How to Find the Right Property When Buying a Holiday Let

From location to affordability, property type to business goals, we’ve compiled our 30 years of holiday let know-how to help you find your ideal property.

What are your reasons for owning a holiday home?

People don’t always buy holiday lets purely for investment and profit. For some, it can be a life-long dream to own a second home, and they just want the option to rent it out to friends and family. For others, it can be a mixture of both work and pleasure.

Before you begin your property search, think very hard about your reasons for wanting to invest in a holiday let.

Ask yourself the following questions:

1. Is my main priority to invest my money wisely and make a profit?

2. Do I want to have a holiday home for my own use whenever I choose?

3. Would I prefer to have a property for my own leisure but occasionally rent it out to friends and family?

4. Do I want to buy a property to rent out through an agency and make a profit?

5. Is this along-term investment or am I looking for short-term gains?

6. Do I want to rent out the property by managing it myself?

Be honest! The answers to these questions will help to guide you in the right direction when you begin your search for your property. Once you’ve decided what you really want from your holiday home, the search for your dream property will become much easier.

If you are unsure whether holiday letting is a good investment, use our Income Calculator to receive estimated earnings estimations from your property.

What type of property should you buy for your holiday home?

This will depend on what you really want to gain from purchasing the property. As mentioned before, knowing exactly why you want to buy a second home will direct you towards the type of property that you’ll need to reach your goals.

Buying a holiday home to let

If you are thinking of buying a property to set up as a holiday let business and generate income from paying guests, then you’ll need to consider the following factors:

Kitchen

Is the kitchen well-fitted? If you’re offering self-catering accommodation for rent, then you need to make sure it provides adequate means for your guests to cater for themselves. Ask yourself ‘is this sufficient for guests?’. If you will need to put any money into improvements, can you afford to do that?

Dining and sitting room

Can it provide comfortable seating for all of your potential guests? If not, could you afford to do the work to have it extended? People want to spend quality time together on holiday, and that often happens around a dining table or while relaxing in the evening.Look for a property that has good space for families or couples to relax in.

Bedrooms

Does it have enough bedrooms for a family, or would it be best suited to couples? Try to make sure that at least one bedroom has an en-suite, or make sure you have enough funds to put one in if necessary.

Bathrooms

How many does it offer, what size are they and what condition are they in? If you have an occupancy of 3 or more, you should aim to be providing 2 or more bathrooms.

Accessibility

What are the roads like in the area, and does the property have steps? Consider your guests and if they can easily drive up to the property, or do they need to walk? If the property is accessed by steps, this could be a problem for elderly or disabled guests.

Parking

Does the property provide ample parking for the potential number of guests and their cars, or is there a car park near by that you can get a permit for? Finding a property with parking can be a deal breaker for many holiday goers.

Outdoor space

Does the property have gardens, and are they secure? Think about what your guests might need. If you choose to accept pets, guests will need outside spaces that are secure for their dogs. If they have children, they may want an area to relax or sit outside with a drink and catch the last of the summer sun.

Aesthetics

Does the property look pleasing inside and out? Your property will need to appeal to potential customers through the photographs of the property. Is it an old period property with special features that you can promote, or is it a new-build that already looks stunning and modern? If the property looks quite boring, can you improve it?

Structure

Is the property newly built or quirky? Is it an unusual structure like a lighthouse or an old mill? These kinds of unique properties can be a big pull for holiday makers. You need to make sure that you stand out from the crowd online.

Tip: Try looking through photographs of properties on websites such as Sykes for inspiration. Take note of the properties that you really like and make a list of reasons why you like them. This will help you to understand what floats your boat, and give you some more direction about the style of property that you want to go for and why.

Buying a second home for yourself

If you are not thinking of renting out your holiday home, then the world is your oyster! You can choose any kind of property that suits you. If you want to keep your options open, then try to consider if your friends and family would also enjoy the property.

Does the property have restrictions?

Some property types can come with restrictions on second home ownership. There are some areas and property types that can be restricted from being used as holiday lets, and this can often be the case for listed buildings.

If you’re considering building a structure such as lodge or cabin, then you’ll need to request planning permission from your local authority.

It’s worth taking the extra time to research holiday let rules and regulations to avoid getting into any tight spots once the property has been purchased.

Where should you buy a holiday let?

The location of your holiday let is one of the biggest aspects to think about when purchasing a holiday home, and you’ve most likely already had a few ideas about where you want your property to be.

