The benefits of a brief relationship: high returns on short lets

This four bedroom, four bathroom converted barn in West Sussex is available through Hamptons International for £1,500 a week.

Lauren Thompson

Last updated at 12:01AM, December 6 2013

Fancy bringing in some extra cash this Christmas? Then think about renting out your property on a short-term basis

Renting out a property on a short-term basis can be a lucrative business, especially over the festive season.

Lets that last from a few nights to six months can offer higher returns and greater flexibility than longer tenancies. Demand often spikes over Christmas and new year from international holidaymakers, shoppers or those simply wanting to escape their in-laws.

“You can charge about 20 per cent more over Christmas and New Year’s Eve because demand is so high from visitors looking for an alternative to hotels.”

Festive premiums aside, landlords typically can charge between 30 and 50 per cent more rent for a short-term stay than a long-term tenancy, making returns look enticing throughout the year. Ivy Lettings has a one-bedroom apartment on Cadogan Place, West London, from £195 a night —  still relatively good value compared with a hotel.

Other hotspots include the centre of university cities such as Oxford, Cambridge and Birmingham. Nigel Griffith, lettings manager at Hamptons International’s Oxford office, says: “In Central Oxford landlords can roughly charge per week what they would normally get per month on a longer-term tenancy.”

Some landlords let their main property if they often work away from home, but this doesn’t mean that they have to give it up over Christmas. Claire Bramwell-Pearson and her husband Christopher, both 54, are renting out their five-bedroom home near Bath as they decamp to London while their daughter studies at the Royal College of Music.

Mrs Bramwell-Pearson, a graphic artist, says: “We only allow tenancies during term time, which means we get to enjoy the cottage during Christmas and the summer holidays. It’s a gorgeous family home and we wanted to keep that flexibility.” The cottage is available through Hamptons International for £2,500 a month.

However, rewards come with responsibilities, costs and risks. Short lets have higher marketing and maintenance costs because of the high turnover of tenants. You must have a fully furnished property in excellent condition with good TVs, wi-fi and parking. You also must pay for utility bills, arrange adequate insurance and carry out gas and electricity safety checks.

Tenants may pay a deposit but, since they often pay in advance, are not usually subjected to rigorous identity or credit checks. This means that landlords can be less certain who is in their property, although you can stipulate, for example, no children under 10 or couples under 30.

It is easiest to use an agent to find tenants and manage their stay, but expect to be charged about 20 per cent of the rent. For this fee, agents should take care of everything from finding tenants and checking them in and out, to ensuring that the property is cleaned and linen provided.

Jane Ingram, head of residential lettings at Savills, adds: “Beware that some local authorities in London, such as Westminster and Kensington & Chelsea, do not allow you to rent a property for less than 90 days.

“And if your property is leasehold, the lease may stipulate a minimum sub-let time of, say, six months. You also need to get permission from your mortgage lender as some prefer minimum rentals of six months.”