Converting to furnished holiday lettings?
I am considering converting one of my flats into a furnished holiday let. There will be plenty of short term tenants in the area as my flat is close to a number of attractions in Manchester. However I would be grateful for some advice on:
a) Do all the tenants have to be genuine holiday makers? There may be a few who come for short term work (1 week or less)
b) I know the regulations from the .gov website but are there any other pitfalls / extra regulations I need to watch out for.
I will of course be providing some extra services like pick up, organising tours, some breakfast provisions.
Thank you for your help
Ajith
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Member Since February 2011 - Comments: 3453 - Articles: 286
3:03 PM, 18th April 2017, About 9 years ago
Hi Ajith,
Don’t forget business rates >> https://www.gov.uk/introduction-to-business-rates/self-catering-and-holiday-let-accommodation
8. Self-catering and holiday let accommodation
If your property is in England and available to let for 140 days or more per year, it will be rated as a self-catering property and valued for business rates.
If your property is in Wales and both available to let for 140 days or more per year and actually let for 70 days, it will be rated as a self-catering property and valued for business rates.
The Valuation Office Agency (VOA) works out the business rate based on the property type, size and location, and how many people can sleep in it.
‘Single bed space’ is the term used to describe how many people can sleep in the property.
Member Since June 2014 - Comments: 325
2:49 PM, 22nd April 2017, About 9 years ago
For Furnished Holiday Lets (and Serviced Apartments) no restriction if let for holiday or short term accommodation. Will need specific building & contents insurance and if a residential (BTL) mortgage then may have to consider changing to a commercial mortgage as most lenders do not allow short term letting. If leasehold or part of a factored block, may be further restrictions. For HMRC Self Assessment return, FHL income and expenditure separate to BTL business.
Property fit-out much the same as for a good quality furnished let, but to include bedding, towels and cleaning service.
Typically advertise on AirBnB and Booking.com, which provides some protection against damage etc.. Need to consider key access and ensure quiet living for other residents around you property, Otherwise will soon get complaints if wild stag weekends!