Beyond the holidays: The case for long-term property rentals.

As the summer season draws to a close, I have been approached by clients looking to rent their properties, longer term over the winter.  In recent years, the landscape of property rentals in Poole, has undergone significant changes. The surge in holiday lettings post-pandemic has sparked a lively debate about the merits of long-term rentals compared to your shorter-term holiday lets.

The Current State of the Rental Market

Before diving into the advantages, it’s essential to understand the current rental market landscape in Poole. According to recent data:

• Private Rented Sector:

As of 2024, there are approximately 10,000 homes in the private rented sector in Poole, reflecting a steady demand for rental properties.  According to Rightmove the average property added for rent receives 17 enquiries this is more than double the rate of 2019.

• Holiday Lets Surge:

Since the pandemic, there has been a notable increase in holiday lets. The number of properties converted to holiday rentals in Poole has risen by around 30% over the past three years, driven by the booming domestic tourism sector and the shift in travel habits.

So Why entertain the idea of long term lettings?

Stable Income: Long-term rentals provide consistent and predictable income, which is particularly valuable in uncertain economic climates. Landlords benefit from regular monthly rent payments, which can be crucial for covering mortgage repayments and property maintenance costs. In contrast, holiday lets are subject to seasonal fluctuations and may not guarantee a steady income throughout the year.

Lower Management Costs: Managing a holiday let typically requires more hands-on involvement, including frequent cleaning, marketing, and guest management. In contrast, long-term rentals usually involve less frequent turnover, reducing the need for constant property upkeep and administrative tasks. This can result in lower overall management costs and less strain on landlords.

Reduced Vacancy Periods: Long-term tenancies generally result in fewer vacancy periods compared to holiday lets. With the higher turnover of guests in holiday rentals, landlords may face extended periods without income while searching for new guests, especially during off-peak seasons

Supporting Local Communities: Long-term rentals contribute to community stability by providing residents with secure housing. This stability supports local schools, businesses, and services. In contrast, a high concentration of holiday lets can disrupt local communities, lead to higher property prices, and create a transient environment that affects community cohesion.

Housing Affordability: By prioritizing long-term rentals, landlords contribute to addressing the housing affordability crisis. Poole, like many towns, faces challenges with affordable housing, and increasing the stock of long-term rental properties can help mitigate these issues. The shift towards holiday lets can exacerbate affordability problems by reducing the number of properties available for local residents.

Simplified Regulations: Long-term rentals are governed by established and relatively straightforward regulations. Landlords benefit from well-defined tenancy agreements and legal protections under the Housing Act 1988, which provide clarity and stability. Conversely, holiday lets are subject to a more complex and evolving set of regulations, including potential local authority licensing requirements and restrictions.

Risk Management: The legal framework for long-term rentals includes protections against abrupt eviction, which can provide landlords with a clearer path for resolving disputes. In contrast, holiday lets can involve more frequent legal complexities related to guest complaints, damage, and compliance with various short-term rental regulations.

The advantages of long-term rentals in Poole, Dorset, are clear when considering financial stability, community impact, and legal simplicity. While holiday lets have certainly seen a surge in popularity, long-term rentals offer a range of benefits that align with both landlord interests and broader community needs.

By opting for long-term rentals, landlords can enjoy steady income, lower management costs, and contribute positively to local housing stability. In a period of economic and social flux, long-term rentals offer a reliable and community-focused approach to property management that stands in contrast to the often unpredictable and disruptive nature of short-term holiday letting. For a no obligation valuation of your property please contact us