A lot of people dream of owning their own holiday home, a property they can rent out to earn some extra funds whilst also having their own retreat to escape to whenever they need. Others may see a holiday home simply as a business investment. Whatever your reasons, if you’ve considered owning your own holiday home, let this guide help you get started.
Tips for Managing a Holiday Home
- Choose Your Location Carefully
Think about the type of guests you want to attract, how far away from your current property you want your holiday home to be, and if it’s in the right location for you if you were to choose to live in the property at a later date. Do you want a property local to you, or in a different country?
If you’re considering overseas locations, it’s a good idea to get advice from an international property law firm.
- Choose a Low Maintenance Property
You don’t want to be burdened too much with the upkeep of a property that isn’t even your main home. To successfully let a property and have satisfied guests, your holiday home needs to be in constant working order, clean and functional. Choosing a property that has a manageable space is ideal, such as an open plan apartment rather than a five-bedroomed house. One cost that you may need to incur still could be house sitters from Global Guardians if you need someone to look after the property while it is unoccupied.
- Develop a Sound Pricing Structure
Your aim will be to make as much return as possible with your holiday property. That means that you need to understand your pricing structure and how to use it to make a maximum return. Do your research regarding similar properties in the same area, and price your own competitively.
You should also consider discounts and deals where applicable to ensure that your property is always fully booked. This could include a cheaper rate for peak periods or last-minute options.
- Invest in Quality Marketing
When it comes to accommodation, guests like to see as many photos as possible, and this can often sway their decision. A similar property with higher quality photos may have the edge over your own. Therefore, invest more money in either a professional photographer or a high-quality camera to take photos of your property. It’s also a good idea to include external shots such as outside space and the surrounding area.
The Pros and Cons of Owning a Holiday Home
- A high return on your investment
- The option to eventually make it your permanent residence, possibly when you retire
- You can receive discounts on tax charges if your holiday home is let out for the majority of the year
- The upkeep, including maintenance and cleaning. This can be a demanding task if the property is constantly let out, with the need to deep clean between every new arrival
- Extra stamp duty charges for second homes
- Extra insurance required to cover guests staying in the property, and the potential damage they may cause
Of course, there are advantages and disadvantages to any investment, but if you’re serious about investing in a holiday home, the above information may help you accomplish that goal.