Contractors Accommodation › Letting a property to contractors: what hosts need to know
Letting a property to contractors: what hosts need to know
Working guests can be steady, long-stay customers. Before you take them, make sure the property meets the rules on fire safety, licensing and tax, and that it has what crews actually need.
This is general information for England, not legal advice. Rules differ in Wales, Scotland and Northern Ireland, and your local council has the final word on licensing.
Fire safety is a legal duty
The Home Office guide Making your small paying guest accommodation safe from fire explains how the Regulatory Reform (Fire Safety) Order 2005 applies to small premises in England. It covers places where guests pay to stay and the premises are not being occupied as a private dwelling, even for one night. It is aimed at small premises: up to 10 people sleeping, no more than four bedrooms on the first floor, and individual flats.
The guide says the duties fall on the "Responsible Person", which is likely to be the owner, a letting agent or whoever else controls the premises. Key points from it:
- You must carry out a suitable and sufficient fire risk assessment, record it and review it regularly, at least once a year.
- Escape routes must be kept clear and lead as directly as possible to a place of safety.
- Solid, well-fitting conventional doors are often acceptable on escape routes, but hollow-core doors usually need replacing with fire-resisting doors.
- Smoke detection and alarms should be suitable for the premises and tested regularly.
The guide also says the law does not set out one fixed list of measures, because the right measures depend on your risk assessment. Read the full guide before taking guests.
Gas and electrical safety
If the property has gas appliances, have them checked every year by a Gas Safe registered engineer and keep the record. Have the electrical installation inspected by a qualified electrician and keep portable appliances in good repair. Fit carbon monoxide alarms near fuel-burning appliances. Working guests run kettles, heaters and dryers hard, so wiring and appliances get more use than in an ordinary holiday let.
Licences: HMOs and selective licensing
If several unrelated workers live in a property as their home under a tenancy, it may count as a house in multiple occupation (HMO), and larger HMOs need a licence. Some councils also run selective or additional licensing schemes covering most private rented homes in certain areas. For example, Blackpool Council's inner-area selective licensing scheme covers eight wards and began in April 2025; our Blackpool and Fylde guide has the details.
Whether a contractor let is short-stay serviced accommodation, a licence to occupy or a tenancy depends on the facts, not just what the agreement calls it. Ask your council's private housing team before you start.
Business rates or council tax
Since 1 April 2023, a self-catering property in England is only assessed for business rates instead of council tax if it meets two tests. The government's response to its consultation says it must be available to let commercially as self-catering accommodation for short periods totalling at least 140 days in the coming year, and in the previous year it must have been available for at least 140 days and actually let for at least 70 days. Long single bookings may affect whether lets count as short periods, so check with your council or the Valuation Office Agency.
Mortgage, insurance and planning
- Check that your mortgage lender allows short-term or commercial lets.
- Tell your insurer you are letting to working guests. Ordinary home insurance often does not cover paying guests.
- If the property is leasehold, check the lease for restrictions on letting.
- A big change of use, for example running a house as a hostel, may need planning permission. Ask the council's planning team if you are unsure.
What working guests look for
Crews choose properties for practical reasons, and these are the things they will ask about. See our booking checklist for the guest's side.
- Off-road parking for vans, with no height barriers.
- A proper bed for every person, not sofa beds.
- A kitchen equipped for the full number of guests.
- A washing machine and somewhere to dry work clothes.
- Reliable broadband.
- Flexible weekly terms, clear invoices and someone who answers the phone when something breaks.
- Somewhere secure to keep tools, as covered on our van and tool security page.
Be a good neighbour
Early starts and vans can cause friction on quiet streets. Agree house rules on noise, parking and smoking, give neighbours a contact number, and deal quickly with any complaints. It protects your reputation and your relationship with the council.