Landlords who own private rental properties are having to re-evaluate their finances as a result of increasing mortgage rates which is leaving many considering the option of switching their long term private rental setup, in favour of short-term holiday lets to be listed on holiday accommodation websites such as Airbnb. As mortgage rates have steadily increased in the UK, potential profit margins from long term private rentals have started to decrease meaning that many landlords are exploring new avenues to generate a better return on their property investment.
Changing the use of a flat or house from a private rental to a holiday let can be a very exciting time for landlords, however in some cases, a change in use to a property can leave landlords either underinsured, or perhaps even without any valid insurance at all. Therefore, it’s crucial that if you are a landlord who is considering switching to a short-term holiday let model, you should consider the insurance implications of this in the first instance to ensure you’re not left unprotected in the unlikely event a claim is made against you.