Most landlords aim is to maximise their return on investment with minimal hands-on involvement.
Security and a predictable income from well-referenced and reliable tenants are usually high on the agenda. Running a guest house is a different matter, yet some tenants are using temporary accommodation platforms such as Airbnb to profit from a property at their landlord’s expense.
This surreptitious sub-letting may not be illegal, but it is almost certainly in breach of a good tenancy agreement designed to prevent such activities.We heard of one example where over 300 people had stayed in a tenanted London flat in under a year, mostly for one to three nights. The landlord was blissfully unaware and the official tenant, who had not spent one night in the flat, had pocketed a significant profit from the landlord’s investment, with little care for how the property was being treated.
Not only does such sub-letting substantially increase wear and tear on the property, but it is almost certain that it would also breach any mortgage conditions, as well as potentially invalidating building/contents/third party liability insurance. Additionally, if a temporary “guest” decided to take up residence, it would be extremely difficult to evict them, as the “holiday tenant” does not have any contractual agreement with the landlord.
So when choosing an effective and responsible letting agent, do ask them what lengths they go to in ensuring that your investment does not become a guest house, or worse.
Are they simply letting agents, or will they be your dedicated investment manager, protective of every property in their care?
Swoople.com can be a great starting point here, as it allows you to assess and compare letting agents early in the process. So, when you’re ready to instruct, you’ll have the confidence of knowing exactly who’s right for you.