Should I sell or risk tenants buying at undervalue price?9:08 AM, 25th September 2019
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Purchasing a holiday let can be a very rewarding and enjoyable endeavour. In this article we outline five things to consider when purchasing a holiday let, that will increase both bookings and your potential rental income.
UK Holiday lets are becoming an increasingly popular choice for families and couples searching for the perfect getaway. With the demand for UK holidays increasing, you’ll want to be sure the features you include in your new holiday let will provide you with higher profits. Here are a few areas you may want to consider:
Should you get a hot tub?
Did you know that holiday lets with hot tubs could generate up to 50% more rental income than cottages without? That combined with an average occupancy increase of 14%, could make purchasing a hot tub for your new holiday let very advantageous. There is an initial expense of purchasing a hot tub and associated running costs, these ought be taken into consideration when calculating any potential profit increase. A common oversight when purchasing a hot tub is the time needed to regularly inspect the appliance so your responsibilities and duty of care as a holiday let owner are met.
Is WiFi worth your investment?
We are living in an increasingly connected world. With the number of free WiFi hotspots continuously increasing, there is an expectation for your new holiday let to provide a free internet connection to its guests. Many holiday destinations lack a strong mobile data connection, so it will come as no surprise that holiday lets that provide WiFi enjoy up to 10% more annual bookings – the additional bookings will easily pay for the cost of this service.
Does allowing pets increase occupancy?
If you don’t have a furry friend yourself then you’ll probably know someone who does. The demand for pet-friendly properties remains extremely high. For example, single bedroom properties in Mid Wales that were pet-friendly saw up to twice as many bookings than those which weren’t. This clearly differs from region to region, but on average, pet-friendly properties tend to get 4 more bookings per year.
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It will come as no surprise that the location of your new holiday let will significantly impact your potential profits. When choosing the best place to buy a holiday home in the UK, there are a few things you need to consider.
It may seem obvious, but the more popular a destination is the more you can charge per booking. So when considering where to buy your new holiday let, it is worth spending time researching other holiday let’s annual prices in the area. For example, properties in Cumbria earn up to 35% more annually than those in Gwynedd, Wales.
However, your investment of purchasing your holiday let needs to be taken into consideration. Whilst properties in Cumbria do generate a higher annual income, house prices are also higher. For example, a semi-detached property in Cumbia’s famous national park, the Lake District, would cost you up to 40% more than a similar property in Gwynedd, Wales. http://www.rightmove.co.uk/house-prices-in-Gwynedd.html and http://www.rightmove.co.uk/property/Lake-District.html).
When deciding the ideal location to purchase your new holiday let, time spent researching and calculating your potential income and expenses, will optimise your return on investment.
Buy stuff that lasts
Like your property, the furniture you purchase needs to be a strong investment. It ought to be easy to maintain and should be able to withstand the large volume of people who will use it over the years. This is even more true if you accommodate families or pets. A leather couch, for example, is far easier to clean than a fabric one and will be able to survive frequent use. Likewise, light coloured fabrics will stain easier.
A holiday’s for relaxing
Your holiday let should provide guests with a space that they can relax in – as if it were their own home. To do this, the type of furniture you choose should have a broad appeal and feel like it is of good quality. Consider what the “living areas” of the property are and endeavour to make them as comfortable as possible – don’t confine this approach to just the inside of the property, if there’s a patio or decking area, for example, furnish this to a high standard too (patio set and barbeque perhaps?).
If you have bought your home in an area where the average rental rate is higher, then your customers will expect the property to be furnished to a higher standard. It is important to reflect your prices so that your guests feel they are getting a good value for their money.
You’re probably aware that building a reputation takes time, so you should start out as early as possible. Creating an up-to-date online presence is a great place to start and will increase the chances of your holiday let getting noticed. This also provides the opportunity for holiday goers to engage with you.
Asking people to leave a review online actually increases the amount of reviews you receive. People are more likely to recommend you if they’ve had a great experience, so it’s important to do everything realistically possible to ensure your guests have an amazing stay.
Many customers will openly suggest areas in which their experience could have been better. It is important not to ignore this and to make improvements wherever possible. This might be as simple as buying some wine glasses or jet washing a slippery patio. Furniture will need maintaining or replacing from time-to-time and factoring this into your budgets will prevent such expenses being an unanticipated shock.
Keep an eye on what your competitors are doing (other holiday lets in the area). You may be the best in the area currently, but if they’re all consistently making improvements, they may start to receive a higher share of the bookings. The best holiday let owners are consistently improving their properties and staying ahead of the competition.
If you’re looking to invest in a holiday let, then we’re here to help. With over 25 years experience in the business, our professional team will be able to offer you expert local knowledge. For more information please Click Here
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