Whether you have already decided to invest in a holiday let to make some extra cash or you are not yet 100% sure if this is the right choice for you, then you have come to the right place.
Within the below article, you will discover everything you need to know about how to make money from a holiday let in the UK. From how to finance your project, to how to pick the right location, to how to provide the best customer service that will ensure your guests return to you time and time again.
Ready to start making money from holiday lets?
Let’s dive right in!
Financing your holiday let
Unless you have a big pot of money stashed away just ready and waiting to be invested in a holiday let, you will need to decide how you are going to finance your investment. Although you could simply go to your bank and go through the standard (and lengthy) mortgage processes with the hope that you will be approved, there is a better option. By choosing a specific holiday let mortgage from a company that knows the holiday letting industry inside and out, not only will you have a better chance of success, but you will also enjoy a more stress and hassle-free financing process.
Choosing your holiday let
You may already have a specific location in the UK in mind for your holiday let, but you need to ensure that any emotional attachment you have for an area does not get in the way of making a sound business decision that will ultimately make you money.
It is vital that you do your research before deciding on a location for your holiday let, and, although less popular towns and villages will be cheaper to buy in, you may struggle to rent out your property when you want to.
Opt for a holiday let that is close to local amenities such as shops, restaurants, and bars but that also has popular tourist attractions including beaches, golf courses, and scenic walks.
Marketing your holiday let
Even if you buy an impeccable holiday let in a stunning area, you will not be able to make a decent amount of money if you fail to adequately market the property. The first step is to ensure that you have a selection of high-quality photographs of your property. Your images should be high definition, and if possible, you should create a “walk through” video of your home.
In the text of your listing, make sure that you include all the relevant information, especially anything that makes your holiday let stand out from the crowd. Competition is fierce in the holiday let business, so you need to really wow prospective guests.
Looking after your holiday let and guests
Once the bookings start rolling in, it is important that you realise that your job is far from over. You now need to ensure that you provide an exceptional level of customer service so that not only will your guest return, but they will also leave great reviews for others to see.
In terms of housekeeping and property maintenance, both of these are fundamental to the success of your holiday let business. You can choose to carry out housekeeping and maintenance yourself, or you can outsource these tasks to a professional. If you do choose to do these on your own, prepare yourself for the fact that you may often get late bookings, and you will need to ensure a quick turnaround. If you cannot manage this, then it is advisable to hire someone to do this on your behalf.
As briefly mentioned above, reviews are everything when it comes to making money from your holiday let. Therefore, you should encourage your guests to leave feedback when they leave and post reviews on your website and social media pages.
If you experience a negative review, then you need to make sure that you do not issue an emotional, knee-jerk reaction. Instead, take the time to read the review and then apologise and say you will be in touch with them privately.
For positive reviews, always make sure you say thank you and share these across as many review sites and social media platforms as possible.
If you are looking to make money fast and with minimal effort, then investing in a holiday let may not be the best decision for you. However, if you are looking for a long term investment that will continue to make money for you for many years to come (as long as you put in the effort), then you should definitely consider this investment opportunity.
*This is not financial or investment advice. Remember to do your own research and speak to a professional advisor before parting with any money.