcome pack and preparing the property for guests
- meeting and greeting of guests, providing keys and explaining facilities
- administration as required by the landlord we
- the potential for your property, or proposed properties
- what needs to be done to prepare for letting. This can include sample inventories and information packs, if required.
- Preparation of a property for letting. This could encompass acquiring facilities and equipment, dressing the property, arranging photographs for marketing, preparing information packs, providing terms and conditions or any combination of these activities.
The Financial Management service includes:
The costs to Landlords for this service is 10% of the booking fee.
The Full Management service includes:
The costs to landlords for this service is charged as a fixed price for each changeover and depends on thie size of the property. The costs for each changeover are usually:
£90 for a 1 bedroomed property
£100 for a 2 bedroomed property
£110 for a 3 bedroomed property
Fixed Price Guest Changeovers
For landlords who normally manage the guest changeovers themselves, we provide a fixed price service to cover for those periods when the Landlord is away or simply not available to do the changeover themselves. This service included:
We will agree precisely what is to be done in each case and confirm the price. The usual prices are:
£90 for a 1 bedroomed property
£100 for a 2 bedroomed property
£110 for a 3 bedroomed property
The consultancy service includes:
A free initial meeting at which we advise on:Edinburgh Flats Sample Inventory
Living Room
- Sofabed & Sofa/chairs – there should be seating for the number of people the flat can sleep
-
SideTable, Coffee table or nest of tables
- TV, DVD player, broadband or wifi
- Waste bin
- Cushions, prints, rugs, accessories (vases)
- Books, DVDs and games can be provided for the odd rainy day
- Smoke Detector
- Place mats and coasters
- Tips Treat crockery and glasses as consumables and expect the odd breakage. Have a spare set. IKEA is good and cheap.
(Please note when furnishing a property you must adhere to the Furniture and Fire Safety Regulations.)
Upholstered furnishings must comply with the Furnishing (Fire) Safety Regulations 1988. This applies to furnishings that have been upholstered (ie: mattress, couch, cushions). All new furniture comes with a label verifying its safety. If you choose to use second-hand (or used) furniture, ensure that it has the appropriate fire-safety labels attached to it.
Dining table and chairs to seat the number of people the flat will sleep (the dining table can be a table with leaves that fold down to minimise the space it takes in the room)
Crockery, wine glasses, juice glasses and cutlery for the number of people the flat will sleepKitchen
- Oven, hob, extractor fan
- Fridge or Fridge freeze
- Dishwasher
- Washing machine/dryer
- Microwave
- Toaster
- Saucepan set,frying pan
- Cafetiere, Teapot, milk jug, sugar bowl
- Cruet Set
- Can Opener, Cork Screw and Bottle Opener
- Basic set of kitchen utensils e.g. Kitchen knives, Vegetable peeler, Grater
- Scissors
- Serving dishes, fruit bowls
- Chopping boards
- Waste bin
- Ironing Board
- Iron
- Vacuum Cleaner
- Mop, Bucket, Broom, Dustpan and brush
- Washing up brushes and dishcloths, T-towels
- Fire extinguisher and fire safety blanket The kitchen appears to be used mostly for breakfast – the toaster being used lots, drinks and storing snacks, etc. Washing machines are often requested and rarely used. Make cleaning equipment visible if you want people to use it
Bedrooms
- Beds
- Mattress covers and duvets to cater for all the bed combinations.
- Pillows and pillow protectors– 2 for each person the property will sleep
- Wardrobes and hangars
- Bedside tables
- Bedside lights for each bed (or side of bed)
- Sets of drawers
- Waste bin
- Prints, accessories
- Smoke detector
- Radio Alarm Clock
- Hair Dryer Short term let properties do not need lots of clothes storage. People don’t normally carry a full wardrobe of clothes! Single beds that can be arranged as doubles increases the flexibility of your property making it attractive to a wider market. Duvets a size larger than the bed (e.g. double duvets on single beds or king size duvets on double beds feel luxurious) A travel cot can be useful.Bed linen and Towels
- Duvet covers for each duvet size
- Sheets for each bed size
- Pillow cases for each pillow
- Bath Towels
- Hand Towels
- Flannels Tips: Have at least 2 sets of bedding for every possible bed combination (e.g. 4 singles, 2 king size sets for twin beds that cab be combined to make a king sized double) so that a set can be washed while the other set is in use. Similarly have 2 sets of towels for the maximum number of people the property can accommodate – so if it sleeps 4 have 8 sets of towels. Fitted sheets make it easier to make the beds up during the changeover. Ironed bedding provides a good look and feel.
Bathroom
- Towel rail
- Toilet brush for each toilet
- Toilet roll holder
- Accessories
- Bin - (preferably covered)
- Bath Mat
The bathroom is important and used lots – make sure it looks good and is hard wearing. Most visitors prefer showers to bathes, of course it is best if you could provide both. Ensure that the showers are protected properly from water dripping outside of it.
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