Long let dilemma in London

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Londoner
Posts: 157
Joined: Fri May 21, 2010 1:13 pm
Location: London

Long let dilemma in London

Post by Londoner »

I have a two bedroom central London flat which I was just about to market as a holiday let. An ex work colleague called over the weekend to say that her cousin was coming to London on a short term work contract and was looking for accommodation.

The lady in question has since emailed me a couple of times and is very interested in the flat, she is coming over at the weekend to see it and possibly others.

I am not sure what to do, I was geared up for a holiday let but the redecoration has taken longer than expected and we have missed the summer season. If the lady takes the flat then we would have it back at the end of April. We would then market it this winter to get the bookings in for next year.

I know London is not a seasonal market but I am not sure that as newbies we would achieve the equivalent of 18 nights bookings per month over the winter period.

I have told her the minimum rental fee I want which is 20% higher than the weekly rents on other flats in the block that are let on AST's.She is happy with this figure plus bills.

If this all goes ahead what kind of leagal paperwork will I need to draw up, this is a private rental with her, not through her company. Would an AST cover it?

Is there anything else I need to consider before letting, we have never let the property previously as we lived there ourselves before moving.

Sorry for the long rambling post but any help or comments would be appreciated.

Londoner
KathyG
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Post by KathyG »

How long does she want it for? I'm pretty sure an AST has to be a minimum of 6 months but you could easily come to some arrangement there I'd have thought. Good luck!
Kathy
Waterfront location in Le Faou
"My goal in life is to become as wonderful as my dog thinks I am."
Londoner
Posts: 157
Joined: Fri May 21, 2010 1:13 pm
Location: London

Post by Londoner »

Hi Katiegirl,
Thanks for the reply
She wants it for a min of 6 months but up to 9 months.
I would like to have it back around Easter though, she said she is fine with that.

If she takes it I need to get a solicitor to draw up the paperwork as I have no clue.

Another question for London Rental owners, how far in advance do people usually book. Have had a look at a few calendars and they all seem pretty empty for next summer. Do people start to book after Christmas is over?

Thanks

Londoner
Nightowl
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Post by Nightowl »

We have done both sorts of rentals from the properties that we now let as London rental.. They both have their merits. The downside of long term tenants is that you have wear and tear from day to day living and you might find that you'd need to redecorate or certainly have a full deep clean plus maybe some repainting and repairs after the long term rental. If you have a garden we have found tenants don't look after it so you'd have that to do as well.

Also in my experience, tenants' plans don't always work out and particularly if you are doing a favour to a friend, you might feel obligated to make concessions that you wouldnt otherwise. If she needs to stay longer than planned would you feel a heel for kicking her out. If she leaves it in a state, where does that leave you in keeping the deposit back from a friend of a friend. It can be difficult.

You would need a watertight contract if you absolutely MUST have a definite date when the property must be vacated.

The up side is that the tenant pays all the bills, the council tax etc. A down side is if you are supplying all the furniture and linen etc you might find you have to replace some because of wear and tear at the end of the let (but linen etc needs regular replacing in any case with holiday lets).

Re holiday lets in London - my summer bookings are usually well in advance, but other dates are often booked just 6 weeks to even 2 weeks ahead. At the moment I am getting enquiries for Sept/Oct and December. November is always quiet. I don't expect to be fully booked for the winter months but usually I get about 10-18 nights or so for Nov - Jan/Feb which are the quietest and the rest of the year its generally more. Having said that the London market has expanded over the past few years and there is a lot more competition.

When we started off I wasn't sure how to price and looking back now, I was far too cheap and people virtually bit my hand off to book from day 1 - that wasn't a bad thing to be honest, we got some bread and butter bookings and realised it was a viable business and then adjusted the prices as we got a feel for the market rate. We are in our 3rd year now and I'm very happy with our bookings rate.

hope this helps.
Nightowl
Forever going one step forwards and two
backwards......
Londoner
Posts: 157
Joined: Fri May 21, 2010 1:13 pm
Location: London

Post by Londoner »

Thanks for the detailed response nightowl. Yes, there is plenty to think about!
I hope this lady will be ok, my ex colleague has know her for 25 years and can vouch for her but you never know.

Let's see if she still wants it arfter viewing this weekend. I am sure she is viewing others as well so it may not even happen.

Thanks for taking the time to respond

best wishes

Londoner
Londoner
Posts: 157
Joined: Fri May 21, 2010 1:13 pm
Location: London

Post by Londoner »

After much consideration and lots of emails back and forth we have decided not to go with a long term let. We became increasingly uneasy about it and the lady also wanted to bring a pet which was a deal breaker for us.
Back to the original plan and must get the flat advertised over the weekend.
Thanks to all who responded

Londoner
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