Things to know beforerenting out your home as a holiday let
Several agencies are specialising in renting homes as a holiday let. It allows the property owner to have some extra cash when they are not using their vacation home. However, there are several rules to understand and follow. It is a good way to save money for your mortgage. However, house letting is not for everyone, as there are risks involved.
Know what is involved in holiday home letting
While you can handle the process of home letting on your own, the idea is riskier. You should check out the benefits and disadvantages of doing it yourself against finding an agent who will handle everything for you.
Understand the tax issues. To make sure of the benefits, you should check with your local council, your home insurer, and your mortgage lender.
The amount of money you will earn depends on the seasonal demand, location, type of home, and home quality. There are several conditions involved, such as the length of time guests can stay, the total number of days a year the holiday home should be available, and your responsibilities as the property owner. Likewise, several regulations apply to property owners who rent out their vacation homes.
Issues with planning
You should check the local rules that apply because, in some areas, planning permission is required for a material change of use if you will be offering temporary sleeping accommodation in a home listed as residential property.
In London, for example, the government allows short lets without planning permission, provided the total number of days that the property is rented out does not go beyond 90 days within a 12-month period. Likewise, the owner of the property is required to pay council tax. However, London's local planning officials do not allow all properties in specific areas to be used for short-term lets.
Article I: Check with your mortgage lender
Make sure that your mortgage lender permits you to engage in short-term lets. Not all mortgage lenders are open to the idea of using your home as a vacation rental. But the rules constantly change, so see to it that you are up to date on the regulations.
Article II: Listing your property
Find the most trusted agency to handle the property listing, and make sure to specify which rooms your potentials guests can access beforehand. See to it that you provide excellent photographs of your home. People looking for large houses to rent, for example, would like to see the amenities you provide, the available rooms, the surrounding area, and other features of the home.
Know your responsibilities
You should protect your valuable items by investing in a safe or installing locks on some cupboards. If you are using an agency, read the fine print because there could be exclusions in the contract regarding the provision of WiFi access, payment of utility bills, linens, towels, cooking appliances, entertainment equipment, and insurance.
Check available tax credits
Properties on short-term rental fall under the business category so check if you qualify for tax credits such as allowable expenses and capital gains relief. You may be able to offset your expenses on selected furnishings, agency fees, and utility bills against the annual profits. The tax credits are subject to government conditions.
Provide sufficient appliances, fixtures and furniture
It is vital that you do not overly personalise your holiday home if you plan to use it for short-term lets. Create a theme for the home that echoes its surroundings. Keep the décor to a minimum. Use dark colours for sofas and make sure that your furniture is fire-rated. Since different people will be using your holiday home, prepare to change some of the furniture pieces, such as beds and sofas every three or five years. Broadband or WiFi connection is a must, as well as television. Renters expect your kitchen to be fully equipped. Include a dishwasher and other white goods, as well as a good selection of cutlery, glasses, pans, pots, cookware ave and dinnerware. Consider getting an appliance repair policy so you can quickly fix anything that breaks down.
Ensure the health and safety of guests
See to it that you comply with safety regulations to protect your home and your guests. You should request a fire risk assessment and make sure that all the appliances in the holiday home are serviced and maintained annually. Install smoke alarms in every room according to regulations. There should be CO detectors if you have appliances using solid fuel. If your home has a chimney, make sure that it is swept at least once a year. Moreover, you should have a fire blanket in your kitchen.
Extend your safety and health measures to the swimming pool and hot tubs. Erect a fence around the swimming pool to prevent accidents and install torches or outdoor lighting to avoid obstacles and forestall guests from tripping at night.
While short-term home lets could be a lucrative way to earn additional income, you should be prepared for additional responsibilities. Further, you should be fully committed to it because you will be hosting guests with different personalities and preferences.
