Buying a second property to rent out as a holiday rental can be a great investment and a good way to get income, especially if it’s in a desirable location. Plenty of people buy holiday homes in destinations that they enjoy returning to themselves each year, and then rent the property out for the rest of the time. This way, they both benefit from it themselves and can give genuine recommendations when it comes to their guests. With multiple platforms now available to list your holiday property on, marketing it has never been easier.
However, since it’s likely to be both a cost-heavy and time-heavy investment, buying a second property is a decision not to be taken lightly. Here, we take a look at some of the top things to consider before you take the plunge.
Location, location, location – this is absolutely crucial when it comes to a successful holiday rental. Whilst you can market more remote properties as rural retreats, perfect for relaxation and a digital detox, the chances are this will be a much harder sell than a property in a popular town. However, the popularity of the destination will also affect the property price, but in turn this will affect how much you can charge.
Remember to consider accessibility and amenities, as well. Not all your guests will have access to a car, and so if there are no shops around and they have to bring all their food with them, this could prove difficult. Whilst this doesn’t mean you should rule out a property, you’ll need to make this clear to guests.
Consider if you’ll be cleaning the property after each stay, or will you look to get a professional in? Whilst cleaning yourself can save money, it is also incredibly time consuming, and a professional is likely to do a more thorough job. Also, if you don’t live locally, it’s impractical to think that you can do the cleaning yourself.
You could use a local cleaner, or choose a firm. Whatever you choose, make sure to communicate booking dates with them, to ensure that you can offer a clean and hygienic property to your guests. It’s possible that they’ll also be able to offer a multi-clean package, meaning that you get a discount, rather than paying full price each time.
Make sure you’ve considered the ties on your time when committing to a holiday rental. Most likely, you’ll need to have an emergency contact, who can respond at least within a few hours to potential problems. For example, should there be a leak, or a problem with the oven, you’ll need to either be able to give advice, fix it yourself, or arrange for someone to fix it quickly. In order to do this, you’ll need to make some local contacts who know the property who you can contact at short notice.
Whilst hopefully these occurrences are rare, they do happen. If you go away on a trip yourselves, it may be that you need to have a backup contact who is happy to cover whilst you’re on your own holiday. Spending some time considering these practicalities, creating an emergency plan and communicating this with guests will help you keep your side business running smoothly.