The ins and outs

For landlords it is both a measure of reducing void periods and netting higher overall returns, even with the set-up costs involved. “This could include service charges, utilities, annual maintenance fees, DTCM and building management fees, insurance, supplies, operator fees (20 per cent of rental), furnishing and marketing costs,” said Manika Dhama at Cavendish Maxwell. “While the calculation of net returns varies for each building and apartment type, the comparison is between all the above costs against the chargeable hotel rate per night, assuming around 60-65 per cent occupancy in the current market. “In popular locations and buildings where this expected net income is higher than the annual rent for a regular apartment, landlords can choose the short-term rental option.”