Holiday Letting
Discussion
I'm just after some pointers / opinions on running a holiday let...
I notice there's a VERY similar subject thread here too, I'm slightly different in that I have already decided that the property I have is far more suitable for holiday letting than regular renting; it's a tiny seaside cottage which would make a brilliant little holiday let, a stone's throw from the beach, pubs, little chip shops etc. Plus, I would prefer to have it operational in bursts, so I can keep it in good nick between week-long, weekend or random days of letting.
My question is more to do with the mechanics of running a holiday let - obviously I will need to seek out appropriate insurance, get the place up to code regarding h+s and fire regs... etc.
I also intend to put suitable insurance in place and explore the (complex!) tax situation surrounding FHLs.
I know there are agencies that will do this for me, along with contracts, bookings etc... but I want to do it all myself.
I'm looking for advice or experiences from those in a similar situation, or who have, in the past, done similar.
I notice there's a VERY similar subject thread here too, I'm slightly different in that I have already decided that the property I have is far more suitable for holiday letting than regular renting; it's a tiny seaside cottage which would make a brilliant little holiday let, a stone's throw from the beach, pubs, little chip shops etc. Plus, I would prefer to have it operational in bursts, so I can keep it in good nick between week-long, weekend or random days of letting.
My question is more to do with the mechanics of running a holiday let - obviously I will need to seek out appropriate insurance, get the place up to code regarding h+s and fire regs... etc.
I also intend to put suitable insurance in place and explore the (complex!) tax situation surrounding FHLs.
I know there are agencies that will do this for me, along with contracts, bookings etc... but I want to do it all myself.
I'm looking for advice or experiences from those in a similar situation, or who have, in the past, done similar.
Sterillium said:
I know there are agencies that will do this for me, along with contracts, bookings etc... but I want to do it all myself.
Twice I have been in the position of looking to rent a holiday cottage, there's so many to look through that a privateer is going to have great difficulty in getting his place seen at all. I would say your other issues are just relatively straight forward tasks, getting your place in front of prospective customers is going to be the hard part and you need a strategy for that if you are going to do it on your own,I've had a holiday let since 2010, here's a few of the more practical issues I've found.
Kent Phil's post of the other thread is key. Unless you're doing the changeover yourself, someone competent and reliable to do it is the most important issue. It's not just cleaning and laundry, it's house presentation.
To make any money, bookings run back to back during the Summer. Will you be checking every changeover or trust the cleaner? You'll need a 'welcome pack' which will include perishables.
Guests leave @ 10am, new ones in @ 3pm. Friday works well for me. Short breaks are popular and cost @ 75% of a full week. For this reason I have 3 sets of linen.
Breakages/faults need fixing straightaway. Eg, if the fridge dies, you will need a replacement now, whether the old one is under warranty or not. I have a spare fridge.
Unless you're very local and reasonably capable, you'll need someone you can call out. Guests call out for silly things, like resetting a trip, even when there are instructions. People fluster in an unfamiliar environment, it's natural.
Where's the nearest tip? At some point, guests will leave you sacks of rubbish to get rid of (ditto, instructions).
People don't take care of things they way you would. The better the presentation the more care they take. But get into a too expensive price range and you risk the 'well, I've paid for it' attitude.
How many people does it sleep? My ideal was 2+2, + dining room + outdoor space. It sleeps 4, but is cheap enough for 2. I get as many couples as families, sometimes 2 couples. I recently gave up accepting children under 5 as there was always damage.
How accessible is it? It's unlikely you'll be able to make it wheelchair friendly so decent stair rails, non slip mat and handle in the bathroom as the bath's quite deep. I get a lot of older guests which helps fill your off peak periods - and they generally take care of the place.
Have a look at the competition, see what books, see what standards of presentation are like. Some places near mine are purely a hobby for the Mrs and property investment as they couldn't possibly make a profit on what's been spent.
