If you have looked at other parts of my site, you will see that one of my income streams comes from letting out a lovely holiday lodge on the South coast, at Mudeford near Christchurch.
I love my holiday home – not only because I can have free holidays in the area that I love best in all the world, whenever i like, but also because I make a small income on the side from it
Investing your money in a holiday home is a good way to start making money. Holiday homes work similarly to standard rental properties, but the main difference is in who will occupy them. Instead of tenants seeking a place to live for months or years, you have holidaymakers who need somewhere to stay for a few days.
If you have always fancied having a holiday home for yourself or for rent, then here are a few tips to consider before you get started:
Invest in a profitable location
Don’t buy a property in the middle of nowhere and expect to make money from it. Even if you like peace and quiet and away from it all holidays, you are more likely to make good rental money in an area that is popular with tourists – somewhere like some parts of France.
In France, you can invest in a property and turn it into something called a Conciergerie Airbnb. This roughly translates into a managed Airbnb, which means you get money from tourists and a separate company manages the property for you. Other locations that are good for holiday homes include:
- New York
Most European cities are profitable locations because they attract scores of travellers in all seasons, year after year. The bottom line is that you should choose a property in a place where you know there will be plenty of tourists looking for places to stay.
Provide plenty of amenities
To make money, you need to attract people to your property. One smart way to do this is by providing lots of different amenities for your guests. Here are a few things you could consider:
- Free Wifi
- Washing machine
- Coffee machine
- Air con
The list can go on and on, but the point is that you provide them with things that make their visit as enjoyable as possible. People like to stay in places where they know they’re getting good value for money.
Amenities are the easiest way to show them that they get plenty of bang for their buck, which tempts people to choose your holiday home over a hotel or somewhere else.
Adjust the price during peak seasons
A clear difference between holiday homes and standard rental properties is that the fees you charge can fluctuate throughout the year. Essentially, it’s based on demand. When the demand is high – during peak holiday seasons – then the price of holiday homes and hotels will go up.
This is purely because there will be a finite number of place for people to stay, and loads of tourists trying to book rooms. So, raising prices helps cope with this demand.
As a parent, you probably hate the idea that all hotels and residences double their prices in the school holidays and so do I, but as a holiday home owner, you really have to play the game and charge what the other local people are charging.
It may sound like a good idea to keep your rates low, so more people might be interested in you. But, the fact is that there will be so many tourists during peak season that you will just miss out on extra money. Also if people see your rental is significantly cheaper than others in the area they may conclude yours is poorer quality, and stay away.
So there are some tips to getting started with holiday rentals. If you like to holiday in the UK then please check out my property, and if you have any more questions about holiday home ownership, particularly in the UK, please feel free to contact me. I can point you in the right direction to get started.