Accidental Landlord? What to Know Before You Let Short-Term

We’ve all done it – slipped and somehow landed in a buy-to-let we’re now responsible for, except no we absolutely haven’t, so what exactly do we mean by an ‘accidental landlord’, and how does one find themselves in this position?

It’s actually more common than you might think to become a landlord without ever planning to. What makes it ‘accidental’ is when it happens through unforeseen circumstances rather than as part of a pre-planned investment strategy. Inheriting a house, relocating suddenly, merging households, or facing slow selling timelines are just a few of the situations that can lead to this complex – albeit rather fortunate – predicament.

This rise in platforms such as Airbnb and Booking.com portrays short-term letting agreements as easy, accessible, and casual, but in today’s rapidly changing legislative landscape, it can be far from that. It’s essential, therefore, to understand the rules and ensure proper compliance before jumping into a quick fix, and professional advice like that of Glaisyers ETL could make this much easier. This guide explains the rules and strategic steps to make letting lawful and low-stress.

Understanding Short- and Medium-Term Lets

Short-term lets are usually defined as those lasting up to six months and tend to be the ones you’d book on an app – think weekends away, work trips, and other casual agreements. Medium-term lets, ranging from six months to one year, are ideal for individuals needing temporary housing for a specific period. For anything longer than a year, the arrangement usually falls under a long-term let, often covered by an Assured Shorthold Tenancy (AST).

Existing to protect both the tenant and the landlord, an AST outlines the terms for someone to live in a property. Common elements of the AST include; the start and end date of the fixed-term agreement, the amount of rent to pay and how regularly it must be paid, the address of the rented property, when and how the rent is reviewed, the bills which the tenant is responsible for, the deposit amount and occasions in which it can be withheld, and the names and addresses of all parties. Landlords might also wish to include details of break clauses, property rules (e.g. No parties, unless you invite me), and their own legal responsibilities.

Regional Rules and Restrictions

While this is the way things typically go in England, rules vary depending on location. Scotland operates under a different system using Private Residential Tenancies (PRTs), while London has additional restrictions on short-term letting.

London’s 90-day Limit

If you’re letting a whole home, you’re usually limited to 90 nights a year unless you get planning permission to do more. That 90-night cap is there to stop houses disappearing from the long-term rental market, and it applies regardless of which platform you list on. If you want to let for longer, you’ll need to check local planning rules and apply for the right permission.

Scotland’s Mandatory Licensing for Short-Term Lets

Scotland have introduced a national licensing regime for short-term lets. If you host there, you’ll need to prove the property meets health and safety standards and pass a fit-and-proper-person test for the licence holder or operator.

England and Wales

England and, to a lesser degree, Wales, may be following Scotland’s suit in moving towards a national registration system for short-term lets. Alongside planning changes, this would create a new use class specifically for short-term letting. Hosts may soon have to register their properties, and there will be clearer rules about when a property’s use counts as a short-term let rather than a home.

Know Your Due Diligence 

 In welcoming someone into a property you own, you accept responsibility for a guest’s safety, and there are clear guidelines you must follow in order to carry out your due diligence.  

• • Gas safety: Annual gas safety checks are required under the Gas Safety Regulations 1998. That means every gas appliance needs a professional inspection every year, and you must keep records for at least two years. 

• • Electrical safety: Electrical safety tests and portable appliance tests are important factors to consider. 

• • Alarms: Landlords are responsible for installing smoke alarms and carbon monoxide detectors, as well as checking they work at the start of each tenancy.  

• • Fire and water risks: Many short-term lets are treated as non-domestic premises, which means fire risk assessments are required, along with adherence to furniture fire safety rules. Don’t forget about legionella either – a legionella risk assessment helps manage water-borne bacteria in taps, showers, and hot water systems. This is especially important if your property has been dormant for a while. 

• • Insurance: Standard home insurance might not cover short-term letting, so make sure you have a policy designed for holiday lets or commercial use. 

• • EPC: Most properties will also need an Energy Performance Certificate (EPC). 

• • Deposit Scheme: You don’t have to take a deposit, but if you do, you must legally comply with the relevant tenancy deposit legislation. 

Keeping Thorough Records 

From 6 April 2025, income and gains from former Furnished Holiday Let (FHL) Properties will be treated as ordinary property businesses. The abolition of this regime has knock-on effects for things like capital allowances, mortgage interest relief, and capital gains tax, so it’s worth understanding how it impacts your finances and preparing for these changes. 

As a landlord, you should keep detailed records of rent payments, correspondence with tenants, safety certificates, repairs, expenses and insurance documents.  

With this in mind, if there is a need to evidence anything (whether property or accountancy related), having clear records will make it much easier to defend your actions. 

Where Glaisyers ETL Can Help 

Navigating the legal side of being a landlord can feel overwhelming, especially when it wasn’t part of your original plan. If you’ve accidentally stumbled into the world of letting and aren’t quite sure what rules apply to you, don’t panic; you’re far from the only one.  

Glaisyers ETL can assist you in providing an overview of potential risk factors when considering your landlord obligations, either from a commercial and/or residential viewpoint.