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Articles:
Holiday let golden rules
JS
May 2007
We have put together a checklist for the many
concerns people have before beginning a holiday
letting business.
Location
Everyone has heard of the phrase 'location,
location location' and with a holiday letting
business such advice could not be more true.
Many people are aware of cottages and holiday
homes in places like
Devon, Poole and
Cornwall
but in such places it is important to remember
that many holiday letting businesses report
bookings which can be for as little as nineteen
weeks in the year. Interestingly, areas like
Cumbria which will be charged out for less
during peak seasons will normally be occupied
for more than thirty five weeks because of the
hundreds of people who enjoy a walking holiday
at different times of the year.
Finances
Enhanced Wealth is all about making the most of
your money. This will involve keeping on top of
your finances at all times. We will offer you
the best advice concerning
mortgages and finance
for your holiday let property. Some of our
clients let up to forty properties and we are
certain we help you manage your finances clearly
and professionally. Most importantly, with a
holiday letting business, many of your expenses
can be offset against your tax bills. Please
click on the link to find out more about the
valuable
tax
incentives of a holiday letting business.
Insurance
When buying
insurance for your holiday letting
business, it is important to consider the
difference insurances required for your home.
We remind all our clients that a holiday letting
business can mean that your property is
unoccupied for longer periods than a standard
rented accommodation. Without someone
maintaining the property on a day-to-day basis
your property is more at risk from burst pipes
and unexpected flooding. You also have to
consider the possibility of legal action in the
unlikely event of guests being injured whilst
staying at your holiday let property.
Our experience and practical knowledge mean that
we are always on hand if there are any problems.
However, you must also remember to double check
the small print.
For example, our research has shown that some
people, when setting up a holiday letting
business, do not fulfil the security
requirements of their property. In many cases,
your property has to be checked on a weekly
basis and must not be left empty for more than
thirty days. If such circumstances arise, you
may not be covered and any claim could be deemed
invalid.
Enhanced Wealth can also get you in contact with
some of the must trusted and professional
letting agents in the country. We can ensure
that your property is cared for by an experts
who run holiday letting businesses successfully
and efficiently and who will look to protect
you, your property and your holiday makers.
Size
Our experience of holiday letting has shown the
most successful size of property to be two and
three bedrooms. Clients have asked to buy very
large accommodations seeking greater returns
from their investments, but we have found this
is not the case. Similarly, we do not generally advise
buying a one bedroom flat for your holiday
letting business.
Letting Agents
- Property Management
Enhanced wealth has built up relationships with
a number of top letting agents and property
management companies. We will put you in touch
with the right agent for your property letting
business, depending on your needs. Some people
wish to invest a large amount of time into their
holiday letting business; others will only want
a monthly report. In either case, it is
essential for you to consider that management of
a holiday home will mean changing linen, cutting
grass, advertising, cleaning and sometimes being
available on emergencies. A management company
can deal with every aspect of the running of
your property and we will find the right people
for you
Mortgage
Enhanced Wealth has an expert team of advisers
available who will get the right
holiday let mortgage for you. Sometimes we
will suggest an interest-only mortgage depending
on your circumstances, which can be taken into
consideration when filling out your tax form. It
may also be better for you to put down a smaller
deposit and use your collateral elsewhere.
As we have previously mentioned, there are
subtle differences between a residential
mortgage, buy to let mortgage,
holiday home mortgage and a
holiday let mortgage. Our team can offer you
the best advice to get the most out of your
finances.
Maintenance
With any rented property, maintenance is very
important. However, a holiday letting business
is slightly different to a normal buy-to-let
property as the occupants change on a very
frequent basis. Holidaymakers will want to
simply enjoy your property, they do not need to
be bothered with dripping taps or broken
windows. Get your maintenance scheme in place,
whether you employ a company or do the jobs
yourself.
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