keyhole kate Posted July 26, 2014 Share Posted July 26, 2014 we have just paid off our mortgage and also have a mortgage free local rental property on long term rent with a good rental return however I am thinking of selling the rental property and investing the money in a holiday let property where the peak weekly rent is equal to what I currently get pcm there is also very little out of season for this popular seaside town we are looking at this as a future retirement foot on the property ladder when we will have our main homes value to also add to the pot. Does anyone have experience of the holiday let market which common sense tells me is going to be very different to the perfect tenant, very little outgoing expenses I currently have Quote Link to comment Share on other sites More sharing options...
Daphne Posted July 26, 2014 Share Posted July 26, 2014 I'm going to be a bit vague here as I don't know the details offhand, but I believe the tax treatment for furnished holidays lettings and 'normal' 6 month AST lets is different. It also occurs to me that in the era of TripAdvisor etc and instant feedback beamed to millions, you will have to really keep on top of replacing things that get worn out/shabby etc, so upkeep could be a bit pricey. Also, I don't know if you will do the changeovers, but there will be a cost there. At the end of it, I guess it will boil down to peace of mind and lower rental vs high income but more uncertainty Quote Link to comment Share on other sites More sharing options...
soapdragon Posted July 26, 2014 Share Posted July 26, 2014 Another aspect of the holiday rental market is that you will need a reliable and trustworthy person to do the changeovers, cleaning and generally keeping an eye on things. Also there is marketing to think about unless you go with an agency in which case you will have to pay them a proportion of the weekly rental. You would probably need a budget for repairs and renewals too as some people don't seem to take care of others belongings/property as they would their own!! Sorry, have re read this and it sounds a bit neg but food for thought? Quote Link to comment Share on other sites More sharing options...
keyhole kate Posted July 26, 2014 Author Share Posted July 26, 2014 Another aspect of the holiday rental market is that you will need a reliable and trustworthy person to do the changeovers, cleaning and generally keeping an eye on things. Also there is marketing to think about unless you go with an agency in which case you will have to pay them a proportion of the weekly rental. You would probably need a budget for repairs and renewals too as some people don't seem to take care of others belongings/property as they would their own!! Sorry, have re read this and it sounds a bit neg but food for thought? No not negative at all just what I am after others thoughts and points of view good or bad all much appreciated Daphne the Tax element was one I hadn't even considered so thank you Quote Link to comment Share on other sites More sharing options...
CatieB Posted July 26, 2014 Share Posted July 26, 2014 I know this has been touched on but you may be shocked at how others leave holiday places. Stealing things is not uncommon and although not quite the same my sis as a centre parcs cleaner could tell you some UNBELIEVABLE stories about what she would find. I put that in capitals as I used to literally ask her really how can people think its ok to do that??? Sanitary products in all manner of places and once she found a kitchen with every single item used and not washed up as if you had walked in after cooking - pots half full, food all over the side and cooker etc etc. Some people have a different mentality when on holiday. Sorry that sounds all doom and gloom and I am sure there are lots of good stories. As long as you factor in the additional up keep, cleaning and handover costs for emergencies, you will be fine. Quote Link to comment Share on other sites More sharing options...
Eggasperated Posted July 26, 2014 Share Posted July 26, 2014 I don't know anything about owning a holiday let but I've stayed in loads of cottages and would never dream of leaving one in anything but as clean and tidy condition as I found it. Quote Link to comment Share on other sites More sharing options...
keyhole kate Posted July 26, 2014 Author Share Posted July 26, 2014 I don't know anything about owning a holiday let but I've stayed in loads of cottages and would never dream of leaving one in anything but as clean and tidy condition as I found it. Me either however nothing surprises me anymore We don't rent out our static caravan as a business even though in peak season we could get £750 a week and £400 off peak and there are a lot of weeks it goes unused as we like it to be available for us and family at the drop of a hat. We do allow our children now adults take there friends and from that some of them have asked to rent it for weekends and such like but we have never found it less than immaculate thankfully, but I guess it makes a difference as others have said when you know its like someone's second home as opposed to a business. Quote Link to comment Share on other sites More sharing options...
