Tips on long-term rentals

[Stephanie]

Hi everyone, 

With short-term rentals temporarily on hold in several places due to Covid, we’re seeing ever-more hosts offering long term rentals. After all, it can be easier to deal with less- frequent changeovers, and have more time to get to know your guests too. 

But there might also be extra factors to consider: for example, making sure your guest is a good fit or that their schedule matches yours, or perhaps offering a weekly or monthly cleaning service. Those of you who have tried it might also have tips on how to attract these guests to your listing in the first place, by creating an office nook

Have you hosted long-term guests, and if so, what are your top tips?

Thanks,

Stephanie

[Mike-And-Jane0]

@Stephanie First tip from me:

Do NOT use Airbnb for long term rentals. There is no proper contract and no security deposit. Even worse if the TENANT does not pay the 2nd or subsequent months rent then you are on your own.

As yourself what would happen if you get a bad tenant and you will see how exposed you are.

[Samuel669]

Thank you for that advise, good to know. Are there any hosts in Barcelona with a room they rent in the apartment they live in ? I would like to hear from you. Because you are now faced  with only lets of 31 days, or more. Since the mayoress of Barcelona has effectively banned short term room rental in Barcelona !  I am sure there are many hosts like myself that rely on renting a second bedroom for income, it is now forbidden. With massive 60,000€ fines if (without adequate checking, or maybe just checking your profile on Airbnb) )  the city hall thinks you have been renting your room for less than 31 days. This has come about because of many unscruplous landlords that rent whole apartments ( without a license) on the premise that they live there, and it is quite right that they should be stopped. But the consequences of the ban, are that many individuals who genuinely want to rent a room out in their apartment, to help with mortgage payments or income have been stopped. If there are any pressure groups or individuals that want to come together to protest, I would like to join you. Excuse me for going off topic here.. If you know of a more appropriate discussion group to join on this subject let me know many thanks

[Sarah977]

While Airbnb is encouraging long term rentals, and guests are wanting them in these pandemic days, Airbnb needs to step up to the plate in making long term stays secure for hosts. 

No real security deposit, no payment guarantee beyond the first 30 days, no release of a guest's full name, Airbnb's frequent refusal to cover damages if the guest declines to, make long term rentals for hosts extremely risky.

Unless Airbnb addresses those issues appropriately, I would never take a long term booking through Airbnb.

Cleaning arrangements, host/guest schedules are minor factors compared to the lack of appropriate basic safeguards.

[Emiel1]

I regurarly host "long term stays" (actually i prefer them !), but for max. 3 months (with option to extend if needed).

- I do not use IB, so there is always plenty of room for communication to check if the guest is a good fit.

- I allways ask "what is the purpose of your stay" . If it is not for work or study or internship etc.. , i do not accept a long term stay.

- I also ask how they want the room to be serviced, almost everybody wants to change bedlinen themself (then i provide a basket with new bedlinen + towels on request) and also wants to keep the room clean themself.

- Sometimes people prefer to bring/use their own bedlinen and towels, then i give some discount.

Long term stay guests from abroad have often some special requirements:

They need to receive mail on their addres. International students from outside the EU needs registration (obligation from their educational institute and/or governement to provide a permit). I allow it, but have to give permission (obligation from council) to temporary register for the duration of the stay.

BTW The additional advantage for such a guest is no Tourist Tax need be charged.

Last but not least:

Extend or shorten a long term stay always as a host (on request from the guest ). The change form contains several bugs when changing long term stays , so then you can keep an eye on the calculated price and amend it if nessecary. Long term stays always have the "long term stay cancellation policy"  attached, overruling whatever cancellation policy is set by the host.

In some countries long term stay guests automatically generate "tenant rights" by law. Be aware of it !

[Jessica-and-Henry0]

Similar to @Emiel1  I preferred and used to host a lot of long term international exchange students (1 semester = 4~5 months) in my private room listing. Such guests had my approval to use/submit my home address as their local place of residence to the school and bank and in return, I would ask to see their passport to check their full legal name and jot down their passport # during the first few days after check in. In addition to their Airbnb booking confirmation print-out, they also needed me to sign a form for their visa interview (which is mandatory for stays that exceed 3 months) to confirm their local place of residence. 

I would not accept any local long-term guests thru Airbnb because in most cases, locals looking to book long-term stays thru Airbnb do so usually because they can't afford the deposit that is typically required for these types of monthly leases which are less than 6 months, which is usually a minimum of 1~2 month's rent. In Korea, any tenant contract that is 1 yr or longer usually requires a deposit of about 3~6 months worth of the monthly rent, usually more. 

[Jerry250]

In the UK a 'guest' legally becomes a 'tenant' after 28 days, and can even claim to have become a 'tenant' from day one. That puts the host into the role of landlord.

UK tenants have assured short hold tenancy rights. Right now in the UK because of covid landlords must give tenants 6 months notice to leave.

As 'landlord' the host  must check the tenant's  'immigration status'  complies with UK law (punishable by a prison term for the host if the tenant isn't eligible)  the landlord must lodge the tenant's deposit with a govt recognised 'deposit protection scheme'. There are various other legal requirements landlords must fulfil - they must provide a valid energy performance certificate for the property, carry out an electrical safety certification, as well as gas safety certification and all these documents will be required before any judge will evict a tenant. The host may also breach the terms of their holiday let mortgage finance (by accepting tenants not guests - because tenants have rights).

