Advice For Holiday Home-Owners – Rent Your Property Out
Tuesday, December 06, 2016 • 10 comments
Investing in a holiday home can be a big ask, especially if you’re only staying there for a fortnight a year. Buying a property and becoming a holiday home landlord is a great way of making money out of your property when you’re not using it. In fact, renting your property out could earn you three times more income than a buy-to-let.
Of course being a holiday home landlord is no easy task, especially as you may not be living in the vicinity. Here are some things to consider before making the step.
The cost of furnishing
Many of the furnishings will be able to be carried out cheaply. Keep things rustic. The only things that you should shell out on are good quality bedding and a power shower (these are the things that will keep your guests happy).
If the property is in a typically cool climate, make sure that there is efficient heating. Likewise, if your property is located in a typically hot climate, make sure your guest have air conditioning. Everyone uses social media and emails on holiday these days, so ensure that the property also has Wi-Fi (although you could advertise your property as a digital detox).
Looking after the property
If you don’t live locally to the property, someone nearby will have to provide keys, clear up and answer to any complaints. This could mean paying someone to act as a stand-in landlord in order to keep things running smoothly.
It’s worth enforcing rules for holidaymakers that will stop them from damaging your property or leaving it in a mess. Have a clean-up policy (they will have to pay for cleaning if they make a mess!) If you need to call in emergency cleaners you can use a service such as the whizz hire a cleaner mobile app to do this. Also have a handyman on call to deal with repairs, and charge guests for any damage or introduce a deposit system to stop them from getting unruly.
Choose the right mortgage
A second residential mortgage or a buy-to-let mortgage will not allow you to put the property up for rent. You must use a normal mortgage if you want to be able to let it out to guests. Banks and brokers will be able to find you the best deal so that you’re making a profit.
You’ll have to get your property promoted online in order to start attracting guests. Some holiday hosting websites will need to be paid to host your property; others are free. Get family, friends and guest to write positive recommendations and reviews to make your property more attractive. The urge at first may be to charge high prices in order to pay off the costly mortgage. However, this may ward people away and leave your property empty throughout the year. Start the price low at first to get people lured in. Wait until you start getting a steady stream of guests, build yourself a reputation through reviews and recommendations and then slowly increase the price!