Holiday Behaviour
2021 looks like the year of the staycation! Travel abroad looks a little uncertain this summer. A large portion of the population are looking to stay and holiday in the UK.
We decided to try something new and different with our latest property. Serviced accommodation, or holiday letting. We’re not the only ones. Property news is reporting an increase in people also renting their properties to holiday makers. Though the prospect of getting £100 or more a night is appealing. There are a few considerations that you need to be aware of and take into account before you start writing your AirBnB listing.
Mortgages
If you are needing to mortgage your property and rent it for holidays – it’s a different product than a buy to let mortgage. There are a lot less mortgage products available, though more are appearing. Typically you’ll be looking to pay a slightly higher interest rate too.
Furnishing
Unlike when letting it out as a single let. You need to provide all the furniture and kitchen utensils that your holiday makers might need. Though not difficult to do it does require an element of organisation and you are outlaying more expense upfront.
Outgoings and Fees
Similarly, unlike with a single let you’ll be expected to pay the bills. Including electricity, gas, council tax, WiFi and TV. On top of this you might want to use a management company. They can deal with your bookings, pricing and will clean your property in between holiday makers and provide clean linen. Typically companies will take between 20-25% of your nightly rate. The bookings companies also deduct their fees from each stay for advertising etc.
All in all if you run your numbers carefully. Using your property as a holiday let can certainly be lucrative. Hopefully this post helps you realise there’s a bit more to it and you don’t get caught out. To read more about our recent projects head to our projects page.
Realm Property Investment are still actively pursuing opportunities. We are out actively viewing properties and will pay good referral fees for any opportunities that go through to purchase.
We offer great returns on your investment but without the hassle. Get in touch if you would like to learn more.