Yes, marketing is key. Do you want more bookings via an agent and get less for each (commission can be 20% + VAT), or fewer and keep more? I'd suggest an experienced local agent for the first year. Not only can they advise you on what reg's you'l need to comply with, but also tell you what customers want. Checking the details, taking a deposit and making sure the money is paid is their problem. You can then offer guests a significant discount for repeat bookings done directly, once you've seen they haven't trashed the place.
You'll need annual PAT inspection and gas safety test. Fire extinguishers, fire retardant furnishings etc. Insurance is available, but costs more. Tax is self assessment.
Imho the best way to make any money is to have a property nearby or as part of your own property (annex etc), a local reliable cleaner rather than a company (though good ones do exist), and focus on repeat bookings.
Or buy somewhere where the property will increase in value and the 'added value' of somewhere to enjoy yourself is what you want.
There you go, a few thoughts in no particular order which I hope help your thinking.
.
Kent Phil's post of the other thread is key. Unless you're doing the changeover yourself, someone competent and reliable to do it is the most important issue. It's not just cleaning and laundry, it's house presentation.
To make any money, bookings run back to back during the Summer. Will you be checking every changeover or trust the cleaner? You'll need a 'welcome pack' which will include perishables.
Guests leave @ 10am, new ones in @ 3pm. Friday works well for me. Short breaks are popular and cost @ 75% of a full week. For this reason I have 3 sets of linen.
Breakages/faults need fixing straightaway. Eg, if the fridge dies, you will need a replacement now, whether the old one is under warranty or not. I have a spare fridge.
Unless you're very local and reasonably capable, you'll need someone you can call out. Guests call out for silly things, like resetting a trip, even when there are instructions. People fluster in an unfamiliar environment, it's natural.
Where's the nearest tip? At some point, guests will leave you sacks of rubbish to get rid of (ditto, instructions).
People don't take care of things they way you would. The better the presentation the more care they take. But get into a too expensive price range and you risk the 'well, I've paid for it' attitude.
How many people does it sleep? My ideal was 2+2, + dining room + outdoor space. It sleeps 4, but is cheap enough for 2. I get as many couples as families, sometimes 2 couples. I recently gave up accepting children under 5 as there was always damage.
How accessible is it? It's unlikely you'll be able to make it wheelchair friendly so decent stair rails, non slip mat and handle in the bathroom as the bath's quite deep. I get a lot of older guests which helps fill your off peak periods - and they generally take care of the place.
Have a look at the competition, see what books, see what standards of presentation are like. Some places near mine are purely a hobby for the Mrs and property investment as they couldn't possibly make a profit on what's been spent.
Yes, marketing is key. Do you want more bookings via an agent and get less for each (commission can be 20% + VAT), or fewer and keep more? I'd suggest an experienced local agent for the first year. Not only can they advise you on what reg's you'l need to comply with, but also tell you what customers want. Checking the details, taking a deposit and making sure the money is paid is their problem. You can then offer guests a significant discount for repeat bookings done directly, once you've seen they haven't trashed the place.
You'll need annual PAT inspection and gas safety test. Fire extinguishers, fire retardant furnishings etc. Insurance is available, but costs more. Tax is self assessment.
Imho the best way to make any money is to have a property nearby or as part of your own property (annex etc), a local reliable cleaner rather than a company (though good ones do exist), and focus on repeat bookings.
Or buy somewhere where the property will increase in value and the 'added value' of somewhere to enjoy yourself is what you want.
There you go, a few thoughts in no particular order which I hope help your thinking.
.
This is exactly the kind of advice and insight I wanted, thank you.
Sticks said:
To make any money, bookings run back to back during the Summer. Will you be checking every changeover or trust the cleaner? You'll need a 'welcome pack' which will include perishables.
I or the OH will do them all, we have the time and the inclination.Sticks said:
I have a spare fridge.
Good point. I would buy two of everything and keep the spares in my storage nearby.Sticks said:
Unless you're very local and reasonably capable, you'll need someone you can call out. Guests call out for silly things, like resetting a trip, even when there are instructions. People fluster in an unfamiliar environment, it's natural.
