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Hi for some time we have been thinking about purchasing a property up in Northumberland with a view to renting it out as a holiday home. We are in the research stage at the moment but would love to hear any experiences of renting out holiday homes. Good or bad what are the pit falls and things to look out for. Thanks
Good:
You potentially have somewhere to go whenever you want.
You may make a bit of spare money.
The property may go up in value.
Not so good:
You may not always be able to go when you want as it's rented out.
You'll need to run it as a business and do accounting accordingly.
You have a second home to run/pay for.
People will not really care too much about keeping the house nice so there will be a fair amount of upkeep to do.
You will need to source cleaners to go in after every rental and before the next ones go in.
If it's not nearby, you will have to source someone who can carry out repairs at short notice..
You will need to jump through certain hoops in order to have a house that's suitable for renting.
I'm not saying it's good or bad to have a holiday rental house, those are just the items that spring to mind.
[Although we don't rent ourselves, Mum had a holiday house for 40 years in a location with plenty of rental properties - she died in December and the house is coming to me.
We've thought about renting to help pay for it, but that would defeat the object of having somewhere we can nip off to at the drop of a hat. So although money will be very tight we're just keeping it for us]
I have had a holiday home for 11 years which I rent out. It's been fun despite the odd mad guest, loads of good ones but a few completely disrespectful ones (like less than 5).
The returns have been a fair reward for the risk I took.
TBH now I am doing less rentals as I q like using it myself & the running costs are v low.
Good luck