How to Run Your Holiday Let

So, you have already purchased a property and are in the first stages of deciding how to run your property as a holiday let.

In this post we will be looking at some of the major points about running your holiday let.

How are you going to market your property?

Choosing whether you market the property yourself or with an agency can be a major decision in your holiday letting journey.

It is key to make sure your property is promoted and advertised in the right way. To make sure the property drives bookings and income.

Below is a list of Pros and Cons for either doing holiday letting by yourself or working with a holiday let agency:

Pros of using Holiday Let Management Company

Knowledge and Expertise

It can be overwhelming when starting out. Holiday let companies can help support you through this process. They can help give useful tips on how to make your property stand out as well as maximising your income.

At Sykes Holiday Cottages, we have over 30 years’ experience in the holiday let industry and have helped thousands of owners start their holiday let businesses.

Marketing Power

A holiday let agency can make a huge difference in this part of starting out. A trusted company will have a marketing plan in place to make sure they target the right guests for your property and will instantly expand your reach in engaging potential customers.

Here at Sykes Holiday Cottages we have:

• Relationships with more than 500 trusted partners, including TripAdvisor, Airbnb and Vrbo

• Professional photographers and description writers

• A digital marketing team focused on improving our online presence and the usability of our site

Hassle-Free Holiday Letting

Don’t want to take up all your spare time managing your holiday let?

Having a holiday let agency look after all the bookings and payments as well as dealing with any customer queries or complaints allows you time to relax and enjoy your valuable time. This is also something to consider if you do not live close by to the property.

Bespoke Holiday Let Management

If you feel worried about having to look after the cleaning side of the holiday let and keep everything at the property up to date. Then having a managed service company might be right for you.

With Sykes Holiday Cottages Managed Service Pack, we can help find you the right companies in the properties area to help suit your needs.

We have more than 350 professional holiday let changeover and property management companies in our catalogue to help find you the right fit.

Cons of using Holiday Let Management Company

Additional Cost

Working with a holiday let agency does of course see extra costs when compared to doing it yourself. You will likely have to pay a commission fee per booking. As well as agency fees and annual fees for the company to continue marketing the property.

But, these costs could be worth it if you are not experienced in the holiday let area or in marketing properties in the past. Read more about the costs of running a holiday let here.

Please read the terms and conditions before choosing any agency.

Less Control

Giving more flexibility to the holiday let agency means you will have less time at the property yourself. You will also have less control over who stays in the property.

At Sykes, we do offer different types of owner flexibility rates, which do allow you to decide how much time you would like at the property yourself each year.

Bookings are not guaranteed

Despite the experience and expertise, holiday let agencies cannot guarantee bookings.

It is important that you maximise all the resources the agency has to offer to enhance your property.

Please be mindful of agencies that state they can guarantee 100% bookings.

Pros of going on your own

Potential for higher earnings

With you not paying towards commission fees for each booking. You are taking 100% of the rental income after tax. This can be a significant amount if you have a high number of bookings confirmed in the year.

Use Sykes' Holiday Let Income Calculator for estimated earnings projections.

Screen Guests

By managing the holiday let yourself you can decide who you accept into the property.

Flexibility with timetable

With no set amount of availability required. You can decide how many days you would like to rent the property out for and how many you would like to keep for your friends and family.

Set your own rates

You have the say on how much is charged to guests for stays. You can offer discounts and special deals to reoccurring guests easily and quickly. This may take longer if going through an agent to confirm offers.

Cons of going on your own

Time-consuming

This is a major factor in whether you go on your own. Managing a holiday let can take up a significant amount of time. So, you need to have the availability to do this. This includes jobs such as marketing the property, securing payments from guests, cleaning the property and being there to greet guests on arrival. There may be other issues that arise during the guests stay where you may also need to be on hand to assist.

Bookings are not guaranteed

Even if you are able to put a lot of time into making your holiday let the best it can be. You cannot guarantee that bookings will be confirmed.

