Rent to Rent holiday let – advice please
I own several properties, and I also lease several properties from other landlords to rent out (an agreed Rent to Rent scheme). I’ve been a landlord since 1997, and have been doing R2R schemes since 2005. These have always been as self-contained properties let on standard ASTs, or as properties converted into and let as HMOs.
I’ve now had an owner offer me a cottage for lease as a R2R property, and this is next door to one I already own and rent out on an AST (so my tenant can keep an eye on it for me). A room in a guest house in the town starts at £65 per night, and are usually fully booked, so I think this cottage would make a great holiday let. Other self-contained holiday lets in the area start at £300 pw. I have no experience of holiday lets, so I wondered if anyone experienced in this market could give me some advice please, e.g. how best to set this up, what agreements to use, what insurance may be needed, etc, etc.?
Thanks
Robert
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Newbie - needs a bit of advice buying flat and Freehold
Member Since February 2011 - Comments: 3453 - Articles: 286
10:23 AM, 18th August 2015, About 11 years ago
Hi Robert,
Interesting question and I am only guessing here, but would it not be the same type of contract that a holiday company such as Hoseasons would have with an owner.
Maybe you could enquire with them hypothetically to find out exactly how it works.
I am assuming the buildings insurance would need to be taken out by the owner to prove insurable interest and there would be specialist holiday packages available.
Member Since August 2014 - Comments: 39
3:28 PM, 18th August 2015, About 11 years ago
You also need to consider council tax. As I understand it, if you make a property available for holiday let for more than so many days of the year (regardless of whether you actually let the property for that period), you have to pay commercial rates rather than council tax. You need to check with your local council.
Member Since October 2013 - Comments: 1311 - Articles: 10
7:23 PM, 18th August 2015, About 11 years ago
Reply to the comment left by “Neil Patterson” at “18/08/2015 – 10:23“:
It’s a good idea, but I’m not sure that Hoseasons (or similar) would share commercial information like that. I’m not too worried by the lease agreement between me and the owner, but I do need to know about the holiday rental agreements.
Yes, I assume the owner would need to ensure the buildings insurance is suitable. I guess the Property 118 insurance broker would be able to provide this type of insurance.
Member Since October 2013 - Comments: 1311 - Articles: 10
7:25 PM, 18th August 2015, About 11 years ago
Reply to the comment left by “Alan Bromley” at “18/08/2015 – 15:28“:
Thanks Alan, it did not occur to me that it would be a different type of Council Tax, so I will need to enquire about this with the local authority.
Member Since February 2011 - Comments: 3453 - Articles: 286
7:31 PM, 18th August 2015, About 11 years ago
Reply to the comment left by “Robert Mellors” at “18/08/2015 – 19:23“:
Hi Robert,
I am sure Jason can help with the insurance when you need it just let me know 🙂
Member Since August 2014 - Comments: 39
9:16 PM, 18th August 2015, About 11 years ago
It’s a government rule, not specifically local council: https://www.gov.uk/introduction-to-business-rates/self-catering-and-holiday-let-accommodation.
Member Since April 2014 - Comments: 38
12:36 PM, 25th August 2015, About 11 years ago
Hi Robert,
I subsidised my holiday home by sub-letting when I didn’t need it and did everything via Holiday Lettings. They provide the contract and everything you could need. I had good tenants through them as well.
Good luck and kind regards
Linda