Switch from short-term to long-term lets in Edinburgh
Landlord advice: Long-term lets are basic necessities. Holiday lets are not.
COVID-19, in just a few weeks, drastically reduced demand for holidays lets and Airbnb-type of services in Edinburgh, in particular, and in Scotland, in general. Some holiday lets can be used by NHS staff transferred to fight the virus in hotspots (bigger cities like Edinburgh), but it will never replace the demand of around 4 million international visitors (2016 data).
When demand drops, prices follow: On 27.03.2020, there were dozens of beautiful Edinburgh properties available on Airbnb with prices starting at £22 per night. This amounts to £660 per month, if fully booked – including all utilities, council tax and fees.
Last week, we were approached by a landlord with around 10 holiday let properties – which were suddenly all empty. Many other investors in short-term let properties face a similar dilemma: stick to short-term lets a while longer, or switch to long-term lettings. In our opinion, long-term lets are a much safer bet these days
Coronavirus will not go away soon
Even if restrictions are lifted in early April, it will not mean that life will come back to normal – unless it is a ‘new normal’. COVID-19 and its threat will be with us until either a successful mass vaccination programme is instigated, or social herd immunity is acquired naturally (i.e. most of us contracting COVID-19 and gaining some immunity). There will be some travel restrictions from current hotspots of the pandemic. Tourists may be hesitant to travel abroad or use planes for many months to come. The virus may flare up again, as it did in Hong Kong. It creates lot of uncertainty for businesses reliant on international tourists.
If the epidemic persists in Scotland until July, The Edinburgh Fridge may well be cancelled (or ‘rolled over’ to 2021). Holiday lets are a seasonal business: most income is made between June and September. Even if all restrictions are lifted, we can safely assume that Edinburgh will attract less tourists in Summer 2020, than in 2019.
Licensing scheme for holiday lets
In January 2020, the Scottish government decided to empower councils to introduce licensing schemes for short-term lets. The Edinburgh Council welcomed the announcement. It means that from spring 2021, there will be a licensing scheme for holiday lets – and such properties will have to meet certain safety requirements. It can go both ways – either towards regular rental compliance, which is relatively straightforward – but what if the new requirements will be influenced by HMO standards? There was also a Scottish Government consultation on ‘tourist tax‘ which will certainly not make running a short- term let business cheaper.
Rising rents in Edinburgh
Although the rents have been rising year after year in Edinburgh (by 46% for 2 bedroom properties between 2010 and 2010), we expect the coronavirus crisis to have some impact on long-term lets as well, but it will not be nearly as severe as on Airbnb-type of lets. The worst-case scenario, as far as residential lettings is concerned, is slightly decreased demand for flats (fewer international students) and increased ratio of rent arrears (as some tenants will have lost their jobs). Luckily, the government has now provided a safety-net for tenants: 80% of salary paid by the state, although some renters may have to temporarily resort to housing benefit and universal credit.
Landlords whose tenants are unable to pay their rents may ask their banks for a mortgage holiday. In the end, people will need to live somewhere – but they don’t really have to travel abroad and use short-term lets. Having a roof over our head is a basic necessity. Booking a trip abroad is not.
Wavering short-term let Edinburgh landlords
If you are a short-term landlord considering long-term lets, feel free to contact us by phone or email. We can provide you with a software property valuation; a desktop valuation based on historical letting records or do a video link valuation of your property. While we temporarily limit face-to-face contacts, landlord agreements can be signed online. All tenant-side activities are carried out remotely: we do 3D online viewings; use a third party online referencing provider; create PDF inventories and sign tenancy agreements online, via Signable. We have been prepared to work remotely and remain open for business – so please get in touch with us if you need a long-term rental advice.
Jennifer Breakwell
2025-04-17
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Very professional and helpful. I have been using ELC to rent out my property since August 2022 and they have been very easy to deal with and very responsive to all property related matters. Would highly recommend to anyone. I then used ELC to sell my property and was very lucky to have Christina as my selling agent. I was selling from abroad and Christina just consistently went above and beyond for me throughout the whole process. I have never received such a personable and professional experience selling or buying a home, as I did this time with Chris. She was a godsend from start to finish and a true credit to Elc. I would recommend to everyone!
D Bro (Alotoffish)
2025-04-15
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I have had a fantastic experience, from the first moment I felt listened to and respected, throughout the entire process I have felt supported and we were able to get the sale we were hoping for, and I know it is due to the hard work of Christina and everyone else at ELC
Jade Taylor
2025-04-15
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Christina is a fantastic agent and was so helpful & assuring throughout the process of buying our first house. She was upfront, genuine & always came back to us very quickly whenever we had questions (& we had plenty!). Christina really steered the ship for us & got a lot done in quite a short timeframe. A lovely, first-class sales consultant. From J&S
David Garcia
2025-04-09
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Morgan was on time, very nice and helpful answering all my questions throughout the flat viewing and made me feel welcome. Thank you very much.
Adebayo Excel
2025-04-08
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Great 👍
Louise Sofokleous
2025-04-08
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I am a novice landlady but Alex of ELC was brilliant in helping organise all the relevant certificates and advertising the property. He informed me every step of the way. Morgan was also brilliant and answered all my many questions. ELC found tenants straight away and they moved in a couple of weeks later. Great service and would highly recommend.
Lisa Venter
2025-04-07
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The team at ELC have been a breath of fresh air.
Alex came back straight away with an application form and Holly was personable and helpful during the viewing. This was reassuring as it’s good to know you can communicate with your agents if you are renting and need support later down the line with the property. Loads of agencies out there are pretty rubbish at comms and use lengthy, clunky web processes so it’s good to experience this.
Helen
2025-04-04
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