If you are interested in investing in property in Cambridge as a buy-to-let, you may be off a lot better by letting your property out as a furnished holiday let (FHL) than an assured shorthold tenancy (AST). To find out more, read this page on Tax Advantages of Short Term Lets FHL.
Did you know that if you let your property as an FHL, you qualify for Capital Gains Tax Relief? This means you qualify for Business Asset Rollover Relief, Entrepreneurs’ Relief, relief for gifts of business assets and relief for loans to traders. So if you decide to sell your property to tap into the rise in market value since you made your investment, you won’t be hit by a huge tax bill if you’ve been letting your property on a short-term basis.
Additionally, there are further tax advantages in terms of being entitled to plant and machinery capital allowances for items such as furniture, equipment and fixtures. You will also be pleased to hear that the profits count as earnings for pension purposes. To read more about the tax advantages that come with FHL, take a look at this Government Webpage - .
Now where does Peymans come into the scene? Well, if you decide to let your property as an FHL, a lot of work comes with it. You need to find the guests; liaise with them; ensure all their questions are answered prior to arrival. You need to sort out any double bookings that you may get due to inadequate property management systems; ensure the property is cleaned prior to their arrival. Don’t forget, you will need to wash, iron and dry all the laundry. On the payment side of things, you need to ensure a damage deposit is kept; set up a credit card processing system so you can accept card payments. And so the list of tasks continues...
You could of course go with one of our competitors who will rent the property from you and then sublet it as an FHL, and let them have all the profit. This will give you a guaranteed income for a multi-year contract, however, you lose all the above-mentioned tax advantages.
The landlord-centric business model under which we operate at Peymans, means that we are essentially just another real estate agency. However, instead of dealing with long-term tenants, we deal with short-term ones. By letting your property as a serviced apartment through Peymans, you will be able to make use of all the tax advantages to maximize your profit, and at the same time benefit of the higher rental incomes associated with serviced apartments.
The ASAP Quality Accreditation logo/seal/marque assures that this serviced apartment operator or agent has been successfully quality accredited by ISAAP on behalf of The Association of Serviced Apartment Providers (ASAP) and, as such, is confirmed as meeting all the Core and Compulsory Requirements of the Quality Programme, including compliance with legal, health & safety requirements and industry best practice, thus delivering confidence that all minimum pre-set standards of quality have been achieved as a minimum. Corporate and leisure customers can stay with confidence. Visit www.theasap.org.uk for full details of the ASAP QA and Accreditation Programme.
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