Maximise your earnings through Holiday Letting
Maximise your earnings through Holiday Letting
With low interest rates giving poor returns on bank savings and the residential buy to let market experiencing a downturn you may be considering holiday letting as a way to earn additional income. Or maybe you are thinking of buying a holiday home to enjoy with family and friends but want to help cover your ongoing costs by letting it out when you aren’t using it. Either way, the income that you can expect from holiday letting is variable so we have put together our top tips for maximising your return.
Choose your Location Wisely
To be in with the best chance of getting a good level of holiday let bookings you need to choose an area where the demand for holiday resort accommodation is high. Choose areas with a strong and consistent tourist trade and if you are planning to let out during the shoulder seasons you should also consider what the shoulder season trade is like too.
Aria Resorts have 8 Resorts which have a Managed Letting Service located across the UK. For more information on the UK tourism market and the Aria Resorts regions click here <link to article four>
What Type of Holliday Home?
If you are buying a static caravan, holiday lodge or one of our long lease, mortgageable holiday homes for your own use you definitely need to make sure that it meets your needs first. However, the type of property that you purchase can also have an affect on the number of bookings that you receive as it will dictate what type of customers you attract.
If you are planning to let your holiday home mainly during the school holidays it might be worth considering a larger property with an additional toilet or bathroom as these books out well with larger families who tend to stay for a full week or fortnight. In the shoulder months, we tend to see the smaller units being more popular as the market is more geared towards couples and very young families.
Higher quality holiday properties with added luxuries such as freestanding furniture, en-suites, dishwashers, and hot tubs are also worth careful consideration as holidaymakers are increasingly more discerning and often looking for the highest level of luxury that they can afford. Luxury holiday resort accommodation is less commonplace within existing resort hire fleets and so there is high demand but a low level of supply. This works particularly well for accommodation that can attract repeat and loyal customers and also reduce the need for promotions or reduced tariffs.
The added level of luxury will also increase the booking tariff so although your initial outlay will be increased, you will get more income per holiday let, for the same or similar ongoing costs as more affordable holiday accommodation options.
Add an outdoor space
When we think of holidays we often imagine relaxing outside more than we consider what our bed or bathroom will be like. Visions of sipping wine on a balcony can be met by holiday accommodation with a smart decking area or even a roof terrace. The outside area makes your holiday home more attractive to holidaymakers and will command a higher tariff. All new Aria Resorts holiday homes are sold with an outside area included.
Make the Best Weeks Available
Whilst resort based holiday accommodation has a wide and varied market it remains most popular with the family market, as it still provides one of the most affordable holiday options available. Therefore, if you are able to make your holiday let available for the main, peak holiday periods you will maximise your earnings for the year, these include the 6 weeks summer holidays, Easter and Whitsun week but you should also consider providing availability for the February and October half terms.
Holidays taken in these periods also tend to be longer in duration so achieve a good tariff. Bookings in the shoulder periods are more likely to be shorter breaks so although you may receive a higher per night tariff but occupancy may be lower overall.
Don’t Miss the Start of the Booking Season
Arguably the booking season starts on Boxing Day as we see a spike in online searches for holidays and an increase in bookings which generally lasts right through until the end of January. At Aria Resorts, we pay a lot of attention to the start of the booking season with a well-advertised January sale to make it as easy as possible for people to secure their holiday early.
All of your expenditure on purchasing a holiday lodge or static caravan could qualify as a basis for tax relief if you meet three occupancy conditions which will allow your holiday home purchase to be considered a Furnished Holiday Let. This money could be offset in the year of purchase or subsequent years to reduce your holiday let business’ net profits and therefore reduce taxes paid on any profits made through letting to as little as nil. More information on the favourable tax regulations of holiday let
Make use of a Holiday Letting Scheme
Whilst you can manage your own holiday let you may find it more cost effective to use a subletting scheme, which will also help you meet the occupancy conditions necessary to be considered a Furnish Holiday Let.
When you use a holiday resort subletting scheme you are getting the same expertise in marketing and revenue management that they use for their own business as well as a much wider reach thanks to the larger marketing resources and budget that they have at their disposal.
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