You are considering
buying a dedicated vacation home, but might also want to let it out to cover
expenses. This guest blog is from Property Venture® an award-winning, overseas, real estate agency,
offers some advice on what to consider before doing this.
1. What is most important to
get right?
When buying a vacation or holiday home,
which you might want to let out, it is worth considering, who else might find
it an attractive place to stay. Who exactly is the type of vacationer or
holiday-maker you want to attract?
Is it the standard family of four? If so
then ensuring the outside area is practical and can be sectioned off for small
children, so the pool doesn’t become a hazard, ought to be a priority. What’s
more, there can be strict regulations about this in many countries, which may require
extra expenditure before you can let out a property.
2. What makes a good Vacation
or Holiday Let property?
Most people going on holiday want to be in
close proximity to amenities, the beach, restaurant, bars, with lots of
activities for the kids. So whilst a remote farmhouse cottage might seem dreamy
to you, it could be more niche when it comes to successfully letting out your home
and you are likely to face dwindling returns.
What’s more, if you buy a run-of-the-mill
two-bed apartment on a huge development, where lots of others are renting out their
holiday homes, then you are going to need a serious point of difference to make
it stand out from the crowd. If you don’t, then you could face regular rental
period voids.
3. What makes a good Vacation
or Holiday Let location?
Coastal locations are always good, or near
main cities. So in Spain the Costa del Sol is usually a good bet, near main
conurbations like Marbella, or on the Costa Blanca, places like Altea, Denia
and Javea have long been favourites for British, German and Scandinavian
buyers, so it is possible to appeal to a broader group of holiday-letters.
4. Returns on a Holiday let
can differ by country.
In places like Turkey, which has become
increasingly popular as a tourist destination, bigger villas tend to be in short
supply in certain destinations, so these tend to rent out quicker and at a
decent price. Given the cost of living is lower, running costs are reasonable,
so enabling decent net returns.
5. What type of Vacation home?
It isn't always about sun, sea and sand.
Take somewhere like Krakow, Poland, which is hugely popular as a city-centre
break, given its history, culture, arts and entertainment. Culture-vultures
could not choose a better place as a base from which to explore parts of Europe,
cost-effectively.
Cities like Barcelona are perennial
favourites to a whole host of different nationalities, because of accessibility
by air, high-speed rail links and sea. Its architectural heritage, and relaxed
lifestyle act as a magnet.
If it is about the seaside, then consider
coasts where the temperatures are higher, longer and have lots of amenities
like Golf, which can help extend the holiday rental period from March through
to October.
6. How can I reduce the
effort I have to spend letting it out?
Vacation or holiday letting tends to
require more effort than a standard buy-to-let property, due, in part, to a higher
turnover of renters for shorter periods of time. So it is worth bearing in
mind, looking after the vacationers you attract will go a long way to reducing
effort. Repeat vacationers or holiday makers, is less effort than attracting a
first-time holiday-maker.
7. Allocate time
If you want to maximise holiday rental
returns, it is wise to think through the effort you might need to put in, even
if you have an agent on the ground to look after the property and check people
in and out. Certainly in the early stages to get an established rental pattern.
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