As the popularity of holiday lets continues to rise, it’s important for both landlords and tenants to be aware of the legal agreements that govern these arrangements. Two common types of agreements are the holiday let agreement and the assured shorthold tenancy (AST) agreement. Both agreements have their own unique features and are designed to cater to specific types of short-term rentals. In this article, we’ll take a closer look at the differences between the two agreements and which one is best suited for your holiday rental needs.
Holiday Let Agreement
A holiday let agreement is a legal agreement between a landlord and tenant that allows for the short-term renting of a property for a holiday or vacation stay. This type of agreement is commonly used for holiday rentals, such as villas, apartments, and cottages. The rental period is usually less than three months, and the agreement can be renewed multiple times.
Holiday let agreements are much more flexible than AST agreements and allow landlords to use their property for their own personal use whenever they want. This means that holiday let agreements give landlords the freedom to use their property for personal holidays or for short-term rentals when the property is vacant.
AST Agreement
An AST agreement is a legal agreement between a landlord and tenant that allows for the short-term renting of a property on a fixed term basis. This type of agreement is commonly used for long-term rentals, such as flats and houses. The rental period is usually six to twelve months, and the agreement is automatically renewed unless the landlord or tenant decides to terminate it.
AST agreements are more rigid than holiday let agreements and do not allow landlords to use their property for their own personal use during the tenancy period. This means that landlords must ensure that their property is vacant during the rental period and cannot use it for personal holidays or short-term rentals.
Which One is Best for Your Holiday Rental Needs?
If you’re a landlord looking to rent out your property for short-term holiday lets, then a holiday let agreement is the best choice for you. The flexibility and freedom that this type of agreement provides will allow you to use your property as you see fit while still generating income from your rental property.
On the other hand, if you’re a tenant looking for a long-term rental, then an AST agreement is the best choice for you. The fixed term of the agreement provides you with security and stability, and you can use the property as your own during the rental period.
In conclusion, it’s important to understand the differences between holiday let agreements and AST agreements when renting out your property for short-term stays. Both agreements have their own unique features and are designed to cater to specific types of rentals. By choosing the right agreement, you can ensure that your holiday rental experience is comfortable and hassle-free for both parties involved.