Holiday home advice.
Discussion
So, does anyone rent out holiday homes and if you do can you advise.
Background.
In the summer of 2019, we bought a Victorian property in Staffordshire for the sole purpose of me living in it during the week. I was renting a room.out from Jan 2020 to June 2020 which paid the utility bills.
The issue is that it's currently a white elephant. We are going to visit for the first time this week, since Christmas, to check on it and if needed I will have all my tools in the boot.
I'm working from home, and potentially this might end up being 2 days a month in the office. Maybe 2 days every other week. Maybe every week for one day. No sure. But needs to be greater than never.
So it might be that we can plan when we need it and when we don't need it.
It's in Uttoxeter, on a main road, with limited parking, although it's not impossible to park within 2 mins walk for free.
It's got a quirky layout. But has curb appeal.
Whilst I understand Uttoxeter is not where many people would choose to go on holiday, it is well placed between Alton Towers, Cannck Chase, the racecourse, the Derbyshire Dales, the Staffordshire Moorlands and the Potteries of Stoke. Lots of industrial History.
And not far from the station.
The town is small but vibrant (pre-covid)
The house itself has a large kitchen with a range style cooker, a log burning stove, a very seculed patio, 2 bathrooms (one with roll top bath), 2 large bedrooms and a second lounge upstairs with a Juliet balcony looking out onto the patio. Although the surveyor refered to this room as a landing. Because you walk through it to get to the top floor.
The stairs are very tight and steep. But that's 1848 for you.
The 2 bed rooms are big enough for family rooms. Both lounges could take a sofa bed.
Arguably it would be perfect for 2 families for a long weekend or midweek break. Although the outside space might get a bit tight.
There is a similar house on Airbnb
https://www.airbnb.co.uk/rooms/36134492?guests=1&a...
£130 a night plus cleaning and fees.
So that's the total extent of my research.
We are 1.5 hours away so would have to pay someone to clean it, between lets.
I'm thinking it could be available 365 days, realistically it's the school holidays from Easter to Autumn half term, for fulll weeks and weekends inbetween.
I guess and it is a guess, that it could make about 10 to 15k max, but would pay the utilities and bills at £4k, or pay the interest as well on the current mortgage at £3K but we have the opportunity to pay off the mortgage potentially next year (should we choose to) so let's work on £5k
Man maths says that I should factor in making.alternative arrangements for accomodation if I can't use it and need to visit the area for work.
With 5k at say £100 per night that's 50 nights. Or 7 weeks.
The HMRC minimum from a capital gains tax point of view is available for 210 nights and occupied for 105 nights.
So what do we think?
Background.
In the summer of 2019, we bought a Victorian property in Staffordshire for the sole purpose of me living in it during the week. I was renting a room.out from Jan 2020 to June 2020 which paid the utility bills.
The issue is that it's currently a white elephant. We are going to visit for the first time this week, since Christmas, to check on it and if needed I will have all my tools in the boot.
I'm working from home, and potentially this might end up being 2 days a month in the office. Maybe 2 days every other week. Maybe every week for one day. No sure. But needs to be greater than never.
So it might be that we can plan when we need it and when we don't need it.
It's in Uttoxeter, on a main road, with limited parking, although it's not impossible to park within 2 mins walk for free.
It's got a quirky layout. But has curb appeal.
Whilst I understand Uttoxeter is not where many people would choose to go on holiday, it is well placed between Alton Towers, Cannck Chase, the racecourse, the Derbyshire Dales, the Staffordshire Moorlands and the Potteries of Stoke. Lots of industrial History.
And not far from the station.
The town is small but vibrant (pre-covid)
The house itself has a large kitchen with a range style cooker, a log burning stove, a very seculed patio, 2 bathrooms (one with roll top bath), 2 large bedrooms and a second lounge upstairs with a Juliet balcony looking out onto the patio. Although the surveyor refered to this room as a landing. Because you walk through it to get to the top floor.
The stairs are very tight and steep. But that's 1848 for you.
The 2 bed rooms are big enough for family rooms. Both lounges could take a sofa bed.
Arguably it would be perfect for 2 families for a long weekend or midweek break. Although the outside space might get a bit tight.
There is a similar house on Airbnb
https://www.airbnb.co.uk/rooms/36134492?guests=1&a...
£130 a night plus cleaning and fees.
So that's the total extent of my research.
We are 1.5 hours away so would have to pay someone to clean it, between lets.
I'm thinking it could be available 365 days, realistically it's the school holidays from Easter to Autumn half term, for fulll weeks and weekends inbetween.
