Take a bet on a short-term let

Trying to sell but no takers and still having to move out? Then why not let the house short term until the property market picks up again, most probably next spring?

Letting for the short term is a niche market in itself. The safest and most popular route is via the tried-and-trusted corporate let. "Hopefully by using a corporate client you avoid the risk of a sitting tenant," explains Arnaud Cheung, director of short lets at Foxtons Lettings Agency (020 7590 1016). "If a company is paying for the tenancy, the rent is often paid up front."

Cheung's clients range from well-known banks to the entertainment industry. "We've had an influx of media people coming from the States," he says. "I've dealt with a number of media gurus and dotcom companies working here."

The average short-term tenancy is for two to three months going up to six months. Because of the convenience factor, rents are slightly higher for short-term lets, but so are expectations. "A flat has to be ready and immaculately furnished," says Cheung. "It needs to be a home-from-home alternative to a hotel so someone could walk in with a suitcase and live."

The home-from-home alternative to hotels started in the States. Foxtons concentrates on central and fashionable London, Hyde Park to Wapping, Notting Hill to Islington, where demand is greatest. Foxton's tenancy agreements vary. As it specialises in company lets it uses contractual (as opposed to assured shorthold tenancy) agreements which enable a landlord to regain possession, if necessary, sooner than the minimum statutory period of six months.

But what if you are not in this glossy league of up-market rentals but simply need a short-term let for your fab but functional flat? If you cannot go down the safe route of the corporate let, the risks do increase. "I would be very careful," warns Simon Agace, chairman of Winkworth's Estate and Letting Agents (01962 850556). "If you are trying to sell a flat and the tenant won't go, you have a problem." One way of selecting a reliable tenant would be to ask why they want a short let. Often people with insurance claims, whose homes are being repaired, will need a temporary base. Anyone looking to rent while buying, is also a good bet. "Try to get someone who is under contract with a major company, with some sort of responsibility," advises Agace. "Keep to the business community and avoid film-star types who won't want a potential purchaser being shown around the property while they are renting."

Agace recommends a minimum six-month assured shorthold tenancy agreement with, if required, a break clause, although this isn't foolproof. "A tenant could ignore it (the break clause). Under six months, it is not legally enforceable," he adds.

Nevertheless, despite the risks, short-term lets are attractive. "Autumn is traditionally the poorer end of the property market. Prices always dip at this time of year," Agace explains. "Most people would put a tenant in for six months and try selling again in the spring."