The location will depend on your overall goals. Does it need to be close to your permanent residence so you can use it for leisure? Or are you looking to invest in well-established tourist destinations in hope for a good rate of occupancy?

Let’s take a closer look at what to consider when choosing the location of your property.

How local is the property to you?

Do you need to be close to your property? Think about if you're planning on managing it yourself, remotely or using a holiday let management company.

If you are planning on managing your holiday let yourself, then make sure it’s easy to drive to or has good public transport links. You’ll need to be available to visit the property regularly.

The benefit of purchasing a local property is that you’ll know the area well, allowing you to share your knowledge with guests.

If you’re looking further afield, or if you currently live outside the UK, then you can choose an area that is well-established for tourism and arrange for the property to be managed remotely.

When choosing a location that you are unfamiliar with, be sure to do as much research as possible about the area, including visiting yourself.

Take a drive around and get a feel for the place, visit local amenities and speak to locals if you can.

Is the area tourist-friendly?

Consider it from both a tourist and residential perspective. Are there building works going on, or plans for development that could impact your property?

See if you can research existing holiday lets in the area and find out what they are offering. Are you able to offer something different yet equally appealing? What are the standards in that area, and can you compete with them?

Consider families with young children and dog walkers. Are there local walks for dog lovers? Are there play areas and activities for young children?

Our guide to the best locations for buying a UK holiday home gives some insight into the places with the most potential. If you've got your sights set on popular destinations such as Cornwall, Devon or Scotland, or areas for urban short-term lets such as Liverpooland Bath, we delve into more detail to reveal the best towns and villages to consider buying a holiday home in.

Are you planning on using the property for yourself?

If the property is just for you, then you can choose a location that suits you, but think about accessibility and driving times as well as local services.

How will you manage your holiday let?

The location of your property will also be dependent on your choice of management. Do you want to save money by doing it all yourself, or would you rather have your property managed by professional service?

If you are managing your holiday let yourself, you’ll need to be close by at all times to handle the cleaning and deal with any issues reported by your guests.

If you’re looking for a more flexible option, then you can use a holiday let management service. You’ll be free to choose a property in any location but you’ll need to factor this into your costs.

Cleaning, bookings and 24-hour customer care are some of the benefits of using a holiday let management company.

How are you planning to finance your holiday let?

You need to have a clear idea of what you can afford before you begin your property search. If you come across your ideal property, then you’ll want to be in a position to make an offer straight away.

There are many different ways to finance the purchase of a holiday home, make sure you know exactly what your budget is and where it’s coming from.

• Do you have the cash ready, or will you need a mortgage? If so, do you know what will be required to qualify for a holiday let mortgage?

• Are you ready to make an offer? If the perfect property comes up, are your finances ready to make the move at short notice?

• Is there any refurbishment required? If you find an ideal holiday let but it requires work, can you realistically afford to have this done?

• What are the running costs? Are you paying cleaners? If so, have you factored in the costs of turning the property over for short-term lets? Make sure you have a full picture of your expenditure and factor this into the cost of the property.

• Do you know the taxes? You don’t want to get caught out with unexpected bills! Factor in the costs of extra taxes that come with holiday letting.

If you need help applying for your mortgage, Sykes offers a free Holiday Rental Income Estimate Letter service to make things a little easier.

How to source a property

If you’re struggling to find your ideal property, then there are number of options that you can try to assist you with your search.

Go to your local agent and register your interests. Be as specific as you can with your requirements and let them do the searching for you. You never know, they could suggest properties and ideas that you may not have thought of, including financial support for holiday let owners.

Keep your eyes and ears open for new developments. Purchasing a new-build in an area that is being developed can be great long-term investment, especially if the area is undergoing development for tourism. These houses also come with warranties that could be useful if anything goes wrong in the first couple of years.

Try searching for holiday lets that are already set up and running as successful businesses. There are many established businesses out there looking for new ownership. This option comes with real benefits such as pre-existing customers and management processes already in place.

Try signing up with an online agency. They can be great when it comes to both existing businesses and new opportunities with properties. Simply get in touch with them and let them show you what they have to offer!

Summary

Finding your perfect property is no easy feat, but getting clear about your objectives and doing your research will help you define the kind of property that’ll meet your needs.

Keep an open mind and don’t give up! The perfect property could be one click away.