Latest news with #JayAllen
Telegraph
6 days ago
- Business
- Telegraph
‘I can earn £200k more a year': why landlords are switching to short-term lets, and how to join them
When Jay Allen secured the winning bid on Otherton Hall at auction, he had no idea how he was going to turn the 8,500 sq ft derelict farmhouse into a profitable business. Set on green belt land in the Staffordshire countryside town of Penkridge, the Grade II-listed property surrounded by protected wildlife species cost Jay £355,000. 'When I bought it, I didn't have a clue of what we were going to do with it,' says Allen, 42. 'I liked it, and I thought that some idea would develop.' Luckily for Allen, one did. He has since turned Otherton Hall into a luxury countryside retreat that can be let as a whole to holiday makers for block bookings. Short-term lets have the potential to generate much higher earnings than single buy-to-lets, says Allen, although planning permission was required to convert the property into eight suites, with a new-build extension on the side to house a swimming pool. This took a year to be granted, given the extra hoops to jump through with the presence of species such as the great crested newts and European long eared bats on the grounds. It took a further year for the conversion to complete. As the owner of a construction company and other investment properties, Allen had the resources and know-how to transform the building into a high-end holiday home – with a basement bar and games room that caters for up 16 people in a single stay. 'Rents are a lot higher on short-term lets compared to an AST [assured shorthold tenancy],' says Allen, who lives with his wife Anoushka, 41, and their two children in nearby Cannock. 'For the Christmas week we can get around £12,000. Although it sounds like a lot, when it's split between 16 guests per night it's not as bad as it sounds.' Over 12 months, Allen earns around £250,000 to £280,000 in gross income from the property, and spends around £120,000 a year to cover finance and running costs. If he had split the building into four apartments to rent out instead, he estimates he would collect a maximum of £60,000 a year. How to turn your property into a holiday let If you're considering converting a property into short-stay accommodation, rather than a traditional buy-to-let, you'll need to weigh up the pros and cons. This Telegraph Money guide will cover: Steps to consider 1. Research the market First, you'll need to think about location. Where you start searching could be dictated by the type of occupants you want to attract, and the letting model you plan to adopt. A traditional holiday let is rented out for one to two weeks to holiday makers in rural or coastal settings. Demand for these properties is high, says Jorden Abbs, chief executive of Commercial Trust: 'Since the pandemic, the number of people holidaying in the UK grew significantly and even after travel restrictions eased, the public had been exposed to how great it is to holiday across the UK and the holiday let sector has remained in strong demand.' Alternatively, you might consider providing serviced accommodation, which is often let for just a couple of nights to companies for their employees, and tends to be city-based. 2. Weigh up the finances If you own a buy-to-let property that you are considering converting to short-stay accommodation, do the sums to make sure it's a worthwhile venture. While holiday lets typically generate more income than a buy-to-let, it isn't guaranteed. Plus, you must factor in higher conversion and running costs, which will eat into your profits. Andrew Soye, director and founder of Holiday Cottage Mortgages, said: 'Yes, it's true you can earn a much greater income from a holiday let, but it must be the right property, with the right features in the right location. 'Investors use a rule of thumb that says if you can purchase a property where the rent divided the purchase price is around 10pc, then your holiday let stands a good chance of being a success.' 3. Factor in mortgage costs If you need to borrow money to buy the property, the type of short-stay accommodation you plan to run will impact the availability and cost of your mortgage. Holiday let lending has grown over time, says Mr Abbs, but some lenders will not accept serviced accommodation where the property is offered for a number of days, rather than week-long bookings common with traditional holiday lets. Getting the mortgage can be a complex process, so it can be a good idea to ask a mortgage adviser to help you. 4. Check out planning permission The introduction of a new use class for holiday lets in England has been discussed, but no action has yet been taken. If it were introduced, this would mean that planning permission would be needed even if no structural changes had been made. London, however, has its own rules. If you plan on letting out a residential property on a short-let basis for more than 90 days you will need to apply for planning permission first. In Wales, local authorities have the power to insist planning permission is sought using the same powers councils have to restrict the