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Tenants breaking lease - problem getting new ones - should I go for short-term lets?

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  • 10-04-2009 4:25pm
    #1
    dgaughran
    Closed Accounts Posts: 8 ✭


    Hi,

    My tenants both lost their jobs in the space of a week and are returning to Poland at the end of the month. They had a lease up til September, but can't afford to stay on.

    I haven't had much interest in the apartment even though I have cut the rent by a lot. This is generally not a great time of year to be looking for tenants, and traditionally, September was always good.

    So, I started thinking, should I go for short-term lets/ tourist lets over the summer period and then go for a long term let in September?

    What are the obvious drawbacks to this idea? The way I see it, it could make more money than a long-term let and tide me over until the easier market of September.

    Any thoughts?

    Dave


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    #2
    MysticalSoul
    Registered Users Posts: 1,266 ✭✭✭MysticalSoul


    Personally, I would put in the ad that you are open to both short or long term lets. What is the minimum term you would consider? I had a query as regards the room I have, but turned them away as they only wanted a place for a month (Spanish student I think), however 3 months is more realistic. Also, once the 3 months is up, if the potential tenants stay on, they may in fact be interested in staying on (assuming they are not tourists). It is hard to get anyone at the moment generally, due to fear of moving, as jobs are no longer secure etc.


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    #3
    dgaughran
    Closed Accounts Posts: 8 ✭dgaughran


    To be honest, I am just throwing around ideas. What I had considered was putting it on a holiday home website and taking people for as little as three days at a time.

    Other options are short lets like you mentioned.

    What is the price difference generally on a short let? I know short lets generally are more expensive because they provide less security for the landlord? But does this happen in practice in the current market and given the time of year (summer coming)?

    I really don't know, just asking.


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    #4
    Xiney
    Registered Users Posts: 8,085 ✭✭✭Xiney


    They are also more work - you'd have to get someone to clean the place between tenants so you'd have to factor in the price of the cleaner/your time.


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    #5
    dgaughran
    Closed Accounts Posts: 8 ✭dgaughran


    I am aware that there would be extra costs, hassle, possibility of damage, and greater wear and tear. I am trying to figure out how much extra could be made in short term lets, and whether the extra would be worth the hassle.

    Has anyone any experience with this? I know myself that I had to rent apartments short-term before, and there was a real shortage of supply. However, that was in 2006, and the situation may be very different now.


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    #6
    athtrasna
    Closed Accounts Posts: 13,420 ✭✭✭✭athtrasna


    If it's an apartment you must check your lease with the management company. Ours does not allow short term or business letting. If I was an owner in a block where apartments were let short term I would have security issues for starters and also insurance concerns.


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    #7
    Victor
    Registered Users Posts: 78,392 ✭✭✭✭Victor


    athtrasna wrote: »
    If it's an apartment you must check your lease with the management company. Ours does not allow short term or business letting. If I was an owner in a block where apartments were let short term I would have security issues for starters and also insurance concerns.
    Indeed. There may also be similar planning permission issues.


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    #8
    antoinolachtnai
    Registered Users Posts: 9,787 ✭✭✭antoinolachtnai


    It depends where your property is, but you would need to be getting a lot more per week to justify the overhead (like four times what you would expect to get it renting monthly).

    Short term lets tends to be a good business when the economy is strong, not when it is weak. Otherwise it is cheaper to stay in a hotel.

    If you live/work near the property and are in a position where you /can service it yourself, this might suit you though.


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    #9
    Bearcat
    Closed Accounts Posts: 1,326 ✭✭✭Bearcat


    i took a gamble with high end stuff. Have done a few 4 month leases on the basis things work out with the tenants workwise and they then stay......its better than having an empty unit. everyone must be getting divorced as i'm getting a lot of divorcees renting....its tough for them.


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    #10
    antoinolachtnai
    Registered Users Posts: 9,787 ✭✭✭antoinolachtnai


    Personally, I think a five-month lease is the way to go for everyone. That gives you an opportunity to ask them to leave well in advance of the Part 4 tenancy deadline (on the other hand it also gives increased flexibility for the tenant). But it is important to make it clear to them orally that you want them to stay beyond that.


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