Letting a residential property to use as a detox retreat

by Readers Question

16:22 PM, 22nd October 2013
About 5 years ago

Letting a residential property to use as a detox retreat

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Letting a residential property to use as a detox retreat

Hello,

I am looking to set up a holiday ‘detox retreat’ in the Cotswolds where people stay for a week at a time in individual rooms (similar to a holiday home but with individual rooms). I’m thinking of options but considering renting a large 4/5 bedroom property close to me (looking initially for a 6 month contract with the option of renting long term), but I’m not sure if I would be able to rent a ‘standard residential property’ as the property would be run as a holiday home business? I am thinking of purchasing a property in the future, if the business works but I would prefer to rent initially.

I am an experienced property investor and have a number of properties that I rent out, but this is a new area so looking for some advice on the rental issue. Letting a residential property to use as a detox retreat

Thanks for your help.

Helen



Comments

Mark Alexander

16:30 PM, 22nd October 2013
About 5 years ago

Hi Helen

Sorry to be the bearer of bad news but I can foresee numerous problems with your idea, wonderful as it sounds in principle.

Most tenancy agreements for residential properties do not allow for subletting or running a business. I also think it is highly unlikely that a property owner would consent to such use due to the increased wear and tear on their property.

You would also have issues to deal with such as insurance and licensing given that you would be running a business. The property might even be deemed to be a guest house and require upgrades for fire prevention etc. I don't know much about guest houses but this is definitely something to look into.
.
From what you have said it seems like you ought to be renting a Guest house but I suspect there will be very few if any at all that ever come up in the Cotswold on a six month rental basis.

Vanessa Warwick

16:47 PM, 22nd October 2013
About 5 years ago

Hi Helen,

To sub-let a standard BTL property and set it up in the way you describe would be a breach of the owner's T & C's of their mortgage conditions.

You would also need to take out specialist holiday let insurance.

The only way it might work was if you found a property where the owner does not have a mortgage on it, and would be willing to allow the property to be used in this manner.

Why not speak with a local hotel, negotiate a room rate for your guests, and book a room at the hotel, or nearby, to undertake the yoga classes etc? You can create your own "package" in effect. You could test the idea without too much commitment.

Alternatively, book a large holiday let for one month, stay in one room yourself, and sub-let the other rooms to your guests.

Obviously, the weekly rate of a holiday let is a lot more than a standard BTL, so, unless you negotiated a discount for a long booking, then the numbers probably wouldn't stack up.

For everything to do with Holiday Lets, visit the Holiday Lets Tribe on Property Tribes - one of the the U.K.'s leading sources of information for holiday rental owners.

Mark Alexander

17:06 PM, 22nd October 2013
About 5 years ago

Reply to the comment left by "Vanessa Warwick" at "22/10/2013 - 16:47":

Superb post Vanessa, excellent advice 🙂
.

Vanessa Warwick

17:26 PM, 22nd October 2013
About 5 years ago

Thank you Mark.

I forgot to say to Helen that I think these themed/"niche" holiday ideas have the potential to be really profitable.

Self catering accommodation is the fastest growing sector of the tourism industry.

Combine that with people's growing interest in health and wellbeing, and the fact that you can market very effectively to niche audiences via the web, and I believe that you are on to a winner!

A USP like this creates a really stand out offering in the market place too!

A family friend of ours has a wellness business with special beds, water filters, air filters etc. and I wanted her to set up a "wellness" holiday let for people in need of complete recuperation or relaxation. Sadly, she did not run with this idea, but I am sure the demand is there and could create a very profitable little niche for someone!! She could also sell the products used in the home for an extra income stream .... Guests would have had the chance to test them - try before you buy - and then order them for their own home. (These were expensive products so a good way to get new customers in!).

Jayne Owen

18:37 PM, 22nd October 2013
About 5 years ago

Hi Helen,

It's not clear from your post whether you intend offering any kind of therapy as part of the detox. If you do, then in addition to the residential issues that Vanessa pointed out, there might be a commercial rate issue as it could cross the line and be considered as business premises. It might be an idea to talk to the local tourist association in the area you're targeting and perhaps also the council. The tourist association would also be a source of useful local contacts within the industry and with other holiday home owners.

Winsome P

18:40 PM, 22nd October 2013
About 5 years ago

Hmmm well the challenge with these detox retreats is getting a high enough demand. The demand is thinly spread in the country, so to get the numbers there is some serious clever marketing needed. Even then there are all the void periods as well as the cost of the teacher and her accommodation.

However if you want a great holiday then pureandcure.com offer a worldwide range and you can see what you are up against in terms of price and quality.

They had two CEOs of property companies going to Thailand for 14 days with a 7 days detox followed by 7 days fitness allowing them to recover unwind, get fit again whilst shooting the breeze in a beautiful location at the best rates in the world.

puurenkuur.nl is the original and the Dutch are known for getting the best hotel rates in the world including the essential treatment packages, doctors advice transfers. Anyway they are the number 1 specialist so in most resorts they are the biggest booker. Have a break, have a kit kat, have a pure and curing holiday I do!

Puzzler

8:45 AM, 23rd October 2013
About 5 years ago

I know someone in the Cotswolds with the right property who might be interested.

If it doesn't contravene the site's code, please email me direct rannd@hotmail.co.uk

Thanks

Helen Landlord

17:51 PM, 23rd October 2013
About 5 years ago

Thanks for all the info. Yes i would be looking to offer a juice retreat with treatments, yoga, colonics etc. There are many great models running around the country that are successful, but not in my area. I am certainly very passionate about the health benefits, so i'm sure i will find a way of making this work (just may need to rethink a few options).

Mark Alexander

17:54 PM, 23rd October 2013
About 5 years ago

Reply to the comment left by "Helen Landlord" at "23/10/2013 - 17:51":

Helen, did you contact Puzzler?
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Helen Landlord

17:55 PM, 23rd October 2013
About 5 years ago

Reply to the comment left by "Vanessa Warwick" at "22/10/2013 - 17:26":

Thanks for all your comments Vanessa - very useful. Yes this model can be very successful if set up and marketed well:-)

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