30 Jun

Increase in short term landlords

Increase in short term landlords

Many homeowners across the UK are planning to rent out their properties as short term lets, according to a new survey.

Research from Direct Line insurance discovered that as many as 3.2 million people are considering becoming a landlord on a short term basis.

It is estimated that of those who already swap houses 69 per cent rent out their own property and 63 per cent swap houses.

A total of 58 per cent already rent out a room in their home on a short term basis as they aim to maximise income.

The average home owners expect to achieve around £54 per room per night in rental income. During peak times this can equate to £758 for an owner of a two bedroom property.

There is also set to be an increase in short term landlords in London as there are plans to remove a rule that prevents people from renting rooms for less than three months.

Current legislation requires all private home owners to apply for planning permission before renting it out, however, the Deregulation Bill will allow wannabe landlords the chance to let out their home on a temporary basis without having to pay for a council permit.

The changes could be very lucrative for Londoners, with an average of £116 per room per night, which could earn two bedroom property owners around £1,629 over seven nights. This could be further increased if they focus on renting out during key events, such as Wimbledon tennis championships and Chelsea RHS Flower Show.

However, home owners are being reminded that renting out a home can bring some extra income but it could lead to additional costs if tenants neglect their legal obligations. According to Direct Line, only 29 per cent of home owners who have rented out their property for a short time have not incurred any damage as a result.

"Short term lets can be a fantastic means of generating additional income, especially around holiday season. It is vital however, that home owners take the time to protect their properties," said Louise Lumley, head of the Direct Insurance's SELECT Premier Insurance sector.

"Bills to repair or replace items as a result of damage can be expensive and may cost more than the amount earned from the rental. We recommend property owners inform their insurer, as their requirements may be different if letting out their home and this will protect against damage caused," she added.

Research suggested that the average bill to replace or repair items was £326, with 20 per cent reporting damages of more than £500 and 14 per cent faced bills of more than 14 per cent.

Damage included a range of items, including furniture, soft furnishings, windows, doors and walls, electrical items and white goods.

There was also one in four reporting theft of items, while 23 per cent admitted there had been some form of emergency damage caused.ADNFCR-1222-ID-801731983-ADNFCR

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