conversion of homes into a House of Multiple Occupation (HMO). Gwynedd council is the only local authority to take this step so far. In addition, owners of leasehold flats in England or Wales must always check if the freeholder has any restrictions in place that stop you letting the property as a holiday or short-term let. Anyone making structural alterations to a property should seek advice on planning permission before going ahead. Advantages of short-term lets You can increase your earning potential The main advantage of short-term lets is the increased earning potential, when compared to traditional buy-to-lets. It's the reason why property investor Ben Smith* decided to pay thousands to convert his latest investment to short-stay apartments. With the potential to earn 300pc more a month from two serviced apartments let to business travellers and holidaymakers, compared to renting out the property as a three-bedroom home, for him the short stay route was the obvious choice. Living in Brighton with his soon-to-be-wife and their three children, Smith employed sourcing agents to scour cities and towns such as Birmingham, Leeds, Stoke and Crewe to find off-market investment opportunities with good earning potential. When presented with a three-bed house in poor condition available below market value in Crewe, Cheshire, Smith 'ran the numbers'. Their decision to buy in Crewe – which is not a typical holiday destination – was strategic. Having a property here allows Smith to cash in on not just weekend stays, but business travellers throughout the week. He calculated that the conversion costs to transform the rundown house into high spec apartments would be around £80,000, double that of a straightforward refurbishment to let the property as a home. The income the apartments could generate made it a risk he and his wife were prepared to take – but they'll still need to wait a few years until these costs are covered. Smith said: 'Because of the amount of money we've put in to converting them into flats, if we sell them both now we wouldn't have made a penny on the refurbishment. 'But what it's allowed us to achieve in monthly gains over and above what we would have done as a residential house, over the course of a few years it will more than pay us back – and that's where the benefit is.' Renters rights do not apply Unlike with buy-to-let properties, occupiers of holiday lets or serviced accommodation do not have a right to reside there. Mr Soye said: 'With holiday lets, the legal basis of occupation is called a 'licence to occupy', which means guests effectively have no rights. If they refuse to leave, you can call the police.' With more stringent regulations in the form of the Renters Rights Bill on the way, which will make it harder for landlords to evict tenants, this could be a welcome benefit for some investors. However, it doesn't mean holiday lets are rule-free. Depending on where your holiday let is based, you may be subject to a licensing scheme to make sure you abide by certain standards. This is already set up in Scotland, while Wales is moving towards the same goal. The development of a digital short-term let registration scheme in England is underway, and testing is planned to start in the next 12 months. You can enjoy your investment Many investors choose this route as the owners of holiday lets can stay in their own accommodation whenever it's not being let out. Of course, the more time you spend there the less money you'll earn from your property. Drawbacks of short-term lets Higher conversion and running costs While there is potential to make more money from renting out a holiday let, the conversion to get the property ready could be pricey – and the upkeep can be more expensive than what you'd expect to pay for a buy-to-let. Allen spent £1.65m on the conversion of Otherton Hall and spends around £10,000 for expenses like the mortgage, cleaning and ongoing maintenance. 'Everything needs to be immaculate if you want great reviews,' he says. 'It's not a set and forget kind of business that keeps bringing you in money every month, it's more hands on than that.' He added: 'Just to do the laundry after each changeover costs £400.' While an eight-bedroom farmhouse is an extreme example of how high running costs can be, all holiday let owners are responsible for utility bills and council tax, where applicable, or business rates – costs that landlords do not need to shoulder. And housekeeping is entirely the responsibility of the owner, a cost borne by the tenant when there is a traditional tenancy in place. Success hangs on location It's important to bear in mind that not every property that is converted from an owner-occupied home or buy-to-let into short-stay accommodation will be a success. It will likely hinge on whether there is demand for your property from holiday makers, or business travellers who need to be close to transport links and major cities. This is why the market research step is so important. No longer preferential tax treatment Until April 5, owners of furnished holiday lets who bought the property in their personal name could deduct their mortgage interest from their rental income before calculating their tax liability. This right has now been removed and replaced with a 20pc tax credit, putting them on an equal footing with other buy-to-let landlords. However, owners who buy properties within a limited company do still have this right. If you decide to move your properties from your personal name into a limited company, you must pay stamp duty as you are effectively selling the property to your limited company – so take tax advice first. This was just one of the changes made when the furnished holiday lettings tax regime was abolished this April. Others include the removal of beneficial capital allowances. *Names have been changed
