Welcome to BuyAssociation.co.uk

Investment: Guide to renting your property

Introduction

A large proportion of people who are in the process of buying a property overseas have the intention of renting it out for at least some of the year in order to offset any mortgage costs and maintenance they might have to pay. One of the most common problems encountered is that people over-estimate the revenue they will get, and under-estimate the amount of work they may have to do in order to rent their overseas property successfully.

This guide, from the experts at Holidaylettings.co.uk, is the perfect way to get on the road to making money from renting your property out to holidaymakers.

Choosing the right property

Be clear about your objectives – how important is rental income compared to choosing a location and property that you personally desire?

Try before you buy – be sure to holiday in your chosen location, preferably at different times of year.

How many airlines fly to your proposed location? Are you reliant upon one carrier?
How would you get to your home if they stopped that route?

Check the length of holiday season in your resort. This isn’t just about climate – think about transport links and whether amenities/attractions are always available.

Consider the typical demographic of holidaymakers to your chosen area. Be sure that your property appeals to these groups in terms of size, facilities and location.

Buy property with a ‘wow factor’. Location, stunning views, luxury facilities or external features such as pool or roof terrace are unique selling points (USPs) that will make your property stand out from the crowd.

Find comparable properties on the Internet and with local agents to assess what prices they are charging and how much of the year seems to be booked.

Make use of property portals to search through thousands of properties for sale overseas before leaving the UK.

Furnishing a rental property

A higher standard of furnishing will enable you to set a higher rental price and could potentially give you a higher occupancy rate throughout the year.

If you are considering adding new features to the property, assess the outlay costs against the added rental income any additions will yield.

Select neutral furnishings and colours with minimal clutter to maximise mass appeal. Buy mid-high quality furniture that will last longer and require less maintenance.

Think practically and consider what items you would expect to find as a holidaymaker: hairdryer, iron and ironing board, washing machine, clothes dryer or line, fresh linen and towels.

Consider essentials: first aid kit (which should contain no medicines), local emergency contact details and a fixed position safe for valuables.

If you spend time in your property, get a lockable cupboard or chest to hide your own personal clutter when holidaymakers are staying.

For properties in colder climates, consider USPs like a log fire, central heating, patio heater or Jacuzzi.

For properties in warmer climates, think about air-conditioning, ceiling fans, hammocks, swimming pools, BBQ and garden/poolside furniture.

If appealing to families, think about entertaining children with TV, videos, DVDs, board games, books. Provide a high chair, stairgate and cot.

If the location is good for cycling, provide a couple of inexpensive bicycles to encourage guests to explore the local area.

Keep a collection of inflatables if your property has a pool or is near a beach.

Being a responsible owner

Firstly ensure you are allowed, legally, to let your property on a short term basis, ask someone other than the person or company you are buying the house from.

If buying on a complex, check with the community president that there are no restrictions on short term lets. Check the complex/community rules for other obligations you may need to make guests aware of.

You will need liability insurance to cover you for any damage caused by guests, as well as standard buildings and contents insurance.

Mention to your holidaymakers that they are responsible for arranging their own travel insurance to cover them should they injure themselves during their trip.

Use a booking contract to confirm details of the reservation, tenancy and terms and conditions with holidaymakers.

Check that your property adheres to all of the security measures required by your insurance policy such as specific door locks, alarms or window locks.

Check your policy for a minimum vacant period clause. This can often necessitate paying a caretaker to visit your property every 30 to 45 days during the closed season to check for burst pipes or running taps.

For peace of mind make some contacts in the area and find someone who can check on your property regularly when your property is unoccupied.

You will need to pay tax on income from your property. The UK has double taxation agreements with most countries to prevent you from paying twice. You will still need to declare all income earned, the amount of tax you have already paid and then simply pay any difference.

Check for variances in non-resident and resident status if you spend the majority of your time outside the UK, as this could save you money.

More pages

Page 1: Introduction
Page 2: Setting your pricing
Page 3: Advertising secrets

Find your perfect holiday home - over 250,000 homes worldwide to chose from

www.holidaylettings.co.uk online advertising for home owners abroad

Find your perfect villa rental with Villas4You over 500 villas across 20 destinations

Calculate how much you can earn - rent out your holiday home here