Property is one of the highest growth and lowest risk investment portfolios in the UK for those with some spare cash to invest and who want to make their money grow.

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However, recently landlords are under increasing pressure with higher tax burdens and crippling mortgage rates. Many new policy initiatives could make managing long-term tenancies more difficult for landlords, such as banning no-fault evictions, and increasingly higher standards on Energy Performance Certificates. This means many landlords are deciding to sell up rather than risk financial ruin.

For those who still want to keep their investments in property, luckily there are other options, even within the rental market. One consideration is renting property on short-term and holiday letting platforms. Here are some considerations.

Money without the Hassle

Airbnb is a way to rent out your property without running the risks that can arise from long-term rentals, including tenants refusing to pay rent and refusing to leave for any other reason. Evictions are incredibly stressful, time-consuming and expensive. If you don’t have income protection through landlord insurance, a tenant’s refusal to pay rent can also be crippling if you are still liable for mortgage payments on the property.

With short-term holiday letting, however, you are not committing your property in the same way. And the best thing is, if you don’t like a renter, you can ask them to leave on the spot. The worst that can happen is a refund.

House Hacking

In the UK, house hacking is when someone splits a property into multiple units and lives in one while letting out the others. It’s convenient, you can keep an eye on your property and returns can be really high. If you own an existing property and wish to split it, it’s worth checking with a conveyancer or transfer of equity solicitor such as https://www.parachutelaw.co.uk/transfer-of-equity-solicitor to see if this is possible and allowed in your area before you take any sledgehammers to walls.

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More Work

Though the returns can be high, the work involved can also be higher. You may wish to get involved in cleaning and managing the property yourself, or you can hire others. Either way, most people don’t need to think about this when managing long-term tenants. But lots of Airbnb landlords actually enjoy this aspect!

By ZsuNC

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