Renting out your home as a holiday let can significantly boost your income. However, it’s important to understand the relevant rules and regulations before diving in. This guide will help you navigate the process of renting out your home as a short-term holiday let, and how having the right agent can simplify it.
What is a holiday let?
A holiday let is a property rented out for short-term stays, ranging from a single night to several weeks. These properties are fully furnished and equipped with all the essentials to ensure a comfortable stay. Holiday lets are often located in popular tourist destinations, cities, or other desirable locations.
How much could you earn from a holiday let?
As a holiday let owner, you can set a nightly rate for your property, adjusting it based on seasonal demand. Researching similar properties in your area can help you determine competitive pricing. Consider offering discounted rates for longer stays and increasing prices during high-demand periods like weekends.
Preparing your home for a holiday let
To stand out in the competitive holiday let market, your property must meet certain standards and requirements. A unique theme or décor can attract more guests. Higher-quality properties tend to perform better, as guests are willing to pay more for a premium experience. Whether it’s a cozy log cabin, a modern city apartment, or a charming seaside cottage, properties with distinct personalities are more appealing to guests.
What are the running costs for a holiday let?
Understanding the costs involved in running a holiday let is essential, especially if you’re new to the market.
- Mortgage Costs: Factor in monthly repayments if the property is mortgaged.
- Advertising: Continuous advertising across various platforms is necessary to maintain a steady flow of guests.
- Cleaning: Each turnover requires a thorough cleaning, which means ongoing expenses for cleaning services.
- Maintenance: Regular maintenance and repairs are needed due to higher wear and tear from frequent guests.
- Utilities: Gas, electricity, water, and Wi-Fi are ongoing expenses.
- Insurance: Building and content insurance are required, along with additional coverage for emergencies, accidental damage, and legal issues.
- Property Management Fees: Working with a letting agent can provide a hands-off approach, managing the property for a fee.
Rules and regulations for holiday lets
Running a holiday let requires adhering to various legal and non-legal requirements. If you have a mortgage, check with your lender or a mortgage broker to ensure short-term rentals are permitted. As a landlord, you are responsible for maintaining the property and ensuring it meets safety standards.
Legal requirements include:
- Fully furnishing the property
- Renting it out for at least 105 days per year
- Performing fire risk assessments and installing necessary fire safety equipment
- Installing smoke and carbon monoxide alarms
- Obtaining a gas safety certificate
Non-legal requirements include:
- PAT testing for electrical appliances
- Obtaining an electrical safety certificate
- Conducting hazard assessments for pools and hot tubs
As a local letting agent, we can handle these requirements for you, reducing stress and ensuring compliance.
The importance of managing a holiday let
Managing a holiday let can be time-consuming, depending on its popularity. High-quality customer service is essential for repeat business and positive reviews, which boost the property’s appeal. An external management service can handle guest queries, maintenance, and other tasks, allowing you to focus on providing the property and enjoying the profits.
Looking to rent out a property as a holiday let?
If you want to know more information about holiday lets please contact our local lettings experts on 01634 570057 or book a free online property valuation.
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