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My wife was talking to someone who has bought a new static on a holiday site and it letting it via AirBnB. It's a popular area and she is charging £100 a night. AirBnB take their cut and handle the interface with the customer. She has a cleaner come in and pays £40 per clean. It looks like a reasonably good additional income. Someone left it in a state recently but customers have to leave a deposit to cover it so it wasn't a big deal. Does anyone on here do it? Just curious about the pros and cons. I realise that you'd have to use the money made in summer to cover the quieter periods.
Pro's:
Potentially a bit of extra money
Con's:
Money spent buying it could be earning interest/interest payments on loan to buy it.
You can't use it when it's being rented (obvs).
Site fees can be massive.
You nearly always have to sell back to the site (when they decide) and at a ridiculously low price.
Maintenance and repair costs.
Depreciation.
BBC has covered this recently.
We never rented our van out as it was set up for us so we had clothing there etc. It may help cover fees, but that's it.
We inherited our caravan but had to let it go after it reached 10 years in our hands. The van was 20 years old, mint condition, but the sites are strict. Wasn't worth splurging £30k on a newer van that we could only keep for 10 years. So that's £3k a year capital, then add on £5k for ground rent, electricity and insurance. I bought a van that I can use as a camper and a tent. You can do alot with £8k a year, so we now travel around more and go abroad. They are a big financial noose.
As above, are you aware of the scam-tastic nature of the holiday park sales sector?
You'd need to do your sums very carefully and not be over-optimistic.
The holiday parks let out their own units for very reasonable prices at off-peak times as well, so you;d be competing with them.
The best holiday parks with the most facilities won't let you sub-let at all.
Sticking it all on red may give a better return! 🙂
If you have one, you need to use it lot, so ideally isn't too far from home. Ours was coastal and about 90 minutes away. We used it most weekends. Also the 'season' is quite short - 8 months. That £8k then looks like £1k per month !!! That's a lot of weekends in a hotel.
It's kinda of the inverse of building costs- think what income you'll receive and then halves it!
Biggest house in my village by a long shot is owned by a caravan park owner.
Biggest house in my village by a long shot is owned by a caravan park owner.
I know one...multiple houses, two Ferrari's etc.
Finding it harder now the COVID effect has ended.
I know three couples that have statics on different sites and are very happy with them. 2 are retired and use with their grand kids and let their adult kids use it too. The other are both teachers who on first day of holidays pack up and head off and come back just before term starts - he spends every dry day fishing. They also use it during term time at short notice once the weather is clear and because all their stuff is in situ.
Service costs and resale rules were recently highlighted in the news.
Some sites start raisng service charges quite soon after purchase.
Most sites will handle the resale and not let sell yourself so depreciation is huge a bit like trading a car in and then seeing it for sale a day later at a higher price. But the fjgures are much larger!
Be sure a site allows reletting this way with Air b n b some sites handle this service thrnselves and will tell you iits popular in the sales pitch!
But in reality its a struggle.
A solicitor would explain the small print and well worth the fee its unclear and peace of mind.
Lots of people enjoy them ,good luck with your venture.
Saw the thread title, and the first thing I thought was 'Father Ted'
Would've posted a picture,but you know. 😏