If you’re renting property as a holiday let, it’s essential to have the right kind of agreement in place.
Holiday lets are a popular investment, but many landlords are unsure what agreement to use, and are worried about getting it wrong (allowing the tenant to rent much longer than expected!).
If you’d like an easily adjustable, legally binding agreement, then you can use this handy Holiday Let Tenancy Agreement Template, which can be printed out in Word/PDF format. This allows you and your property to be fully protected under the law.
If you’d like to find out more about what these agreements are and how to use them, then keep on reading our guide below.
Why are Holiday Letting Agreement templates important?
The most major reason is because holiday lettings have become a significant sub-section of the lettings market. As such, it’s important to create a reliable, legally binding document which governs these tenancies.
The number of landlords in the UK who let their properties as holiday lets has increased significantly in recent years, largely driven by the rise of platforms like Airbnb and the demand for short-term rentals.
Data from the English Housing Survey noted during their major, 2022 study that there were over 800,000 second homes in the UK, with 45% being considered a holiday home. While this figure is likely to be lower now since rules have tightened, there are still a substantial number of properties used for this purpose.
This number includes properties specifically let out for short-term stays, such as holiday homes, cottages, and city apartments. The number of landlords involved can be slightly less, as some may own multiple properties.
Locations like Cornwall, the Lake District, and certain urban centres like London and Edinburgh are hotspots for holiday homes. The trend reflects a shift by some landlords from traditional long-term rentals to the potentially more lucrative short-term holiday letting market.
We know of many householders in the Wimbledon area, for example, who leave their homes to players, officials and tennis fans for three weeks each summer when the Grand Slam tournament is taking place in SW19.
Who uses holiday lets in the UK?
Holiday lets in the UK attract a diverse range of users. Here’s an overview of who typically uses them:
- Domestic Tourists:
- Families: Holiday lets are popular with families who prefer the flexibility and space that a rental home offers compared to a hotel. They often seek properties in coastal regions, countryside areas, and popular tourist destinations.
- Couples: Couples, particularly those on romantic getaways or short breaks, frequently use holiday lets for the privacy and unique experiences they offer.
- Groups of Friends: Groups often book holiday lets for events, celebrations, or simply for a group vacation. Properties that accommodate larger numbers are particularly popular in scenic or culturally significant areas.
- International Tourists:
- Tourists from abroad, particularly from Europe, North America, and increasingly Asia, use holiday lets as a base for exploring the UK. They are attracted to the variety of options, from quaint countryside cottages to city-centre apartments.
- Business Travelers:
- Some business travellers, especially those on extended stays, prefer holiday lets for the comfort and home-like environment. This trend has been noticeable in cities where business travel is common.
- Staycationers:
- The staycation trend, where people take holidays within their own country, has boosted the popularity of holiday lets. This became particularly pronounced during the COVID-19 pandemic when international travel was restricted.
- Event Attendees:
- Visitors attending specific events, such as festivals, weddings, or sporting events, often choose holiday lets for their accommodation, especially in areas where hotels may be fully booked or more expensive during peak times.
- Digital Nomads and Remote Workers:
- With the rise of remote working, some individuals or couples use holiday lets as temporary residences while they work from different locations across the UK. These users often seek out properties with good Wi-Fi and comfortable workspaces.
- Pet Owners:
- Many holiday lets are pet-friendly, attracting pet owners who prefer to bring their pets along on holiday. This option is especially popular in rural or coastal areas where pets can enjoy outdoor activities.
Holiday lets are popular across a broad spectrum of users due to the flexibility, privacy, and often unique experiences they offer compared to traditional hotel accommodations.
Do I need to sign a Holiday Let Agreement?
Private landlords who jump on the home-from-home bandwagon need to be aware that they must get their short-term guests to sign a Holiday Letting Agreement. A Holiday Letting Agreement Forms part of a landlord’s raft of necessary paperwork. This is why Property Division is pleased to offer you a free agreement. Simply print off two copies, sign one and hand it to your tenants, then get your tenant or tenants to sign the other and hand that agreement to you.
However, ASTs do not cover agreements where tenants pay more than £100,000 in rent per year or when a limited company rents a residential property.
The latter often involves companies renting residential accommodation and letting the property to their employees, usually under a licence agreement (as opposed to a tenancy).
If you like a custom, completely personalised Holiday Let Agreement, use the link below. It takes about 5 min to create, and you will end up with an agreement tailored to your specific property.
Download CUSTOM Holiday Let Agreement Form
Alternatively, if you just want to download a generic holiday let tenancy agreement template, use the link below.
Download GENERIC Holiday Let Agreement Form
While the employee will usually pay rent and other costs to the landlord, ultimately the company is liable.
What should a Holiday Let Rental Agreement typically include?
- Names of the landlord and tenant
- Property address and description
- Rent amount and payment details
- Duration of the tenancy
- Purpose of the tenancy (e.g. holiday letting)
- Inventory of items provided with the property
- Maintenance and cleaning responsibilities
- Restrictions on the use of the property (e.g. no pets allowed)
- Cancellation and termination conditions
- Insurance requirements
- Security deposit arrangements
- Liabilities of the landlord and tenant
- Complaints and dispute resolution procedure
- Jurisdiction and governing law
Download this free holiday let agreement template, by clicking on the banner above.
The benefits of a UK Holiday Let Agreement
A properly structured Holiday Let Agreement offers significant legal protection for property owners in the UK. This formal contract clearly establishes the short-term nature of the occupancy for holiday purposes, which is crucial because it prevents guests from acquiring rights under the Housing Act 1988, ensuring the owner maintains control over their property and can regain possession without formal eviction procedures when the agreement ends.
Beyond legal safeguards, they provide financial protection by establishing clear payment terms, cancellation policies, and security deposit requirements. They outline responsibilities for both parties regarding property maintenance, permitted activities, and house rules – helping prevent potential disputes and property damage. The document also typically includes specific liability clauses and insurance requirements that protect owners from various financial risks associated with short-term letting.
Holiday Let Agreements & legal compliance
Short term Holiday Letting Agreement templates must comply with various legal requirements to ensure the protection of both property owners and guests. Unlike standard tenancies, holiday lets do not fall under the Assured Shorthold Tenancy (AST) framework, meaning guests do not have long-term tenant rights. Instead, they are governed by contract law, with the agreement clearly stating the short-term nature of the stay. Owners must also consider local authority regulations, as some councils impose restrictions on short-term lets, particularly in high-demand areas like London, where there is a 90-night annual limit on short-term rentals.
Tax implications are another important factor. Properties classified as Furnished Holiday Lets (FHLs) benefit from tax advantages, including allowances on mortgage interest and capital gains tax relief. To qualify, the property must be available for letting at least 210 days per year and actually let for a minimum of 105 days. Compliance with health and safety regulations is essential, including annual gas safety checks, electrical safety inspections, and fire safety measures such as smoke alarms and fire extinguishers. Owners must also provide a risk assessment and ensure the property meets minimum standards set out in the Housing Health and Safety Rating System (HHSRS). By adhering to these legal and safety requirements, property owners can operate a compliant, safe, and profitable holiday let.
Note: The specifics of a Holiday Let Rental Agreement (or a holiday let contract) may vary depending on the jurisdiction and local laws. It’s important to have a clear understanding of all the terms and conditions before signing the agreement.
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