Advice On Renting Out Your Holiday Home

This blog post is a guest post sponsored by holiday home insurance provider Towergate Insurance, and was contributed by Charlotte Walker.

Thinking of buying a holiday home with the intention of renting it out? There are a number of considerations to take into account if you’re considering letting an overseas property.

Who is your property for?

Decide if the property is primarily for lettings or for your own personal use. Do you need it to pay for itself? If holiday lets are your top priority, then you’ll likely have to cancel visits in the peak season, when you will have the most demand and can charge the highest rates.

Many people need easy access to amenities and facilities whilst on holiday, and if they don’t need to hire a car then that’s even better. What do people visit your chosen location for? Whatever it is make sure your location is within easy reach. It will need to be fairly close to the airport, some shops and restaurants to maximise its letting potential.

Don’t forget the extras!

A swimming pool is vital for rentals in some locations. Whatever facilities your property has, you need to promote its unique selling point. Even if you are in a complex where every property is identical you can still offer services and facilities that other landlords don’t – think laterally.

A welcome hamper is a nice touch, or a bottle of wine. Kids’ toys or books and DVDs in the property, Satellite TV too, or you could even negotiate discounts from local businesses for your guests. Stylish, high-quality furnishings can also attract people – so, can holiday homes insurance and other practical packages.

Always consider your finances

Don’t be caught out by hidden costs associated with letting. The obvious ones are agents’ fees, which can amount to 20% of your income. Some include a host of services such as key holding, maintenance, cleaning, and marketing. If you choose not to use a letting agent then you’ll either need to organise all these services yourself or find a friend or neighbor to help.

Income tax is something many people ‘forget’ about, but you do need to pay it if you receive income in that country/currency. How much will depend on where you are and how much you earn – many owners also forget about utility bills and council tax equivalents. Whilst council tax tends to be cheaper in Europe than in Britain, other services may be more expensive. Water shortages can mean higher costs in some areas. Air conditioning uses huge amounts of electricity so remember to allow for this when setting your rates.

LIKE THIS POST? THEN PLEASE SHARE IT WITH OTHERS!

Click Any Of The Buttons Below- or Click Above Right To Tweet It now!

Dont Be Shy! We Would Love Your Comments too-And We Always Respond.Thanks!