How to make the most of your holiday let

Despite flights regularly taking to the skies again, the staycation remains firmly popular here in the UK – and it’s a trend that looks set to continue. Bookings are up 35% compared to pre-pandemic levels and 85% of holiday let owners say bookings are stronger than ever*. So how can landlords like you make the most of your holiday lets? Read on for our quick guide.

What’s in it for you?

For landlords with properties in scenic spots or desirable locations, renting them out as holiday lets offers attractive returns as tighter regulation squeezes the standard buy-to-let market.

While they can be trickier to manage at times, holiday lets can often be more lucrative than Assured Shorthold Tenancies (ASTs) – especially nicely maintained properties with good facilities – making it worth the extra effort. And because they’re still classified as a business, tax rates are lower and VAT only kicks in if your let’s turnover is over £85,000.

Since Covid, the holiday letting market has noticeably grown – in fact, 25% of all current holiday let owners began renting during the pandemic* – so the financial opportunities of this rapidly developing market could continue to offer up good returns as mortgage providers and lenders tailor their products to better suit the needs of landlords with holiday lets.

So whether you’re looking to convert a property already in your portfolio or you want to invest in a new holiday let, it could help you increase your income – especially in peak season.

So where do you start?

If you want your holiday let to be successful, there are a few considerations to take into account. Firstly, you should think about the type of holidaymakers you want to target. The size and character of your property will influence this to a certain extent, but it’s worth thinking about whether you want families, groups, couples, pet owners, etc, so you can provide the right fixtures, fittings and amenities.

It’s also important to consider what your property looks like. The better looking a holiday let, the more money you’re likely to make. This is simply because holidaymakers like to stay in places that offer something a bit different to the everyday. That said, a good location near to a big attraction such as a beach or destination will also help up your bookings.

Inside, keeping your property clean, tidy and up-to-date is important. A holiday let with a friendly feel with thoughtful gestures such as a welcome pack and a few essentials in the fridge can make a big difference – and you’ll want to encourage your guests to leave positive reviews.

How do you manage your holiday let?

Holiday lets have quick turnarounds, and keeping on top of the cleaning and changeovers can be demanding. So you need to think about how you’re going to manage your holiday let in the long term.

If you don’t live locally, then hiring in an agent to manage it for you is the best option. Their role will be to welcome the guests, keep the property clean and in good condition and even advertise it for you. Their fees are generally a percentage of the rent so you’ll need to take this into account when budgeting.

If you’d rather manage your holiday let yourself, be prepared for more regular upkeep than when you rent out a home. Changeover days in peak season can be hectic, and you may have to be available for emergency call outs if anything goes wrong while guests are staying.

At Protect My Let, we offer a 24/7 support line number as part of our landlord insurance policies – so if your guests do need emergency help, for example if the pipes burst or boiler breaks, they can phone us directly so you don’t have to worry.

What landlord insurance do you need?

Holiday lets can be a rewarding investment for landlords like you, so it’s important you keep them protected. Think about whether you want to add extra protections such as home emergency cover to your landlord insurance, so you know any urgent problems will get dealt with swiftly.

You’ll also need to keep track of how long your property is left empty. For example, if your holiday home is a big hit in the summer but much quieter over the winter and is likely to be unoccupied for a certain amount of time, you may need to switch your cover to an unoccupied policy.

That’s where we can help. If you’ve already got a holiday let or you’re planning to add one to your portfolio, speak to our experts today for the best ways to protect it.

*Sykes Holiday Cottages’ ‘Holiday letting Outlook Report 2022’