4 Things to Know Before You Start Renting Out Your Holiday Home
When renting out your holiday home for the first time, it’s important you do everything properly so you don’t get in trouble, and you can rent it out again in the future. We’ve compiled a list of 4 things to know before you become a landlord for the first time.
1. Make sure it’s legal – otherwise there’s no point.
Disgruntled neighbours may inform the local council/police of illegal units, or if there’s ever an incident where you may try to claim from your insurance company, they may not pay your claim. It also certainly will not cover your tenants possessions, and you may have a lawsuit from them on your hands.
2. You probably won’t pocket the entire rent.
Money you earn through renting out your holiday home is taxable and there are expenses. On average, plan to spend the equivalent of a couple of months rent every year on maintaining the home, and upkeep of the general property (painting, cleaning, refurbishing, replacing broken equipment) as it will be used a lot, and by a range of different people.
3. You need to be on-hand and on-call almost 24/7.
To be seen as a reliable landlord, and so you can potentially have customers return and rent again, you need to be on hand. If something is broken & needs fixing, or if there’s an issue with the property itself, you need to be there, or have someone come out almost immediately.
Your tenants are there to enjoy themselves, and a broken toilet is not only a potential dampener on their trip, it’s a health and safety hazard if it leaks. Being able to get to the damaged item almost as soon as it’s been reported will give you a gold star from the customer’s perspective, as no one wants to be left waiting unable to use the bathroom.
4. Being a holiday home landlord isn’t a lottery win – it’s a part time job.
Although it can be very rewarding, you still need to put the hours in and do the job right. If you’re seen as the perfect person to rent off, not only will your tenants consider returning, they’ll probably recommend you to a friend, which means more customers, but also more time maintaining the property.