soapdragon Posted July 26, 2014 Share Posted July 26, 2014 For over 28 years all our hols have been in self catering in the UK and Ireland (apart from two Egypt stays when we were flush - now a dim and distant memory ) Therefore I do feel something of a self catering anorak!!! Whilst there were some memorable places that we left much cleaner than we found most were wonderful...the best ones were the ones where the owners stayed too (which you clearly plan to do) and so were not just 'money making enterprises'. Most agencies will ask for a security deposit which is returned after the tenants hol providing all was left in good order. But, if extra cleaning/replacements are required then it is forefeit - worth thinking about if you decide to rent privately. It does seem that a reliable local housekeeper is very important if you will not be able to manage each 'turnaround' personally so it may be worth investigating possibilities along with properties? Some solicitors allow a free consultation of half an hour or so so it might be worth booking one of these to get the 'heads up' on the legalities whilst you are looking? Good luck...where are you thinking of buying? Quote Link to comment Share on other sites More sharing options...
keyhole kate Posted July 26, 2014 Author Share Posted July 26, 2014 soapdragon Its Wells-next-the-sea North Norfolk where currently beach huts sell for £60K Quote Link to comment Share on other sites More sharing options...
soapdragon Posted July 27, 2014 Share Posted July 27, 2014 Not an area that we know but sounds like a very good investment. They must be VERY posh beach huts Quote Link to comment Share on other sites More sharing options...
chickencam Posted July 27, 2014 Share Posted July 27, 2014 We are another family who like to leave a holiday cottage in the same state that we found and have left some places in better condition. We were once staying in a static caravan and the people in the one next door just left on departure day leaving loads of food out and the dishes unwashed, I can't people that people can do that. We once had a call from the owner of a cottage to thank us for the nice clean state in which we had left it, they went in on the Saturday to stay themselves and were pleased not to have to clean it and said that family members had left it in a worse state. We have often thought about buying a holiday property but have been put off by the upkeep and maintenance. Quote Link to comment Share on other sites More sharing options...
sadietoo Posted July 27, 2014 Share Posted July 27, 2014 As vegetarians we find it easier to take a rental property both in the uk and abroad and we have stayed in some lovely properties and some which were not so great. Usually only the small things spoil the stay. For example our last rental in France had only one well worn chopping board by far the loveliest property we have stayed in recently was a Duchy of Cornwall cottage. Everything positively gleamed when we came through the door and Molten Brown toiletries. Bliss! I'm not suggesting that you want the expense but I'm tempted to say that if you charge top dollar you may get a better tenant. Personally I would not dream of leaving a rental property in a bad state and am always happy to pay a deposit refundable after I leave . There are different tax rules relaying to holiday lets but probably nothing too significant unless you have a large portfolio ! Basically holiday lets can be treated as a business ( subject to the no of days let) whereas a let property is treated as an investment. Quote Link to comment Share on other sites More sharing options...
keyhole kate Posted July 27, 2014 Author Share Posted July 27, 2014 Not an area that we know but sounds like a very good investment. They must be VERY posh beach huts Honestly soapdragon there's nothing posh about them at all there simply a shed on stilts you can't stay in them overnight they don't have running water I think its more of a status thing. I guess to some folk £60k is a drop in the ocean there's not as queer as folk my mum used to say Quote Link to comment Share on other sites More sharing options...
keyhole kate Posted July 27, 2014 Author Share Posted July 27, 2014 Thank you so much to everyone who has taken the time to comment I would like to think the majority of holiday renters are like us I left our caravan today immaculate I'm talking old toothbrush and vinegar round the shower cabinet cracks and crevices and the next person there is me My old next door neighbour used to say its easy to be dirty but you have to work hard to be clean There is nothing currently in the price range we want to invest in and summer and is not the time to buy we will continue to watch the market there whilst carrying on saving and renting out here until the right investment property comes along. We do think there are more positives than negatives and it is an exceptional investment area so Watch this space Quote Link to comment Share on other sites More sharing options...
Pearls007 Posted August 3, 2014 Share Posted August 3, 2014 It's slightly different - but I rent out our granny annexe as a holiday let as we don't have a granny who wants to live in it! I find that the vast majority of people leave the flat as I would expect to find it. As it is part of our home and we are around and get to chat to our guests that probably helps. We have had some lovely people stay from all over the world (and this is in under a year). Our current guests are from Germany and the next ones from Malta, the last couple were from New Zealand. I would point out that the flat is always much cleaner and tidier than the main house........ www.holidaylettings.co.uk/544924 Quote Link to comment Share on other sites More sharing options...
Grandmashazzie Posted August 3, 2014 Share Posted August 3, 2014 Just a query is it the best investment for your money??We bought our sons house as he wanted to move closer to us,think two scrumptious grandchildren who now live three streets away.He couldn't sell so OH cashed in some investments and bought it.It has been rented out for past two years for what I thought would be a good return plus we still have house.But no OH says he has lost quite a lot,and the money would have made more invested.Since the market has picked up we are now trying to sell. Quote Link to comment Share on other sites More sharing options...
