Following the recent announcement confirming the abolishment of the Furnished Holiday Letting (FHL) tax rules in 2025, many landlords who let their property on a short term basis are now exploring their options, to include medium to longer term letting. Currently landlords of short term holiday lets/Air BnB’s have benefited from tax advantages, however, the changes will make it much harder for individuals to reclaim some of their costs associated with letting. The aim of these changes (apart from raising revenue) is to eliminate the advantage furnished holiday lets have benefitted from, now being treated the same for tax purposes as unfurnished medium to long term lets.

Not only will these potential changes make it harder for these types of letting to be profitable, a further consideration is, post pandemic with poorer occupancy levels, income has been effected. In addition, with increasing maintenance, servicing and energy costs there are also other advantages to consider in passing some of these costs onto a longer term tenant.

What are the benefits of long term letting?

Council Tax and other bills paid

In most cases, during a longer term tenancy and as part of the tenancy agreement, the tenant takes on the responsibility to pay the council tax and all other utilities to include electricity, gas, oil, water and drainage.

Less void periods

When letting the property on a longer term basis the majority of tenancies are for a period of 6-12 months, or longer by negotiation. As part of the tenant selection process we will aim to match tenant and landlord together based, on the right length of tenancy that suits both. With a tenancy in place for a longer period you will receive a stable income over the whole period. As average tenancy length is ever increasing, where circumstances suit, the tenancy along with the income, can continue beyond the initial period.

Less maintenance and commitment

With no more weekly changeover days and no requirement to provide furniture, linen or white goods, maintenance costs, as well as your commitment in time, are both minimised. Annual compliance checks and routine servicing of appliances is required and we would recommend routine regular visits to the property; but, if the tenancy is being conducted in a satisfactory manner, your involvement should be minimal.

Considering letting your property?

If you are curious to know more about letting on a longer term basis or would like to know the potential letting value of your property then contact a member of our team.

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Are you considering the alternatives?

What are the benefits of long term letting?

Council Tax and other bills paid

Less void periods

Less maintenance and commitment

Considering letting your property?