5 Tips for Letting Out Your Holiday Home
At Perfect Weekends we’re always here to help small or first-time landlords. It’s not an easy business to get into, and with the cost of a new house any mistakes can have huge consequences. These tips will help you get a firm start and keep everything running smoothly.
- Use the right mortgage.
If you’re letting the property as a holiday home, you’re going to need a basic mortgage. While buy-to-let or second residential mortgages might seem to make more sense, financial advisers will tell you that these often come with clauses that specifically exclude holiday homes.
- Get the taxes sorted
HMRC will need to know that you plan to let your holiday home, as you may well need to pay income tax on it. You need to report any rental income above £2,500 in your self-assessment tax return. You should still notify the Self-Assessment helpline if your income is less than this, or if you own a rental company you must declare it as a business income.
- Choose your property carefully.
This one is a no-brainer, but make sure you sit back and think about the property you’re thinking about buying – make sure it’s somewhere you enjoy going on holiday, that it has local attractions, nice scenery or a pleasant quirk that makes it desirable. Never buy a holiday home somewhere you wouldn’t want to stay yourself.
- Build an online presence.
A necessary element in any interaction is building a good online presence. A well built, well optimised website will really give your property that professional touch – even if you only own one house, a site with pictures, testimonies from customers and lots of information will be a huge draw. Get your property up on rentals listing sites if possible as well, and create a profile for it on sites like TripAdviser yourself – you won’t be able to manage reviews, but you will be able to make it look as good as possible. Consider going with a larger company like AirBnB.
- Screen your guests, have house rules.
People are naturally messy, but some people take it above and beyond. Set rules for your house and enforce them, and make sure you know who you’re getting when you rent out the property – screen them online if necessary. After all, the house is yours, which means you get to set what is and isn’t acceptable. Don’t be over the top with the rules (banning alcohol and smoking, for example, seems like a good idea but may turn off guests – instead, provide a smoking area in the garden and pick responsible drinkers) but make sure guests won’t trash the place.