Could subletting help fund your holiday home purchase?
Let us take care of it, while you are not using your holiday home
Having a holiday home at your disposal is a fantastic lifestyle choice which helps you to take holidays whenever suits you. You can have the best of both worlds with time spent in your local community with established friends and families as well as a chance to get away from it all in your new location of choice.
However, even those who are dedicated to enjoying every moment of their leisure time will probably find that there are times that their holiday home is not in use and this is where subletting could help you cover the costs of owning a holiday home.
What is subletting?
Subletting, or holiday letting offers you the opportunity to make the most out of the time that you are unable to use your holiday home, by making it available for holiday lets. Through subletting, the periods of time that your holiday home is sitting unused can be turned into cash, which can help towards your ongoing costs.
At Aria Resorts we often find that couples who buy a holiday home like to avoid the school holidays, choosing to escape to their holiday retreat in the quieter months. Or you might be a family who spends most of their school holiday time at your new bolthole but find weekend visits during term time are more of a struggle. Either way, you will be left with times where your holiday home is sitting unused.
How does it work?
If you are interested in earning money through attracting holiday rentals the first decision you need to make is whether you are going to manage the bookings yourself or whether you will use a subletting scheme or holiday letting management company. Managing the holiday let yourself puts you in control and means that, in theory, 100% of the income will come back to you. However, there is a lot more to holiday letting than meets the eye and inevitably there will be further costs too. You will need to consider how you are going to get the bookings and the costs of any marketing you carry out, who will be on site to meet the guests, do the cleaning and respond to any issues that may arise during the holiday.
Plus, there are a lot of laws and regulations which affect even the smallest tourism business including Fire Safety, Water Supply, Health and Safety liabilities, Data Protection, Consumer Rights, TV and Copyright licensing, Unfair Trading Regulations, the Equality Act, to name but a few, so you will need to make sure that you are compliant for all of these and also covered by adequate public liability insurance.
Taking the hard work out of holiday lets
Alternatively, you can use a managing company or a managed letting scheme who will do all of the hard work for you. They will market your availability, adapting tariffs for the best return, cover the check in, guest services, cleaning and after holiday care. Yes, there will be a charge for their services but they are experts in what they do, so you know that your holiday home is in safe hands. Using a holiday letting scheme will help ensure that your holiday home remains a source of relaxation and doesn’t become a second job!
What do holiday lettings agents charge?
The booking commission charged by holiday letting agents will vary depending on the scheme that you sign up to and will usually include a commission-based charge as well as a changeover or cleaning fee. The Aria Resorts Managed Letting programme has a simple commission charge of 30% plus a cleaning and linen charge too. If you are yet to buy a holiday property but know that you would like to sublet, you should make sure that you consider this as part of your purchase decision. Many holiday resorts have subletting schemes already in place, so when you visit them you should make sure that you understand how their scheme works, the costs involved and speak to people who already use the scheme. For more information on the Aria Resorts, Managed Letting scheme.
Is holiday letting profitable?
It is, of course, possible to earn income from letting self-catering accommodation, but the potential income of a holiday let is dependent on many things and often the earning potential comes back to your motivation for subletting in the first place. Are you just looking to make use of your unused time to help cover costs or do you want to maximise the earning potential of your holiday home?
At Aria Resorts we have owners joining our managed letting scheme to cover their annual costs but we also have owners who have bought a second holiday home with the achievable aim of seeing a direct return on their investment. Like most things in life, nothing is guaranteed, but if you would like to see how you can make the most from subletting please take a look at our next steps advice.
For information on which of our Aria holiday home properties are most suitable for subletting, to register interest in attending one of our free holiday lettings seminars or to talk to somebody straight away complete get in touch below or call:03333 70 1000