Current Market Trends – the short term lets

The property market is fast and furious right now, and a new market trend caused by this for rental properties is demand for short term lets. There has been a definite switch in the enquiries we are receiving, which is a knock-on from the crazy world of property sales.

How is the property market impacting short term rentals?

We are currently seeing a major rise in enquiries from people who have sold their property and are looking for short term rentals. This is normally due to one of two reasons, either they have a delay on when their next property will be available, or they just haven’t seen anything out there to buy yet. To get around these issues and stop the impact of a property chain, many buyers are looking to move into short term lets while they seek out their next property. They see going into a rental property as an option to keep the chain going and not let their sale fall through, so totally understandable.

Many smart buyers are also seeing the inflated property prices and hoping they can sell, then step into the rental world short term until the market has calmed down a bit, this is a good option as they are likely to get a better deal on their next property by doing this.

What is the likelihood of getting a short term let?

The result of this is lots of enquiries for short term lets. Most commonly we are being asked for rental contracts at around 6 months. However, this does vary depending on the situation of the potential tenants.

And I am afraid I am having to be being brutally honest with anyone who makes that kind of enquiry. The demand in the rental market is high, it is high in all areas from short term lets to long term rentals and for all types of property. Not to mention Landlords can be fussy when trying to find the ideal tenant for their property, this is made worse by the high level of demand and they now have the pick of the applicants in many cases.

But as a potential tenant, you must also consider that every time there is a change in the tenant that it costs the Landlord in time and money. A change in tenant means void periods, maintenance, and agent fees to find new tenants, all costs to the landlord of change over regardless of the reason for change over. So, all being equal, if a landlord is presented with the option of someone who is looking long term or a 6-month let then he is likely to choose that longer-term prospect.

For those short-term potential tenants, this is coming as a bit of a shock, which is why I am honest to tell them that they may have a challenge, and there are plenty of agents who won’t be that honest and just add them to the long list of enquiries.

So, if you are looking for a short term let, what can you do? Well first off start the process as soon as possible, don’t wait until you have a couple of weeks before you have to move out of your old property. Secondly, be realistic about your search try and be as flexible as possible. For example, don’t dismiss a property simply because it is a little small or a little further out from your ideal area. At the end of the day as a short-term tenant, you will only need to live in the property for a short time so it doesn’t need to be perfect.

You can also do things to improve your likelihood of getting a property, for example, if you have pets this can limit your choice of rental property, you may be able to overcome this by having your pets stay with family or friends while you are in rented accommodation. I understand that not everyone can do any of the above, but if you can you could help to significantly improve your chances of getting a short term let.

For the landlords considering this market trend

For those landlords who are considering capitalising on this market trend, there are some things to consider. In most cases, a letting agent will advise you to choose the longer-term prospect as in most cases this makes good business sense. However, there are some alternative cases, such as if you have a property that you are unable to sell and yet is also sitting vacant for a short period of time.

For example, a property which you own but can’t move to for some time. There could be situations where a short term let will allow you to cover the costs of the property while it is otherwise not in use. However, these cases should be reviewed on a case-by-case basis and thoroughly discussed with a letting agent you trust to advise you.

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