If you don’t like the idea of being a full-time landlord, then investing in a holiday property can be a good middle ground. There’s no need to worry about tenants not paying rent or, indeed, having to find reliable tenants and vet them. You simply have visitors for a short period of time, then they leave without a scratch on the property. It can be idyllic – but it’s not without its frustrations.
Conquering your expectations of an easy, simple holiday home rental business is definitely a necessity. While holiday lets can be a good option for a wannabe developer, it’s one you can only go into if you know the realities that lie behind your expectations. So, what should you be wary of?
Expectation: Easy Short-Term Visitors
Holidays are a mainstay of life for millions of people, and they all need somewhere to stay – so why not in your property? You might be aware that you will have periods in the year when your property is less in demand, but during the summer months, you anticipate people basically queuing up to rent for a short time.
Reality: You Have To Hunt For Visitors
Tourist money is a great way of sustaining your way of life for the future, but it’s not as simple as buying a property in the right area and then waiting for the tourists to flock to you. Even if you find apartments for sale in tourist hotspots and snap one up, you’re still going to have to spend time and money making sure potential visitors know that your property exists. There’s a lot of marketing involved. You can, of course, outsource this to an agency, but this can be expensive.
Expectation: Hassle-Free Renting
With a short-term holiday let, you’re not going to have to worry about all those problems that standard landlords get! No calls in the middle of the night to fix plumbing emergencies; no protracted battles over late or non-existent rent! No legal documents to wade through to ensure both parties know where they stand!
Reality: Hassle Is Always Possible
All the problems that can impact a standard landlord can hit you too. Add into the mix that some visitors might not treat your house in the same way a conventional tenant would, and you could even have more problems. You still need to keep an eye on the property and ensure it’s being well cared for, or you could stand to lose a lot of money.
Expectation: Rent Is Always Paid
One of the major benefits of holiday lets is that the “rent” – i.e. the payment for using the property – tends to be made before your visitors have even crossed the threshold. So when you have gone to the effort of securing tenants, you can be sure that you’ll be getting the money owed.
Reality: Exactly That
Without a doubt, this is one of the major attraction points for holiday rentals. If you have been burned by tenants before or are worried about being so, then the pay-before-use aspect of holiday lets is no doubt a major boon.
So do you think you would ever use your investment property for holiday lets?