The “staycation” trend and collapsed pound kept us all at home last year. According to figures from Visit Britain, the number of UK self-catering holidays increased by 25 per cent between January and November 2009. Government estimates put the number of second homes in the UK at 1.7 million, including buy-to-lets. With bigger bills to pay, new buyers are being joined by long-term second home owners ready to rent out their personal retreats to bring in extra cash. Here are ten tips for rental success:
1. Do buy the right property
The old adage “location, location, location” applies. Only petrochemical engineers want to holiday next to an oil refinery. Seaside holidays are the most popular. Try an area during different seasons before you buy, if possible. Think about transport and whether it, too, is seasonal. Match your holiday home to the kind of tourist attracted to that area.
2. Do make it look nice
“Holidaymakers’ expectations get higher every year in terms of standards and facilities,” Simon Nicholson, of West Country Cottages, says. Better-quality furniture can take the rough and tumble. Your personal taste may not be others’, so opt for a neutral look and accent with more colourful accessories to maximise the appeal. Outdoor dining areas, sun loungers and a barbecue go down well.
3. Do clear out your knick-knacks
If you use the place yourself, lock away personal clutter in a chest, cupboard or unrented room. People don’t want to feel like they are staying in someone else’s house so your wedding photo by the bed is a no-no. But toys, DVDs, books and games will brighten up a rainy day, and families appreciate high chairs, cots and stairgates. Buckets and spades, baby monitors and a steriliser kit are optional extra touches.
4. Do spend your money wisely
“Make the best room better and invest in the worst room. Go for consistency throughout the property rather than splashing out on a designer kitchen and forgetting to sort out the damp patch in the bathroom,” Ross Elder, of holidaylettings.co.uk, says. Aim for a good standard and keep it clean and well maintained before buying the biggest flat-screen TV you can fit into the lounge.
5. Do price it right
Check out the local competition and price accordingly — too much and you’ll have empty weeks. Underprice the peak periods and you leave little room for manoeuvre during the off-seasons. Calculate how much you need to break even and this will show you where and when you can be flexible. Do factor in the extra costs, like heating and lighting.
6. Do put the word out
Word of mouth is invaluable. People coming back for more is good for business. Local full-time property agents will charge around 30-40 per cent, while holiday booking agents such as West Country Cottages, who take care of the advertising, bookings and payment-chasing, will charge around 20 per cent, but both will want to take over the property for most of the weeks in the high season. If you want more control over lettings you may wish to let out directly. Web advertisers such as holidaylettings.co.uk charge £200 a year and owners keep all the rental. Highlight the property and the region’s plus points.
7. Do take good photographs
“The best tip is that browsers want to imagine themselves in the photo,” Elder advises. Lay the table ready for a meal with the sun setting over the sea, but don’t include any food or diners in the picture. One photo on a website included the owner’s paunchy husband in his Speedos taking an outdoor shower. Toilets are assumed as being part of the deal — there’s no need to highlight them.
8. Do make it legal
There are different rules in different countries. Mortgage lenders will need informing. Extra public liability insurance may be required as well as landlord’s certificates for gas and electricity. The rental should be covered by a contract, which includes deposit/payment terms, cancellations, breakages and complaints. Sample contracts can be found online, but have them checked by a solicitor.
9. Do get the money right
Make sure you are aware of the tax implications of earning income from your holiday home. Pre-election jitters have led to the scrapping of government plans to change the tax rules for furnished holiday lettings due to come into effect this month. But the new government will need to clarify the situation and second homes will remain a target for revenue-hungry chancellors.
10. Do make changeover day smooth
Doing it yourself can save money, but if you work full-time, 20 Saturdays spent hoovering, scrubbing, weeding and mowing may not be practical. Hire a local, or shop around for domestic cleaning companies. Property management companies charge more but you may be able to negotiate a bespoke service.
holidaylettings.co.uk westcountrycottages.co.uk
Saved by a holiday cottage
Gill and David Tomkins live in Dudley, West Midlands, and like many others were tempted into buying extra property six years ago.
Extracting equity from their main residence, they bought two buy-to-let properties, one in Birmingham, the other in Rosyth in Scotland. These are rented and are paying their way, though capital values have slipped in both cases.
In 2004 they also bought a £124,000 holiday retreat in Snowdonia, near Barmouth, at the end of a village with a small patch of land attached to it a mile from the coast.
They spent four years restoring it, intending to use it for family weekend breaks with their children who range in age from 10 to 26. They considered letting it out for, perhaps, ten weeks a year to cover the bills.
Plans changed, when first David, 51, and then Gill, 50, were made redundant last year. They put the property up for rent for 40 weeks last year, and for an estimated 44 weeks this year.
They keep the costs down by doing the changeover and maintenance themselves and advertising on holidaylettings.co.uk.
“You have to keep beavering away. Give people a quality product for a good price,” says Gill, who remains resolutely cheerful in a time of adversity.