I guess and it is a guess, that it could make about 10 to 15k max, but would pay the utilities and bills at £4k, or pay the interest as well on the current mortgage at £3K but we have the opportunity to pay off the mortgage potentially next year (should we choose to) so let's work on £5k
Man maths says that I should factor in making.alternative arrangements for accomodation if I can't use it and need to visit the area for work.
With 5k at say £100 per night that's 50 nights. Or 7 weeks.
The HMRC minimum from a capital gains tax point of view is available for 210 nights and occupied for 105 nights.
So what do we think?
I generally agree with the others. From how you describe it you'd be trying to take something that isn't good for holiday rentals and trying to force it to be.
Having families in holiday rentals is high wear and tear and with the property not being right you'll have to discount it so you're looking at below average income with above average costs. And then on top of that it's not like you set out to be a holiday let landlord with all the gusto and goodwill. Frankly you seem to describe something that is going to drain money from you every month while you watch it deteriorate as it gets consumed by discount holiday families.
With the market being artificially inflated would it not be the greatest window of opportunity to get rid as it is an object that no longer serves any purpose to you.
Having families in holiday rentals is high wear and tear and with the property not being right you'll have to discount it so you're looking at below average income with above average costs. And then on top of that it's not like you set out to be a holiday let landlord with all the gusto and goodwill. Frankly you seem to describe something that is going to drain money from you every month while you watch it deteriorate as it gets consumed by discount holiday families.
With the market being artificially inflated would it not be the greatest window of opportunity to get rid as it is an object that no longer serves any purpose to you.
That is just the objective view that I needed.
Thanks.
Alot of this is not wanting to admit that we used our heart not our heads when we bought it.
All my contract work for 11 years had been in either Derby, or Stoke or Wolverhampton.
I usually spent about £350 on digs a month, so if the interest was £200, and I took on a lodger, paying £350, the costs were covered.
The mortgage repayments are an investment in that when we sell it, we get it back.
I thought we would be able to get contractor Monday to Friday working at JCB or Rolls Royce. It too far for Derby, and there was no demand for Monday to Friday
So we had a great lodger but 7 days.
The best thing has being having a bolt hole to go to at weekends, once the lodger moved out last summer.
Thanks.
Alot of this is not wanting to admit that we used our heart not our heads when we bought it.
All my contract work for 11 years had been in either Derby, or Stoke or Wolverhampton.
I usually spent about £350 on digs a month, so if the interest was £200, and I took on a lodger, paying £350, the costs were covered.
The mortgage repayments are an investment in that when we sell it, we get it back.
I thought we would be able to get contractor Monday to Friday working at JCB or Rolls Royce. It too far for Derby, and there was no demand for Monday to Friday
So we had a great lodger but 7 days.
The best thing has being having a bolt hole to go to at weekends, once the lodger moved out last summer.
GT03ROB said:
I'm not altogether sure what the question is you are asking hence why you haven't had any response.
Maybe if you have some specific questions you can get some decent responses as there are people on here with Holiday lettings, myself included
I've given a lot of information, which may or may not be relevant. Maybe if you have some specific questions you can get some decent responses as there are people on here with Holiday lettings, myself included
I basically want to know if it's feasible, and what are the downsides, real life issues.
Will I get bookings?
Given the costs of cottages near a beach, are people going to come to an area for a much lower price.
There is enough attractions within 30mins drive, to keep you busy for a few weeks.
The local town has enough restaurant and pubs snd shops.
How should I support it, with urgent maintenance issues, cleaning between rentals. Etc
Would I use Airbnb or other platform?
How much should I budget for the costs of this?
Obviously the other options will be looked at.
Include
Sell,
Rent out on AST
Rent out a room to lodger
Do B and B When there is horse racing on
Do nothing. Just use it as and when I have to visit the area. And use it for escaping ourselves.
And finally, sell up in Merseyside and move permanently.
A bit like Isaac, I also have 5 properties all on the beach in North Devon (some owned, some managed for others).
We are booked out 365 days a year on some, others sit about 250 days, but all are ridiculously busy, and demand outstrips supply most of the year.
Key being the location, and the calibre of the properties, this is a huge holiday area, from easter till October its ram packed, festivals, beaches, fish and chips and great pubs. All 5 we manage are also top end properties, spotless, modern, clean, tidy and a little "funky", one is a treehouse, one has a hottub, one is IN the sea etc etc.
