So you want to buy a holiday lettings business, but you’re sure about the work involved? Daltons is here to help you prepare for what’s to come.
Buying a Holiday Lettings Business: Get Ready to Research
The more prep you can do here, the better. Where are you looking to buy? What’s the market like – how’s the footfall, is it seasonal, what are other places letting for? Consider the potential audience, both for the property and for the area. Will the property appeal to young people, families, or mature holiday-goers?
Where is the business, and how is this going to affect the formalities? There can be different legal steps to cover, especially if it’s outside the UK. Retain a lawyer who understands the local requirements. But don’t forget to get a survey of the property carried out before you purchase.
Now consider your financials. If you need to borrow, calculate where the income can cover all of your costs. Not just the mortgage, but repairs, agency fees, and your own income. If you own other property, it’s worth seeing if you can increase your borrowing there rather than on the lettings property, to secure a lower rate of interest. Factor in interest rates going up – and if you’re looking abroad – currency movements and exchange rates.
Running a Holiday Lettings Business: Get People in – and keep the place standing
You can’t expect to buy a flat and have customers wander up and hand you fistfuls of cash. You’re going to need to attract them. Planning in costs here is crucial – do you need to build your own website, one that can take bookings and payment? Do you intend to use traditional brochures, or existing websites like Airbnb – you’ll need the money for any fees.
Are you going to run the day-to-day yourself? Handling bookings, cleaning, repairs, and navigating busy changeover days – this can be quite a time investment, so consider if you have the capacity or if you need to use professional help. Holiday areas like cities and seaside resorts will likely have companies that can handle this for you, or you can employ someone directly. If you don’t live nearby, consider how effectively you can keep an eye on things from afar, or plan a time commitment for yourself to travel there regularly.
There can be significant tax advantages when it comes to letting UK properties – an account can help you make the most of these opportunities.
Hopefully, we haven’t turned you off with this guide, and you’re ready to start your journey to owning and running a Holiday Lettings Business! Daltons can help here too – we have dozens of businesses for sale right here >>>