Yahoo
10-05-2025
- General
- Yahoo
Wayfinder's Derby Day Benefits Foster Care and Adoption Programs
SACRAMENTO, Calif. , May 10, 2025 /PRNewswire/ -- Wayfinder Family Services hosted its annual fundraising event, Derby Day, at Mulvaney's B&L restaurant in Sacramento on Saturday, May 3rd. All proceeds from the event benefit Wayfinder's foster care and adoption programs in Northern California. Over 150 guests enjoyed a live auction, hat contest, Southern-inspired food and live feed of the Kentucky Derby race. Wayfinder's Community Council, a group of local volunteers who raise awareness and funds for Wayfinder's mission, hosted the event. Jay Allen, Wayfinder's president and CEO said, "while Wayfinder's main campus is in Los Angeles, we have equally deep roots in this area. I want to thank Wayfinder's board, Community Council, today's sponsors and donors, as well as Wayfinder's phenomenal staff. They are the definition of 'above and beyond' and are who makes Wayfinder the best in class at what we do." Annie Hallsten Narayan, member of Wayfinder's Community Council, emceed the event and kicked it off with John Nicolaus, co-chair of Wayfinder's Community Council and a member of its board of directors. Jade Pillsbury, Wayfinder Community Council member and adoptive mother, gave the audience a firsthand account of Wayfinder's services. "The work that they do here—the trainings, the courses, the support groups, the support offered, the mentorship, the friendship that comes from this—is beyond my expectation, and I am very grateful." Since 1980, nearly 18,000 children have found stability and permanency in loving homes through Wayfinder's adoption programs and last year it served over 10,000 foster, adoptive and kinship families. The organization serves a total of over 22,000 individuals statewide each year through child welfare and disabilities programs. About Wayfinder Family Services Wayfinder Family Services provides expert, individualized support and services to children, youth, adults and families—from people with vision loss and developmental disabilities to children in need of temporary shelter, foster care and adoption. View original content to download multimedia: SOURCE Wayfinder Family Services
Yahoo
10-05-2025
- General
- Yahoo
Wayfinder's Derby Day Benefits Foster Care and Adoption Programs
SACRAMENTO, Calif. , May 10, 2025 /PRNewswire/ -- Wayfinder Family Services hosted its annual fundraising event, Derby Day, at Mulvaney's B&L restaurant in Sacramento on Saturday, May 3rd. All proceeds from the event benefit Wayfinder's foster care and adoption programs in Northern California. Over 150 guests enjoyed a live auction, hat contest, Southern-inspired food and live feed of the Kentucky Derby race. Wayfinder's Community Council, a group of local volunteers who raise awareness and funds for Wayfinder's mission, hosted the event. Jay Allen, Wayfinder's president and CEO said, "while Wayfinder's main campus is in Los Angeles, we have equally deep roots in this area. I want to thank Wayfinder's board, Community Council, today's sponsors and donors, as well as Wayfinder's phenomenal staff. They are the definition of 'above and beyond' and are who makes Wayfinder the best in class at what we do." Annie Hallsten Narayan, member of Wayfinder's Community Council, emceed the event and kicked it off with John Nicolaus, co-chair of Wayfinder's Community Council and a member of its board of directors. Jade Pillsbury, Wayfinder Community Council member and adoptive mother, gave the audience a firsthand account of Wayfinder's services. "The work that they do here—the trainings, the courses, the support groups, the support offered, the mentorship, the friendship that comes from this—is beyond my expectation, and I am very grateful." Since 1980, nearly 18,000 children have found stability and permanency in loving homes through Wayfinder's adoption programs and last year it served over 10,000 foster, adoptive and kinship families. The organization serves a total of over 22,000 individuals statewide each year through child welfare and disabilities programs. About Wayfinder Family Services Wayfinder Family Services provides expert, individualized support and services to children, youth, adults and families—from people with vision loss and developmental disabilities to children in need of temporary shelter, foster care and adoption. View original content to download multimedia: SOURCE Wayfinder Family Services
