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Make money renting out your holiday home

Have you inherited a property you do not know what to do with? A second home that collects dust? It’s time to earn money by renting a vacation home!

If you might be lucky enough to own a vacation home, it may turn out to be more of a financial burden than a luxury. If that is the case, take a look at our ways to monetize this secondary location.

Why would you rent your holiday home?

Cottage in Grasmere, Lake District

Personally, we predict it’s a terrific idea for a rental.

Sarah Woods is the founding father of Mulberry Cottages, a boutique vacation rental agency that, amongst other things, strives to match homeowners and guests to create luxury self-catering holidays.

She explained to us some great benefits of renting a vacation home versus long-term rental, an arrangement that gives favorable tax breaks and means that you can use it as a vacation home for yourself.

Tax advantages

sara says:

However, these tax credits only apply to properties registered as FHL or Furnished Holiday Let. Qualifying as an FHL is fairly easy; the property must, amongst other things:

  • They contain furniture for “normal work” – when you usually are not normal, research could also be so as.
  • Be within the UK or the EEA (excluding the Isle of Man and Channel Islands).
  • Be available for hire for at the very least 210 days a 12 months and be booked in for at the very least 105 of those days.
  • I’m renting my property with the intention of earning.

You can read more about the various terms at this link here.

Keep it as a vacation home

After all of the exertions of getting your own home ready for guests, it’s only fair that you could have a vacation too!

In addition, staying at your property for an extended time frame will make it easier to understand the experience of your guests.

  • What is the WiFi and/or phone signal?
  • Is there a visit hazard within the garden?
  • Does the heating sometimes turn off by itself in the course of the night?
  • Do you wish directions to the closest supermarket?

Of course, when you live here permanently, you could not notice or already take care of such concerns. For those that have never lived of their area properly, vacation may be a useful element of research.

We all dream about such holidays at work.

Is your own home suitable for holiday rentals?

Holiday home in the south of France

Location

Like every business student and observer Student knows, crucial thing to take into consideration is:

  • Location,
  • Location,
  • And the situation!

For long-term tenants, crucial is often the gap from the place of residence to highschool or workplace, in addition to easy accessibility to the closest town.

However, vacationers often wish to escape the trivialities and congestion of on a regular basis life and search for an undisturbed and delightful place.

On the opposite hand, tourists heading to honeypot destinations like Devon or Cornwall should want to get something more intimate and private than the final hotel experience.

Both vacation rentals and long-term rentals are viable options, but the situation of your property is critical in determining where you wish to do business.

Design

The advantages we discuss below have made renting a vacation home a very talked-about option and in consequence the market is overcrowded. To be noticed by potential guests, you want to be visible.

sara says:

Whether your own home is modern, retro, charming or impressive, Mulberry Cottages estate agents are here to advise you on learn how to best bring out what makes your holiday home special.

It is then sold using the services of an expert photographer to capture the great thing about your own home as accurately as possible.

How much money are you able to earn?

Spanish holiday home/villa by the sea

When people first consider renting a house, the plain option is often a long-term rental where people stay for months or years. This definitely has its benefits, however it may very well be less profitable than a vacation rental.

Sarah says:

Staycations have gotten increasingly popular as UK residents turn to exploring their very own country moderately than the dearer overseas shores; is the right time to begin renting a vacation home. The money that families save on flights also incentivizes them to enjoy other facets of the vacation, in order that they are willing to pay a better price per week than a daily renter.

Expert advice

Pool ladder

buildings

Do you could have something extra – or are you able to install something extra – to get more attention?

As global warming gives us long, hot summers with glorious sunshine (sorry icebergs), all they need is a pool and a chilly drink. Unfortunately, it’s rare that there’s a place for a swimming pool within the backyard. So a vacation home with even a small pool is more likely to see a major increase in bookings.

Alternatively, a hot tub is a favourite the remainder of the 12 months and far inexpensive to put in.

Less obvious (or more obvious, depending on the way you see it) features will also be included in your marketing, resembling:

  • Wi-Fi access
  • Hair dryer
  • Bedrooms with bathrooms

You must also consider carefully concerning the basics. For example, Sarah suggests that high-quality beds are essential. Guests who don’t sleep well won’t be comfortable guests and will leave annoyed reviews on TripAdviser.

paperwork

Unfortunately, boredom again comes first:

  • Vacation home insurance, including liability – essential in case you unwittingly host a wild party and all of your utensils are broken similar to the locals.
  • Fire Risk Assessment – to be carried out and details of fireplace exits placed within the Welcome Folder.

It can be often appreciated when this welcome folder is supplemented with local knowledge and helpful information. You can include:

  • Telephone numbers for local taxis, nearby takeaways, hospital and your personal contact information (just in case)
  • Directions to beach, pub, supermarket
  • Hidden gems resembling local natural wonders, quaint restaurants, places of historic interest

Personal contact

An indication that somebody cares is what is going to keep your guests coming back. Make the house look inviting for his or her first arrival, with rooms which can be vivid, clean and warm.

Try leaving them a welcome basket of local produce or a hand-crafted souvenir. Or hop inside to point out them around. It won’t cost you much, and as Tesco customers know – every zloty helps!

Ask questions on getting cash

The Magpie community is stuffed with clever savers and creators – and now’s your probability to ask your burning questions!

New MoneyMagpie bulletin board brings together the Magpie community, the MoneyMagpie team and vetted experts to supply answers to your basic money making questions.

Take a glance here and register to post a recent thread or reply.

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