Additionally in the UK the host will end their tax status as a 'furnishied holiday let' and become a 'buy to let'. That means limited finance deductions for tax, and significant reductions in the costs that can be claimed against tax. Long term rentals don't make legal sense for UK hospitality hosts. There are plenty of horror stories about guests who refuse to leave because they've become tenants.  

Here's a UK horror story from last week - guest refuses to leave.

https://www.dailymail.co.uk/news/article-9181321/Interior-designer-46-says-lose-family-home-nightmar...

We have tenants at another property, it's a totally different proposition, with very different rules.

[Mike-And-Jane0]

@Jerry250 I don't believe the 28 days applies to home share hosts. By the way where did you find the 28 day limit for tenancies? I have never been able to find it.

[Jerry250]

@Mike-And-Jane0 if you home share it won't apply - here are the govt rules

https://www.gov.uk/private-renting-tenancy-agreements/tenancy-types

The 28 days comes from our holiday let mortage T&C. The govt says after 31 days the let is no longer a holiday let (see the link above which excludes 'holiday lets' from being eligible for tenancy rights). It follows that after 31 days the let is no longer a 'holiday let'.

https://www.gov.uk/government/publications/furnished-holiday-lettings-hs253-self-assessment-helpshee...

Tenancies cannot normally be formed if: the landord shares or the property is a holiday let (thee are other conditions, see link). Tenancies can be formed if it is the tenant's only residence. Airbnb doesn't provide residency status about guests, which is why hosts of 'exclusively for the use of' properties should be wary of long term rentals in the UK.

Housing law is open to legal challenge by both parties and can be protracted and very expensive. 

[Mike-And-Jane0]

@Jerry250 Thanks for your reply. I am not sure that you are right when you say 'it follows that after 31 days the let is no longer a 'holiday let'. The only thing the Furnished Holiday Let rules say are that you can't count lets over 31 days towards the 105 day occupancy requirement for a FHL.

I shall continue in my quest to find out when a let becomes a tenancy in the UK but will continue to limit lets to 28 days as this seems to be the point at which things become questionable.

[Dale711]

Salut @Stephanie,

Long-term guest needs " Great care " from the host.

These are some of the things I learned from my own experience in our private room and dormitory shared room listing.  🙂

Good Communication

- I do have to admit, that for a long-term guest, I became aware of many of the "small faults" in the place. Therefore, we gather together monthly with LT guests, for leisurely dinner talk about a trivial matter, stand around chit-chatting. To know about what they need more in the home and noticed it's.

- add in the new bedsheet, linen, extra pillow, towels. Having a desk, table lamp and comfortable chairs in the bedroom 

- fully stocked kitchen to assume LT guest life easier. By providing Tupperware, can opener, good strainer etc

- by supplying to their flavour scent of hand soap, shampooing, air freshener. The little things with making its different 

- while LT guest is spending more times in-home, we've to act proactively when something is not working and offend to call the handyman. Maintenance/repair/replacement as our full responsibility.

Flexible

-being flexibility for LT guest. We do not provide kitchen access for the shared room listing, but we do allow them to use the kitchen every weekend or when they really need it's. Ready and able to change so as to adapt to the different circumstances.

- we do allow private room and studio LT guest do invite a friend or family member for few nights stay. Perhaps to inform us in advance and assume the inviter observer our house rules.  

Take better care and being sharing issue with the LT guest to secured rental 🤗      

[Helen3]

I would never use Airbnb for long term rentals in a whole listing. @Stephanie 

The tenants in my long term rental have been credit checked, i take up previous landlord references, I take a deposit and they pay the council tax and all utilities. 

I also have a legally enforceable contract with them.

With Airbnb you need to cover all bills, you have no way of credit checking or referencing, there is no tenancy contract you can enforce, no deposit and the guest can leave at any time giving you only 30 days notice. 

I would be foolish to use Airbnb for long term rentals for whole listing. 

[Lorna170]

@Stephanie   I do not rent to long term stay guests on AirBnB.  There are too many obstacles and pitfalls in using an OTA for long term rentals. I would perhaps use an OTA for long term rentals if:

1) the OTA provided the means for a host to upload and have a guest sign a contract at booking;

2) the OTA provided the relevant guest information prior to booking, i.e., name and legal address;

3) the OTA was transparent about and guaranteed the guest payment method; 

4) the OTA actually charged and held (or sent to the host) the security or damage deposit.

[Mike-And-Jane0]

@Lorna170 A great list. I would also add a reasonable commission as the Airbnb fees are not really competitive with other tenant finding methods

[Melodie-And-John0]

@Stephanie , interesting topic!   I think the idea of more than 30 days is not one I'm really looking forward to.   When you move from Host to Landlord and Guest to Tennent,  the whole relationship changes, it gives me flashbacks from a rental place a friend and I bought 30 years ago super cheap that should have been awesome but turned out to be awful, I wont go into the details, it would just aggravate my Rental PTSD!!!!!   We have had a few guests that have stayed longer than a month but that is rare and I hope it to stay that way.   We like to see them come, enjoy gabbing with them and its great to see them go, getting to know them too well comes with challenges.   Thats the reason I love being a Inn Keeper, an ever changong world comes to us not visa versa.   Stay well, JR