We are very local and very capable, this would be fine.Sticks said:
Where's the nearest tip? At some point, guests will leave you sacks of rubbish to get rid of (ditto, instructions).
Only about a mile away.Sticks said:
People don't take care of things they way you would. The better the presentation the more care they take. But get into a too expensive price range and you risk the 'well, I've paid for it' attitude.
This is where I was coming from... I want it to be pleasant, well-furnished, but as indestructible as possible, without reducing it to a concrete prison cell.Sticks said:
How many people does it sleep?
Two, or two and a kid, at a push. Sticks said:
How accessible is it?
Not very... it's in a winding-old-lane filled seaside village.Sticks said:
Have a look at the competition, see what books, see what standards of presentation are like.
There seems to be a lot, but it also seems they all do well, from lovely old hotels to quite cheap and unimpressive B&Bs.Sticks said:
You'll need annual PAT inspection and gas safety test. Fire extinguishers, fire retardant furnishings etc. Insurance is available, but costs more. Tax is self assessment.
This makes sense. Fire alarms too?Sticks said:
Imho the best way to make any money is to have a property nearby or as part of your own property (annex etc)
This is something I would also like to investigate... I have an attached building (currently a laundry, workshop and general storage barn) but it'd be something I would pump cash into later, when I had a feel for running the other holiday let for a few seasons.singlecoil said:
Twice I have been in the position of looking to rent a holiday cottage, there's so many to look through that a privateer is going to have great difficulty in getting his place seen at all. I would say your other issues are just relatively straight forward tasks, getting your place in front of prospective customers is going to be the hard part and you need a strategy for that if you are going to do it on your own,
Yes, I need to put some thought to this. I will easily be able to create a wonderful web page with beautiful photographs and details... but obviously I need to get people to find, and look at, the webpage!Sounds like a good set up, very hands on, with most of the negatives I've mentioned covered.
There are positives. I've got people coming from Australia this Autumn, their second visit. And a lady who's visited from German 7 or 8 times.
If you speak to a local agent about setting up they ought to be able to give you some info on minimum standards/requirements.
Yes, I forgot smoke alarms.
There are positives. I've got people coming from Australia this Autumn, their second visit. And a lady who's visited from German 7 or 8 times.
If you speak to a local agent about setting up they ought to be able to give you some info on minimum standards/requirements.
Yes, I forgot smoke alarms.
It is depending on how many days available for let.
For business rates in Lake district, SLDC actually check that you have the property advertised to allow business rates. (Can also be cheaper than council tax).
Does not matter where/how you advertise the property.
A good agent makes all the difference, trying to get your own website noticed amongst the dozens of agency companies who have huge budgets is a waste of time. A few years down the road though, and repeat bookings who come direct make a lot of difference.
For business rates in Lake district, SLDC actually check that you have the property advertised to allow business rates. (Can also be cheaper than council tax).
Does not matter where/how you advertise the property.
A good agent makes all the difference, trying to get your own website noticed amongst the dozens of agency companies who have huge budgets is a waste of time. A few years down the road though, and repeat bookings who come direct make a lot of difference.
Sticks. said:
isleofthorns said:
related question....
do days/nights letting a furnished property on sites like airbnb qualify towards the number of days you need to let a property in order to qualify as a fhl?
Iirc it's how many days it's available for let.do days/nights letting a furnished property on sites like airbnb qualify towards the number of days you need to let a property in order to qualify as a fhl?
GT03ROB said:
We started one at the end of May.
Main tip as a starter is get yourself a good agent. Started advertising through an agent end of May.... sold 2 weeks in June, 3 in July, sold out August through 3rd week of Sept. I cannot see anyway we could have achieved that ourselves.
What sort of a slice should I expect them to take?Main tip as a starter is get yourself a good agent. Started advertising through an agent end of May.... sold 2 weeks in June, 3 in July, sold out August through 3rd week of Sept. I cannot see anyway we could have achieved that ourselves.