I wish you all the luck, its a great game to be in, a little stressful at times, but I think the location is what you need to look at, there is a reason they say location location location!
you need to decide if you are aiming on the holiday crowd, or people working, and market it/decorate it accordingly.
We are booked out 365 days a year on some, others sit about 250 days, but all are ridiculously busy, and demand outstrips supply most of the year.
Key being the location, and the calibre of the properties, this is a huge holiday area, from easter till October its ram packed, festivals, beaches, fish and chips and great pubs. All 5 we manage are also top end properties, spotless, modern, clean, tidy and a little "funky", one is a treehouse, one has a hottub, one is IN the sea etc etc.
I wish you all the luck, its a great game to be in, a little stressful at times, but I think the location is what you need to look at, there is a reason they say location location location!
you need to decide if you are aiming on the holiday crowd, or people working, and market it/decorate it accordingly.
Pit Pony said:
I've given a lot of information, which may or may not be relevant.
I basically want to know if it's feasible, and what are the downsides, real life issues.
Will I get bookings?
You will always get bookings the question is whether it will be enough to make the effort worthwhile.I basically want to know if it's feasible, and what are the downsides, real life issues.
Will I get bookings?
You will get booking from other than holidaymakers. For example we have had a number of lets, out of season from people who had need of short term furnished accommodation, for maybe a couple of months. these have been between house moves or in the most recent case where they had extensive water damage at home & needed somewhere while it was fixed.
Pit Pony said:
Given the costs of cottages near a beach, are people going to come to an area for a much lower price.
There is enough attractions within 30mins drive, to keep you busy for a few weeks.
The local town has enough restaurant and pubs snd shops.
Search for similar properties in your area advertised as holiday lets, see what sort of occupancies they run. See if you can find a holiday letting company that covers your areas & ask them for advice. Check pubs & guest houses that offer accommodation & see what their occupanices are like. If you find one thats always busy & full ask then if they consider turning people your way.There is enough attractions within 30mins drive, to keep you busy for a few weeks.
The local town has enough restaurant and pubs snd shops.
Pit Pony said:
How should I support it, with urgent maintenance issues, cleaning between rentals. Etc
You need captive tradesmen that will come out on a Friday evening. Things always go wrong on a Friday evening just after a new guest has checked in! For cleaning between rentals, you booking agent may be able to handle that for you. Company we used offered that as a service. If you get your own cleaners in, they need to be 100% reliable. They may only have a narrow time slot between guests & there will be a lot to do. For this reason also don't look to rent out for single nights the costs are high in terms of turarounds (cleaning, fresh bed linen, fresh towels, etc.)Pit Pony said:
Would I use Airbnb or other platform?
How much should I budget for the costs of this?
We didn't use AirBnB, but a specialised letting agent for the area that came up high on google searches. They handle everything, processing payments, taking bookings, etc., I think their fee is 18% if I recall properly. What I also did was set up a page on Facebook to push people to that site. That was quite successful & got quite a few bookings that way. How much should I budget for the costs of this?
Pit Pony said:
Obviously the other options will be looked at.
Include
Sell,
Rent out on AST
Rent out a room to lodger
Do B and B When there is horse racing on
Do nothing. Just use it as and when I have to visit the area. And use it for escaping ourselves.
And finally, sell up in Merseyside and move permanently.
Whilst we get decent occupancy, unless you are in a goldmine location, normal rental is a better option. Include
Sell,
Rent out on AST
Rent out a room to lodger
Do B and B When there is horse racing on
Do nothing. Just use it as and when I have to visit the area. And use it for escaping ourselves.
And finally, sell up in Merseyside and move permanently.
Wear & tear on furniture/electrical goods/crockery/carpets/etc is high. You are still picking us insurance, gas, water, electric, phone, broadband costs. Electric/gas/water bills will be higher than you expect. You should however be able to get small business relief on the council tax. The income tax treatment is different as a holiday let as well
Phonecalls on a Friday evening because somebody can't work out the heating or had stuffed nappies down the bog & blocked it are a pain.
It's really not a goldmine!
sidekickdmr said:
A bit like Isaac, I also have 5 properties all on the beach in North Devon (some owned, some managed for others).
We are booked out 365 days a year on some, others sit about 250 days, but all are ridiculously busy, and demand outstrips supply most of the year.
Key being the location, and the calibre of the properties, this is a huge holiday area, from easter till October its ram packed, festivals, beaches, fish and chips and great pubs. All 5 we manage are also top end properties, spotless, modern, clean, tidy and a little "funky", one is a treehouse, one has a hottub, one is IN the sea etc etc.
