Switch of Edinburgh block of 85 flats to long-term rental could signal end for short-term lets in Capital

A major short-term let operator in the Capital has announced a switch to longer-term rentals in a move which could signal the end for Airbnb-style accommodation in the city as a result of Covid.

Fountain Court in Grove Street has 85 fully-furnished flats

Fountain Court Apartments consists of 85 fully-furnished flats in a range of sizes in Grove Street at the West End.

A first tranche of the flats has already been handed over to letting agents DJ Alexander for rental to long-term tenants and the rest are due to follow by the end of next month.

Fountain Court director John Neil said, “We have operated in Edinburgh for 22 years. In that time there have been many changes in the city but none have affected our business as quickly and dramatically as Covid-19, with an overnight shift to working from home coupled with travel restrictions.

The flats are now to be offered for long-term rental

“Our board has therefore taken the strategic decision to change our business model and we are confident that our well-located, fully furnished apartments will be attractive to a range of prospective tenants.

Fountain Court will continue to honour existing bookings for dates up to and including December 17.

David Alexander, joint managing director of DJ Alexander, said

Since lockdown happened the Airbnb market fell of a cliff and we have had quite a number of landlords with either with single properties or multiple properties deciding they will put them on the long-term rental market. It’s trend that’s continuing every month, more and more people moving them across.

"We are in discussion with a few larger operators that are in the same scenario.”

He said Fountain Court had been recognised as short-term-let flats. "The idea is it will become more of a community with long-term tenants in there and it’s a nice place for people to live.”

And he saw no reason for the trend away from short-term lets to stop. “If we get a vaccine and things get back to something like normal people will travel and people will come to Edinburgh, but it doesn’t look like international travel is going to happen any time soon. It’s a long time to hang on and wait – people have commitments and you can’t sit and get nothing. There are also going to be more restrictions on Airbnb, so they might well decided they’re better getting a long-term tenant.”

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