In this post, we give the top 10 tips for letting out your holiday let.
Whether you’re an experienced owner or are taking your first steps in this exciting journey, you’re bound to pick up some valuable holiday let advice and tips in this post.
1. Where to buy a holiday home in Ireland
Deciding where to buy your holiday let is an important decision and there are certain things you’ll want to consider. If you plan on visiting the property frequently, then you’ll want to choose an area that suits your needs.
You ought to take into consideration the impact an area can have on your occupancy and booking value, for example, homes in areas such as in rural areas around Dublin, Cork or Galway holidaymakers.
If you intend to carry out maintenance and manage changeovers yourself, you need to factor in the flexibility of you being able to visit the property.
Holiday home owners who choose to not have a hands-on approach with their property, arrange for someone else to do this for them. A reputable holiday home agency can organise these services for you.
2. What mortgage do you need for a holiday let?
The type of mortgage you require for a holiday rental may be different from a standard residential mortgage or that of a long-term rental property. Many buy-to-let or residential mortgages do not allow you to let out the property as a holiday rental or on a short-term basis.
Some mortgage providers offer packages specifically designed for short-term rental properties and are more flexible with the amount of income your property receives. Seeking advice from someone who has experience with holiday let mortgages would be beneficial.
3. Take advantage of tax benefits
Unlike long-term rental properties, which are classed as an investment, short-term rental properties are treated similar to a business and come with certain tax advantages, such as Capital Gains relief and allowable expenses.
These benefits allow you to offset expenses you incur, such as utility bills, agency fees and some furnishings, against your annual profits.
4. Holiday Home Insurance
Obtaining the appropriate insurance policies for your holiday let will protect you from any unfortunate mishaps that may occur; this could be as small as a guest accidentally breaking something in your property, to serious damage caused by a fire or flood.
There’s a variety of insurances for you to choose from, including Buildings Insurance and Public Liability Insurance.
5. Features that increase your booking value
It may not come as a surprise that certain features are extremely desirable in a holiday home, but did you know that welcoming pets to your property could have a significant impact to the number of bookings you receive? Or, adding a hot tub or log burner can both increase the appeal of your property and its booking value?
Time researching what features are in demand in your area and what the competition are offering can provide you with the opportunity to distinguish yourself from other holiday homes in the area.
Renting a holiday home with a hot tub
Hot tubs are a firm favorite with holidaymakers, and it’s a trend that is rapidly growing in popularity. Properties that can offer a hot tub can earn significantly more in profits than properties without one. One thing to consider however, is that the running costs are also quite high. Here’s what you need to know if you’re thinking of renting out a holiday home with a hot tub.
Installing a hot tub in a holiday home
Firstly, you’ll need to choose your location. Ideally, you need to be able to offer a great view from the hot tub. If you don’t have a view, think about how you can make the site look appealing, such as fairly lights or greenery.
Make sure you place the hot tub close to an outdoor tap, so that you easily fill and drain it.
Ensure that your base is strong and secure, so that the weight of the water will need to be supported, as well as the people who are in it. If you are creating a space for a hot tub, make sure you plan it well, and that if you choose decking, it is strong enough to support the weight.
Running costs of a hot tub
Knowing how to let holiday homes with a hot tub will take time and research. Although offering a hot tub when renting out a holiday home can be profitable, you need to consider the added costs of the hot tub itself:
• Energy and water costs • Cleaning and maintenance • Repairs • Purchase and set up costs • Insulation
Maintaining a hot tub when renting out a holiday home
If you are renting out a holiday home with a hot tub, then it will need to be cleaned between each use for health and safety reasons. It will need to be drained, cleaned and refilled with the correct use of chemicals.
Checking that the filter is clean is imperative, to make sure that the hot tub continues to run efficiently. You need to make sure this is done by someone who knows what they are doing. A hot tub can take up to 8 hours to arrive at temperature, and this will often be something that is done during changeovers. You need to be in contact with your guests to make sure that they require the hot tub, because you don’t want to waste time and energy to prepare it, if it’s not going to be used.
Do you need insurance for renting out a holiday home with a hot tub?
Health and safety is a big concern for people who are considering renting out a holiday home. You will need public liability insurance that covers for the use of hot tubs, and any other feature of your property that could pose a potential risk to your guests.
Slippages and burns are just two of the many issues that you could become liable for if your guests suffer an accident at your property.
Will you require planning permission to rent out a holiday home with a hot tub?
Renting out a holiday home with a hot tub does not usually require any planning permission, but in certain areas it might be worth checking with your local council. There are certain areas where restrictions may apply with regards to the structure, waste and extra noise that may occur. You can do some research and take a look at our properties that offer the hot tub experience to their guests.
6. The small touches make a difference
Small touches go a long way to making your guests feel comfortable in your holiday home. Simply turning the heating on during the winter months, prior to your guests’ arrival, or adding a few cosy touches to make the place feel welcoming and homely, can make a significant difference to how your guests feel during their stay at your property.
Why not leave some treats for your guests to enjoy when they arrive?
7. Make a welcome pack
We often take for granted how complicated our everyday appliances can be for someone that is unfamiliar with them – from operating the shower to programming the timer on the oven.
A welcome pack is effectively a ‘survival guide’ to your property and ensures that your guests remain relaxed during their stay. Creating a welcome pack is also a good opportunity to provide information on the surrounding areas: where’s best to eat, what’s the local taxi firm, etc.
8. Be flexible with bookings
Last year, over 40% of all holidays taken in the Lake District and the Peak District were short breaks and nearly half of all holidays taken in the winter months are short breaks.
With the demand for this type of holiday increasing, making your property available for short breaks exposes your property to a large market. You may want to also consider accepting last minute bookings as holiday homes that accepted last minute breaks gained three times as many short break bookings.
9. Listen to feedback
Many of the most popular holiday homes in Ireland achieve great ratings because they’re proactive when it comes to negative feedback and resolve issues to ensure future guests have the best possible experience.
It’s important to provide your guests with a channel to give their feedback and recommendations. Listening to this feedback and making improvements is the best way to increase the number of repeat bookings your property receives.
Whether it’s as simple as providing an extra set of towels for the hot tub or adding more seating to the garden, improving the experience your holiday home provides is the best way to maximise the number of bookings you receive.
10. Grow your holiday let business
The most successful holiday home owners are continually making improvements to their properties by reinvesting a portion of their profits back into their holiday home business, whether it be adding desirable features, renewing furnishings or expanding their portfolios into multiple properties.
Owning multiple holiday homes may not be something you wish to explore, but, at the very least, you ought to be investing money in keeping your holiday home to a high standard, as you’ll want to ensure your property has a continual flow of bookings and receives the maximum potential booking value.
Need help with the next steps of your letting journey?
If you’re thinking of buying a property or just need some advice, our property experts can help answer any queries you may have.
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