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Ok it's now been a full 6 days since I've officially completed the purchase of my holiday home in Bakewell. Already, I've got the first 2 weeks in September booked out for my luxury Bakewell accommodation so things are looking positive.
However, despite being new to the holiday lettings market I know that running a holiday let is going to be much more intense and much more work then any of my buy-to-lets. To do it well; think boutique hotel rather than absent landlord. Holiday lets require personal attention, high levels of furnishings and little touches of hospitality far beyond that demanded by your buy-to-let tenants. However, the upside is that my one bedder in Bakewell should be generating £2500 per month (in peak season) this compares to the very meagre £500 pcm that might be attainable as an unfurnished 1 bed apartment.
So why am I not rushing into the holiday home business given the potential gross rent is 5 times as much. Time dear boy... time. To manage all those checkins, checkouts, bookings, little gifts, cleans, bedding and expectations of people on holiday will take a significant time input.
Therefore I can confidently say that this holiday home will be my first and possibly last purchase apart from a potential property in Palma Mallorca. Anybody who knows anything about the rental business knows that the size of your expected rental yields will to a degree reflect the immediate of management imput. You don't get 'out for nowt' in this game.
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3 comments:
I have a holiday let which is managed for me by a very competent management company. You have to take a hit on the cost of cleaning and laundry, but it's well worth the expense. It also gives me somewhere for short breaks with the family.
I'm considering selling my old house in Stoke on Trent and investing in a holiday property nearer to where I live now (mid-Wales) because:
- my interest only mortgage is coming to an end
- it would be nearer to where I live
- the yield would be higher (agree about the input being greater too!)
- I think we may see an increase in UK holidays since leaving the EU
- I'd have extra space to house visiting guests
But on the flip side of the coin...
- local people hate holiday lets!
- it's a lot more effort managing check ins and outs/complaints(?)/wear and tear
- I could use the capital from my house sale to build new homes on a plot of land I've recently purchased... Or I could just find this with the income from the holiday lets
- I really like my current tenants (after having some absolutely horrendous experiences!)
I think holiday homes are the future in BLT business. I've got a project starting this October to build 9 studio flats and I'm thinking to let couple of them to holiday makers. If thinks go well i might convert the whole building to a holiday home business.
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