The Pros and Cons of Short-Term Lets in Exeter

Short-term lets, facilitated by platforms like Airbnb, have become increasingly popular in Exeter. While they offer potential benefits for property owners, they also come with challenges that landlords should consider. Here's an in-depth look at the advantages and disadvantages of short-term lets in Exeter.

Pros of Short-Term Lets in Exeter

1. Higher Rental Yields

Short-term lets can generate higher rental income compared to traditional long-term rentals. In tourist hotspots like Exeter, property owners can capitalize on peak seasons, potentially earning more in a few weeks than they would in a month with a standard tenancy.

2. Flexibility and Control

Landlords have greater flexibility with short-term lets. They can choose when to rent out their property, allowing for personal use during off-peak periods. This control can be appealing for those who want to balance rental income with personal accommodation needs.

3. Diversification of Income Streams

For property owners with multiple assets, short-term lets provide an opportunity to diversify income streams. By offering different types of accommodation, landlords can attract a wider range of guests and reduce reliance on long-term tenants.

Cons of Short-Term Lets in Exeter

1. Regulatory Challenges

The UK government has proposed new regulations to manage the increasing number of short-term holiday lets. These measures include a registration scheme and a requirement for planning permission. While these proposals aim to balance the housing market, they may impose additional responsibilities on landlords. The Guardian+1

2. Impact on Local Housing Market

The proliferation of short-term lets can reduce the availability of long-term rental properties, leading to higher rents and decreased housing options for local residents. In areas like Devon, the rise in short-term lets has been linked to a shortage of homes for locals. Landlord Vision+2BritWealth+2News+2DevonAir Radio+2

3. Increased Management Responsibilities

Managing short-term lets requires more effort compared to traditional rentals. Landlords must handle bookings, guest communications, cleaning, and maintenance between stays. This increased workload can be time-consuming and may require hiring additional help.

4. Potential for Property Wear and Tear

With a higher turnover of guests, short-term lets can experience more wear and tear on the property. Frequent cleaning and maintenance are necessary to keep the property in good condition, which can lead to higher operational costs.

Conclusion

Short-term lets in Exeter offer opportunities for higher rental income and flexibility but come with regulatory, management, and maintenance challenges. Landlords should weigh these pros and cons carefully and stay informed about local regulations to make informed decisions about short-term letting.