The big guns like Wydhams will try to screw you for about 22% plus VAT at first, especially if you are just a "me too" holiday let.
You can get this down to 15% which is still a lot but with Wyndhams especially, they give a lot of leeway on private bookings beyond their fixed term. Not sure if it is deliberate on their part or they are so big that they miss the obvious but it means that you can turn 14 days private allocation in summer season into 7 weeks of private bookings.
Make your cottage easily searcheable online, don't charge the Wyndhams booking fee and you get the benefit of their marketing whilst limiting their heavy handed antics allowing both you and Wyndhams to get a fair share.
You can get this down to 15% which is still a lot but with Wyndhams especially, they give a lot of leeway on private bookings beyond their fixed term. Not sure if it is deliberate on their part or they are so big that they miss the obvious but it means that you can turn 14 days private allocation in summer season into 7 weeks of private bookings.
Make your cottage easily searcheable online, don't charge the Wyndhams booking fee and you get the benefit of their marketing whilst limiting their heavy handed antics allowing both you and Wyndhams to get a fair share.
Sterillium said:
GT03ROB said:
We started one at the end of May.
Main tip as a starter is get yourself a good agent. Started advertising through an agent end of May.... sold 2 weeks in June, 3 in July, sold out August through 3rd week of Sept. I cannot see anyway we could have achieved that ourselves.
What sort of a slice should I expect them to take?Main tip as a starter is get yourself a good agent. Started advertising through an agent end of May.... sold 2 weeks in June, 3 in July, sold out August through 3rd week of Sept. I cannot see anyway we could have achieved that ourselves.
Slice will also vary on what you want. I think their opening figure was around 20%
Pistom said:
It would be interesting to hear what occupancy people are achieving.
Based on what I've seen, you can look to be full from Summer half term through end September. Get 2-3 weeks over Easter, Spring & Autumn half terms & maybe Christmas. That would give you around 26wks. This is consistent with what agents have told us, though I know somebody who had a few on the same site & reckoned on 30-32wks per year. Depends on how aggressive you pursue sales in the off season.GT03ROB said:
Based on what I've seen, you can look to be full from Summer half term through end September. Get 2-3 weeks over Easter, Spring & Autumn half terms & maybe Christmas. That would give you around 26wks. This is consistent with what agents have told us, though I know somebody who had a few on the same site & reckoned on 30-32wks per year. Depends on how aggressive you pursue sales in the off season.
It also depends on other thins, such as what other reasons there are to visit than just the coast, say, and what price bracket you're in. A friend has one of the few single bedroom holiday lets in the area (he said) and is usually fully booked all year, being cheapest, probably. Mine's near the coast, but also has history, lots of eating places, walks, interesting/Christmas shopping, music and arts festivals and galleries etc. And I get extended families at Christmas and NY whose parents' place is too small and hotels too expensive (ditto wedding guests).
Reasons to visit outside of the typical seasonal holidays will also appeal to older people, who will often help fill off season periods.
Then again, another landlord tole me he gets 'walkers, drinkers, and shaggers'.
Sticks. said:
GT03ROB said:
Based on what I've seen, you can look to be full from Summer half term through end September. Get 2-3 weeks over Easter, Spring & Autumn half terms & maybe Christmas. That would give you around 26wks. This is consistent with what agents have told us, though I know somebody who had a few on the same site & reckoned on 30-32wks per year. Depends on how aggressive you pursue sales in the off season.
It also depends on other thins, such as what other reasons there are to visit than just the coast, say, and what price bracket you're in. A friend has one of the few single bedroom holiday lets in the area (he said) and is usually fully booked all year, being cheapest, probably. Mine's near the coast, but also has history, lots of eating places, walks, interesting/Christmas shopping, music and arts festivals and galleries etc. And I get extended families at Christmas and NY whose parents' place is too small and hotels too expensive (ditto wedding guests).
Reasons to visit outside of the typical seasonal holidays will also appeal to older people, who will often help fill off season periods.
Then again, another landlord tole me he gets 'walkers, drinkers, and shaggers'.
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