Edinburgh short term rentals – is the bubble bursting?
As the days get longer and the snow continues to melt the Edinburgh lettings industry will jump back into action this week with the usual demands and preparations for summer rentals. From student lets to short term holiday lets and of course the Edinburgh festival rentals.
The emergence of AIRbnb type rentals have become very popular but I wonder if the bubble is beginning to burst in Edinburgh?
Is your short term Edinburgh rental as busy as it used to be? I am regularly hearing that bookings are slowing down and voids are creeping in due to the sheer number of available short term properties.
AIRbnb started as a platform to advertise your spare room to holiday makers and is now a global force to be reckoned with. However, Edinburgh is starting to see resistance from the powers that be and I think before long Edinburgh Council (EC) and HMRC will be cracking down on AIRbnb landlords.
Several European cities (Paris, Berlin and Barcelona to name a few) have already been dealt a blow by their governing bodies to reduce/restrict the time short term lets can run for while handing out heavy penalties when rules are broken. It is also common knowledge that EC are in the process of reviewing the market place to determine what it believes is best for the city.
There is a report almost every week in the local press about short term lets and their affect on the city and local residents. Many property owners run AIRbnb lets without any smoke detectors, gas checks or any thought for safety whats so ever! EC are on to this.
HMRC are very aware of the number of short term landlords in Edinburgh and lets be honest here folks; it’s easy to upload an advert and cash in on the thousands of holiday makers pounding the streets of Edinburgh consistently throughout the year. The government are after their pound of flesh.
I blogged previously about the introduction of the new PRT which brings its own changes to the Festival market in 2019. The Edinburgh rental market is going through major changes at present and you have to be adaptable if you are going to survive!
At ACE Property we specialise in long term management however we do manage numerous Festival lets during the August period for existing landlords. So I am not just a long term agent trashing the short term market!
I am merely getting it out there that AIRbnb can be great if you are near Edinburgh Castle, have cheap management and running costs and can handle whatever EC and HMRC are planning.
But if your business model is going to be compromised it is worth looking at other options or plan to adapt to any changes before it’s too late.
Written by Alan Nash – alan@acepm.co.uk
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