SHORT TERM ACCOMMODATION CAMBRIDGE

A lucrative opportunity for property owners in Cambridge

For property owners, especially those with second homes, and for people considering investing in short stay properties, there is an excellent opportunity to develop a robust primary or secondary income stream, with a number of significant benefits and advantages.

Making your primary home, second home or investment property available for Cambridge short term rental means you’ll enjoy:

• Higher income potential than longer term rentals
  Short term rentals in Cambridge are generally more expensive per day than long term rentals, meaning a higher income yield over a shorter period of time.
• Control over earnings
  With short term rentals you decide – oftentimes based on the standard of your fittings, furnishings, unique selling points and more – how much you can charge per day for your property. You can ‘upgrade’ your furniture, for example, to a really premium standard and charge accordingly.
• Greater flexibility as a property owner or landlord
  Short term rental gives you far greater control over when your property or properties are available. You may want to go on holiday and let your primary house, for example, but live there when not on holiday. Or you may want to block certain periods of the year for friends or family to stay.
• Less complicated than long term rentals
  Short term rentals give you the advantage of earning an income from your property without having to commit to a long term Assured Shorthold Tenancy agreement (AST), and let’s face it, less complicated paperwork is always easier!
• Tax Advantages and Relief Schemes
  HRMC considers Holiday Lets as a trade which means that there are special allowances and reliefs, including:
  • Capital Allowances – If you are buying new beds, sofas, furniture, appliances etc, you can claim capital allowance. You can even have tax relief for upgrading the fixtures and fittings to higher standard, something you can’t claim with Buy To Let.
  • Mortgage Interest Relief – Under present tax rules, you can claim 100% relief. This means that you pay less tax than you would under Buy to Let.
  • Capital Gains Relief – When it comes to selling your property, HMRC will apply a capital gains tax. However, there are a number of reliefs that are available that you wouldn’t have from a Buy to Let property including Entrepreneurs Relief, Business Asset Disposal and Reliefs, Gift hold-over Relief, Inheritance Tax, Small Business Rate, and others.