Lack of experience and expertise in the holiday let sector

If you are brand new to holiday letting, then there may be mistakes made along the way and it can take time to build your brand. Your property may be more difficult for customers to find at the start compared to being a part of a bigger holiday letting firm.

Competition

With more and more people choosing to holiday let, it is becoming a much more competitive sector. Make sure your property is in the best condition for each guest. This will help towards great reviews and word of mouth referrals which will only aid in getting your name out there.

Getting ready for your first guests

Getting your first booking is a fantastic feeling. Here are some helpful tips to make sure your guests feel the same on arrival.

Offering a welcome pack

Offering a hamper with items from the local area is a nice touch and will have a positive first impression on your guests. Which could then result in positive feedback at the end of their stay.

If your property accepts pets or children, consider adding items that cater for them in the pack. e.g, Chocolate/ sweets and some doggie treats

Property folder

Have a folder located in the property with all the information guests will need during their stay. This can include the fire risk assessment and how to use certain appliances. As well as how to connect to the WiFi.

The folder can also include recommendations about the best things to do in the area, from the best walks to days out and the best pubs/restaurants.

If the property has been renovated since you took over, show this to guests. Allowing them to see the time and effort you have put in to make this property.

Guestbook

Having a guestbook at the property is a nice touch. It allows guests to leave feedback on their stay and allows them to view previous guests’ views and experiences.

Asking guests if they would consider allowing their reviews to be posted online would also help in attracting future bookings.

Changeovers

Managing changeovers between bookings can be a significant part of looking after your holiday let. If you offer short breaks as well, this can see more than one changeover needed a week. It is vital that the cleaning between each booking is done properly.

This will include general housekeeping of the property, a change of linen and towels as well as property checks.

Please let guests know about information such as recycling and bin collection. This can be added to the welcome folder.

If you use gardeners or window cleaners, again please let guests know on arrival or during their stay to make sure they are aware.

If you live further away from the property, it maybe worth considering having a cleaning team or housekeeper to look after the day to day running of the holiday let.

Make sure there is a key safe accessible at the property and is highlighted well in directions sent to guests before their arrival.

It maybe worth having a separate key safe box for the managed service. This is to make sure the main key for guests is not lost by error.

Management & Bookkeeping

Running a holiday home can sometimes be time-consuming. Especially at the beginning of your journey. Having a set plan is key to the success of running a holiday let.

Keep a record of all your costs for the holiday let, from insurance bills to local tax bills and cleaning costs.

It may be worth creating a business plan before starting your holiday let and updating it throughout your journey. Even if this is something you are looking at doing during retirement or as a job on the side it is a mini business.

Many of our owners manage their holiday homes remotely. If you are unable to get to your property every time you have a booking. We can offer support on the best options for you with our managed service department. Who will put you in contact with local companies to help make your holiday letting experience easier.

Annual Maintenance

Having a constant stream of bookings at the property is great but with a high number of guests comes wear and tear at the property. Making sure the property is of high quality is vital when guests expect a certain standard at a holiday home.

Budgeting some money from the business plan to help with the costs of this is essential. Some maybe easy to fix and at a lower cost, e.g, replacing any loose or damaged door handles.

Other jobs at the property may come at a higher cost. This can be from replacing appliances, plumbing, electrical issues. Also include the cost of having a yearly gas safety certificate completed if required at your property. Having a local and trusted tradesman on hand for these situations will be essential.

• Wear and tear at the property

• Garden maintenance

• Replacing appliances

• Plumbing or electrical issues

• Costs of yearly safety checks.

Summary

Running a holiday let can be an amazing way to earn money as well as meet great people along the way. It can however come with a lot of management and maintenance over time.

Deciding on whether to look after the holiday let by yourself or through a holiday let agency is key. This will then decide how the next steps are taken through the journey.

Here at Sykes, we are here to help you get everything you need to make the most out of your holiday let. Whether you need a lot of help from our managed service team or some advice from our property experts.