Serviced Accomodation - Is the bubble about to burst?
With all of the talk around serviced accommodation relating to the 90 day rule, I thought that I would type in this phrase to Google. Unfortunately it would appear that the whole world is not obsessed as much with serviced accommodation as I am. Everybody else appeared to want to talk about when it was appropriate to have sex rather than the effect such a rule would have on your rental income. More of this later!
Anyway back to serviced accommodation and the 90 day rule which states that owners cannot let property for more than 90 days in a given year on a short-term let. If an owner wants to let for longer they must seek planning permission for "change of use" from the council. This appears very much to be a London thing but I wonder if this is starting to concern those letting property especially in Edinburgh where I understand that the first time buyer market has been greatly affected as investors looking to hoover up properties to rent out on a serviced accomodation model. AirBnB were talking about this in January 2018 but nothing has come of it yet! Something may need to be done because the first time buyers are squeeling. I understand that it is becoming increasingly difficult for first time buyers to get a foot on the property ladder in the capital as they just cannot compete with the investors.
And what about the likely backlash from the recent Glasgow case which had the local council banning a landlord from using his property for serviced accomodation. It now appears open season if you live in a tenement and you don't want your close turned into - take your pick
(b) year round gaff
then simply make a complaint to the council and that will be the end of your troubles. This will undoubtedly lead to an increase in NIMBY type complaints which will ultimatley lead to bans. I have to say that if I lived in a tenement that I had bought in the West End and constantly was being woken up at all hours then I'm not sure that I would be too pleased! It would now be music to my ears (can you turn that down please!) that I now had a way of getting rid of these bloody people.
There is also darker side to AirBnB that I had not appreciated until recently. This came to my attention just the other week when I was talking to an investor who had been doing the AirbnB thing for years. He had been a stickler for vetting his guests and in fact meeting them at the property. He was now having to turn away guests. How many of those reading this do that? Anyway he had begun to notice that alot of his bookings were begining to take - how can I say this - attracting a certain clientele who were maybe not so interested in the day rate rather than the hourly rate. He regaled me with all sorts of stories that he had heard from other AirBnB investors where certain - how can I put this - toys and other accoutrement had been left for the cleaners to dispose of. Now you may laugh but it is not beyond the bounds of possiblilty that if you as an investor know this thing is going on - in the eyes of the law are you facilitating this kind of thing? Now that's not the kind of thing that you want on your CV is it?
So as Hair Cut 100 were want of singing - Where do we go from here? Is it down to the lake I fear. Ay yah yah yah ayah......... Ay yah yah yah yah ayh...... Hear we go.........................