Property Purchase for Holiday Let

Short term letting, over holidays and peak season times, is becoming a popular way to make money. You may have heard some people say that three good months are enough for them to pay the year’s mortgage. This may be true of some properties, but not of all, so make sure that you select your property with care if you intend to let it out during the holidays. While a good property can provide you with a much needed investment property pension in terms of both lucrative rent and a property asset.

Some tips for success in the holiday rentals market:

1) Competitive pricing – assess the value of your property by comparing it to other similar places in the area and keep the rent competitive in the marketplace. Remember that your property may be great but you have to make it attractive to beat you competition and without compromising your profit.

2) Try to find a property with a great USP – a special view is always popular. A place with a view will command a premium. Proximity to the beach or to local attractions is always a money maker. Think of the main reason that tourists frequent your selected region or country – is it for the great nightlife? Then try to find a good place near the bars or nightclubs.

3) Décor – decorate your place tastefully within your budget. Everyone wants to stay in an aesthetic accommodation, particularly while on holiday. You may find yourself asked to provide pictures of the property, indoors and out, so make it as attractive and commodious as possible.

4) Agent – chances are that you do not live in the same area as your holiday rental. It may then be useful to hire a local agent to handle the administrative tasks, as well as provide a point of contact for the guests.

5) Research – do your homework thoroughly to ensure that you are not being defrauded. Visit the site personally and oversee all paperwork. Do not rely on a local property agent completely.

6) Local regulations – make sure that you adhere to local rules for renting your property. For instance, in France, you will be asked to provide a written agreement between the landlord and the tenant. There may be rules regarding renters insurance as well.

7) Insurance – Make sure that your insurance company knows that the property will be used as a holiday let when you sign the agreement. There must not be any clauses prohibiting it.

8) Taxes – find out about your home country taxes on owning holiday rental properties and how the rental income will be treated. It’s wise to ascertain local rules as well to that effect. Know whether the property will be treated as commercial and how much tax liability it will attract.

9) Rental payments – make sure you work out how and when you will receive the rent payments, especially if your property is overseas.

10) Remember that to make money, you need to resist the temptation to stay in your own property during the holidays.

That said, there is still plenty of money to be made off the holiday rental market if you choose the right property and handle the administration effectively. Always get good advice and carry out your own research before proceeding.