What To Look For In A Holiday Home Buy-To-Let
There’s been growing interest in buy-to-let holiday homes over the last few years and these represent an excellent way to expand your property portfolio, alongside more typical buy-to-let properties.
With standard buy-to-lets, you purchase a property to rent out to tenants who stay in the house for a minimum of six months on an assured tenancy agreement, but with holiday lets, you rent out the property to people visiting the area… so it’s important to make sure that you pick your destination wisely!
To help you find the right holiday let for you, here are some of the key considerations to bear in mind. If, as ever, you need any further help or advice, get in touch with the BR Needham team today.
Familiarise yourself with mortgages
Before you start house hunting, you need to work out the finances. You’ll likely need to take out a holiday home mortgage, which usually requires a deposit of between 25 per cent and 35 per cent… and be prepared to be faced with higher mortgage rates than you’d see for standard home purchases.
Some mortgage lenders may allow you to use the property yourself as a holiday home, which is also an important consideration to bear in mind.
Consider location
Naturally, one of the biggest factors for your holiday home is where it is. If you pick a destination that doesn’t see much tourism, you won’t be able to maximise your returns.
Tourist hotspots in the UK include Devon, the Lake District, Northumberland, the Cotswolds and the Yorkshire Dales – but don’t forget about the potential of short-stay lets in urban centres either.
Access is key
Making sure that your holiday let is well situated near to public transport links will help you market it more effectively, as you don’t want to put people off just because they don’t have a car.
Proximity to you
Don’t forget that holiday homes need to be maintained and looked after, so you don’t want to pick a location that’s hours away from where you live. You may end up regretting the distance when you have to drive hours to visit the property in between guests.
Check out the competition
Always take the time to review the local competition so you can make sure that the market isn’t saturated and that you’re not all fighting for the same holidaymakers.
Find flexible accommodation
Maximising your occupancy levels will help you drive returns your way, so you want to provide accommodation that’s as flexible as possible, with at least more than one bathroom, ideally an ensuite with one of the bedrooms, a ground-floor bedroom for access-friendly needs, dog-friendly spaces and secure areas, and so on.
WiFi is a must!
While there are many people out there keen to disconnect while away, you’ll find that you increase the chances of getting those bookings if you have a WiFi connection available. Don’t forget that people are increasingly working remotely these days, so offering them this opportunity will help drive bookings your way.
