WHO? WHAT? WHEN? WHERE? HOW!?
London's 90 Day Rule. If you've just started in property or have even been around this industry for a while, no doubt you would have heard and come across something called the ‘Ninty Day Rule'. This little phrase would pop up most frequently when talking about serviced accomodation, specifically in London. To put it simply the '90 day rule' is a rule when renting out rooms and apartments in London. It is designed to limit the ammount of days you can rent out a room per year! “ONLY NINTY DAYS!” I hear you exclaim. Don't worry. Your financial freedom dreams arn't over. In this video Samuel shares his top three tips to benifit the most from the rule and to turn it to your advantage.
London's 90 Day Rule: – What You can do legally.
1: Change the use: If your primary strategy is serviced accomodation and you are adamant in renting out a flat in London for longer than ninty days, this is what to do. Samuel reccomends you go to the local council, and change the use / purpose of the property. Each building has it's own classification and purpose, whether it's a hotel or a guest house, from a farm to you guessed it… serviced accomodation. The usual calssification for most london properties is a C3. Change your property from a C3 to a C1. However it is not reccomended you do this if you only control the property and not own. It'll cost money and time to do this, but if you're looking to make that london prices profit. This is a slow, yet legal solution.
2: Actually, Just rent it out for 90 days: There's no harm in playing by the rules! By renting what you have out for exactly ninty days, but within the peak periods of the year you'll see the ROI roll in. Many are doing this. In fact 7% of all properties in London are rented out on Airbnb and Booking.com at some point every year. And now you can get in on that! Never underestimate the ammount of rent you can collect renting out in central london during a peak time in the year.
And Finally…
3: Don't get hung up about the one area: One of the best ways around the London ninty day rule is to simply NOT rent in london! If you can't move because of your ownership within London it's best to stick to tip number one or two. However if you're thinking of investing, even as a beginner, and you're worried about this london rule. Consider investing outside of London. Try St Albans or Watford, perhaps further North. Sometimes the best way to get around things like this in the property world is to keep an open mind. Focus on looking beyond your current situation. If something works somewhere else and not where you are, find a way to make it happen. Don't limit yourself to what's around you.
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