There is an increasing trend now amongst home owners and especially those people fortunate enough to actually have two homes in popular tourist areas to let out their homes to families to take their summer vacations in. There are even a number of dedicated websites that will offer to manage your property and even do all of the advertising and management of the property for you. If this is something you are considering then obviously the first thing you need to do is to select a good lettings management company to ensure everything is ran smoothly and gives you the least headaches for you or your family. There are obviously advantages and disadvantages to letting out your house to holidaymakers so here are some things you might want to consider.
The first and most obvious one is that you are going to gain a second income from the rental value of your property. Depending on things like the number of bedrooms that you have, the location of the property and whether or not there are some good local amenities or tourist attractions in the area, then this is going to increase the amount of money you are going to be able to command.
Also, if you are in the lucky position where you may not owe any money on the house to the mortgage company, or you may have inherited a property from a relative, the money that you get from the rental is all going to be clear profit. If the property has been bought with a mortgage on something like a buy to let scheme then you will have to consider not only the repayments, but also the fact that it is a holiday letting then it may not be being used during certain months of the year. For example, let’s say you have properties to rent in Newquay, Southwest England then they may only be let out during the warmer summer months. On the other hand, a property in Scotland for example is a location that people will visit in both the summer and winter months as the country can be appealing to walkers and climbers in both of these seasons.
It’s a fantastic way to earn money on your property but there are a couple of things to consider as well. Firstly you are putting your trust in total strangers which can be un-nerving. Secondly, there are tax issues that will need to be addressed and finally, by using a letting agent, they will charge you a small commission.