I wish you all the luck, its a great game to be in, a little stressful at times, but I think the location is what you need to look at, there is a reason they say location location location!
you need to decide if you are aiming on the holiday crowd, or people working, and market it/decorate it accordingly.
How is it possible to rent out for 365 days a year on a holiday let basis?We are booked out 365 days a year on some, others sit about 250 days, but all are ridiculously busy, and demand outstrips supply most of the year.
Key being the location, and the calibre of the properties, this is a huge holiday area, from easter till October its ram packed, festivals, beaches, fish and chips and great pubs. All 5 we manage are also top end properties, spotless, modern, clean, tidy and a little "funky", one is a treehouse, one has a hottub, one is IN the sea etc etc.
I wish you all the luck, its a great game to be in, a little stressful at times, but I think the location is what you need to look at, there is a reason they say location location location!
you need to decide if you are aiming on the holiday crowd, or people working, and market it/decorate it accordingly.
Get someone in from a letting agency.
I used Sykes Cottages and they have extensive statistics of comparable properties and can give you an accurate forecast of how a property in that area will perform. They will also assess the suitability and marketability of your property.
If the forecast of revenue stacks up then you need to take into account other costs:
Cleaning / local person to welcome / sort handovers
Laundry
Utility bills
Maintenance
Don't underestimate costs of furnishing and equipping the cottage to an appropriate standard. (We bought premium bedding which cost close to £1,000 for the amount needed to cope with the possibilities of short breaks).
Commissions can be as high as 22%+ VAT
My property (bit.ly/treaclecottage) is very much on the edge of the Cotswolds - like yours is on the edge of the Peak District.
When it is available it tends to get booked up completely between March - October and then at Christmas / New Year. December / Jan / Feb it is empty.
Being only a one bed our cottage tends to be booked by retired folk and so schools holidays have little influence on occupancy.
They also tend to look after the property and some even clean it before leaving. Breakages and maintenance due to them has been minimal.
The only people who did damage the property were some decorators who used it as a crash pad when working locally and they covered the electric radiators which caused damage to the radiator and plasterboard above the radiator - they have yet to get the bill for repairs.
Maintenance has cost me a LOT this year due to poor quality work by the builder who refurbished this property originally.
You may be subject to business rates if you run this as a business, but small business rate relief may apply.
We have been cleaning this property ourselves, but need to find someone to do it for us this year. Quotes have varied between £30 and £80 (inc laundry) which is very high. Profitability would be marginal if we had to pay £80.
I think renting this property out as a long term let would be equally profitable but I appreciate the option to use it for friends and family. There as also tax advantages re: mortgage interest.
I used Sykes Cottages and they have extensive statistics of comparable properties and can give you an accurate forecast of how a property in that area will perform. They will also assess the suitability and marketability of your property.
If the forecast of revenue stacks up then you need to take into account other costs:
Cleaning / local person to welcome / sort handovers
Laundry
Utility bills
Maintenance
Don't underestimate costs of furnishing and equipping the cottage to an appropriate standard. (We bought premium bedding which cost close to £1,000 for the amount needed to cope with the possibilities of short breaks).
Commissions can be as high as 22%+ VAT
My property (bit.ly/treaclecottage) is very much on the edge of the Cotswolds - like yours is on the edge of the Peak District.
When it is available it tends to get booked up completely between March - October and then at Christmas / New Year. December / Jan / Feb it is empty.
Being only a one bed our cottage tends to be booked by retired folk and so schools holidays have little influence on occupancy.
They also tend to look after the property and some even clean it before leaving. Breakages and maintenance due to them has been minimal.
The only people who did damage the property were some decorators who used it as a crash pad when working locally and they covered the electric radiators which caused damage to the radiator and plasterboard above the radiator - they have yet to get the bill for repairs.
Maintenance has cost me a LOT this year due to poor quality work by the builder who refurbished this property originally.
You may be subject to business rates if you run this as a business, but small business rate relief may apply.
We have been cleaning this property ourselves, but need to find someone to do it for us this year. Quotes have varied between £30 and £80 (inc laundry) which is very high. Profitability would be marginal if we had to pay £80.
I think renting this property out as a long term let would be equally profitable but I appreciate the option to use it for friends and family. There as also tax advantages re: mortgage interest.
Edited by rlg43p on Friday 26th March 12:53
sidekickdmr said:
Taylor James said:
How is it possible to rent out for 365 days a year on a holiday let basis?
Why wouldn't it be? Ok I tell a bit of a lie, we close for 1 week for maintenance in January and my parents stayed once, so 356 days.
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