What are the best alternatives to buy to let?

Why look for an alternative at all?

For a lot of landlords, buy to let has become more admin and less control. The Renters' Rights Act means rolling tenancies and no Section 21, on top of years of tax and regulation changes. Here's how the main options compare, as fairly as I can put it, even though we obviously run one of them.

Selling

The cleanest exit. You get your capital back and no more landlord headaches. The downsides are selling costs, possible capital gains tax, and losing an asset that might keep growing. It's the right answer if you're done with property, or a particular house just doesn't add up. Take tax advice first. Our guide on whether to sell your buy to let goes deeper.

A long let with an agent

Fully managed letting takes the day to day off your plate and gives a steady monthly rent. It's still a tenancy, though, so all the new rules apply and getting the property back is slow. If you've got a great tenant, this is still a perfectly sensible option, and I wouldn't rush to change it.

A mid term let

Mid term lets usually mean stays of one to several months, often to workers or people between homes. They can sit between long and short lets on income and effort. Be careful with the paperwork, because depending on how it's set up, a longer stay where someone treats the property as their home could be treated as a tenancy. Get specialist advice on the agreement.

A short let you manage yourself

The most money on paper, because you keep everything except costs. But it's a lot of work. Guest messages at all hours, cleans between every stay, pricing that changes nightly, and maintenance at short notice. It's like taking on a second job you can't switch off. It suits people who live nearby, enjoy hospitality and have the time.

A short let managed by a company

This is what we do at Renzo. We handle all guest calls, messages, bookings, cleaning, maintenance and pricing, and you get a monthly payment and statement. Our fee is 14% plus VAT. Landlords typically earn 30% to 40% more than a buy to let, without extra work, and there's no tenancy, so you can block dates for yourself and get the property back empty if you leave.

The trade off is that income varies by season. We average 80% occupancy across more than 50 properties, but some months are quieter. If you're new to this, start with what short let management is.

So which is best?

If you want out, sell. If you've got a great tenant and want a fixed income, stay with a long let. If you want more income and control and don't want a second job, a managed short let is usually the best fit. You don't have to pick one route for every property, either. Our Airbnb vs buy to let comparison puts the two most common options side by side.