Given the uncertainty around foreign travel this summer the staycation industry in the UK is currently booming and it seems that lots of people are considering taking advantage of that boom by renting their properties to holidaymakers.
If you are thinking about using your property as a holiday let this summer then here a few things you need to bear in mind:
- Covenants – if your property is leasehold then the lease may contain provisions which prevent the use of the property for short-term lettings. Freehold properties may also be subject to restrictive covenants which prohibit certain uses and so you should also check your title deeds to see if there are any relevant covenants.
- Mortgages – most residential mortgages will prohibit you from renting out your property without the consent of your lender and so you should check the terms of your mortgage to see if short lettings are permitted.
- Insurance – most household insurance policies won’t cover you for any damage done to the property by a short tem tenant so you’ll need to check with your insurer if you’re covered for holiday lettings.
- Health and Safety – even if you’re only letting your property for a short period of time you will be expected to comply with the various health and safety rules relating to the letting of residential properties such as installing suitable smoke detectors and testing any gas appliances.
- Income Tax – any income earned through holiday lettings is likely to be taxable.
- Planning Permission – if your property is in London and you are planning to rent it out for more than 90 days in the current calendar year then you will need to apply for planning permission to allow short short-term rentals.
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