The difference between Holidays Lets and Assured Shorthold Tenancies (AST’s)
The term ‘holiday let’ is often used loosely, however this can be a dangerous mistake for landlords.
All landlords are aware of the definition of an AST:
– The property is to be let to an individual(s)
– The property is to be used as that individual’s sole or principle residence
– The annual rent is less than £100,000
– The Landlord is not deemed to be a resident landlord
A Holiday Let, however, is, as stated in the name, intended for someone who is on holiday. A holiday let can be deceiving, as the requirements are mostly the same as for an AST, however holiday let agreements should clearly state their purpose. An example of an unpleasant situation caused by this confusion would be if a couple were to need a rented property whilst their own property was being refurbished, they may quickly sign a holiday let without realising that this cannot be extended. The fact is that holiday lets can rarely be extended, and are not required to serve notice, which can be extremely stress evoking for tenants. We advise landlords to always be aware of who they are renting to, and as an estate agency we offer background checks to avoid these sorts of problems.
Key definitions:
Holiday lets: the property is let and used for a holiday only. The guest should have a main home somewhere else and the duration of the let is less than three months. To avoid confusion, it is a good idea to outline in your agreement that the property is let only for a holiday.
Resident landlord: when the landlord lives in a separate part of the property, e.g. a granny annex of ‘garden flat’.
