5 Issues that Could Prevent you from Owning a Holiday Let

Owning a holiday home to let out is a dream for many across the country, and has understandably become more and more so over time.

Although so many people try to dip their toes into the property letting marketing, they fall short at the first hurdle. This is because they don’t know the major do’s and don'ts of holiday letting.

To give yourself the best head start, you’ll need to know the top 5 issues that could prevent you from making your holiday letting dream become a reality.

1) Mortgage

Holiday let mortgages are one of the first major issues that holiday home owners face when looking into property letting. Without the proper guidance, you could fall short of what is required to obtain a holiday mortgage.

If you’re worried about the:

• Type of property you are purchasing

• Other loans you may have

• Credit score

Together, these factors will determine whether or not your holiday let dreams become a reality. You can find out more about what information you need when applying for a holiday let mortgage.

2) How you Intend to Use the Home

A major point that many people tend to forget is that a holiday home cannot be treated as a second home. That means that you are limited on how often you can utilise the property for yourself.

With this in mind, how often can you stay in your property?

If you are intending to let your property out as a holiday let, your property must be available for at least 210 days a year. If not, you could be violating the terms of your mortgage and agreements with any holiday letting companies.

By letting out your property as a holiday home property, you will gain more revenue throughout the year, creating more money for you to pay off your mortgage. You can help boost your revenue by viewing your holiday property as a small business.

3) Legalities of the Property

As you are going to be letting out your property to a variety of different people throughout the years, there are a number of legalities that you must abide by in order to let your property out legally.

Gas and Electric

One of the biggest legal requirements for property letting is ensuring that your property has an adequate supply of gas, water and electricity. On top of this, the property needs to provide to the holiday an adequate bathroom and kitchen area.

Health and Safety

It goes without saying, if you are having guests stay at your property, you need to ensure that it is safe. General health and safety is taken very seriously by mortgage providers and insurance companies.

For more information on the legal requirements of property letting, check out our blog on holiday let rules and regulations.

4) Where is the Property is Located

Did you know that where the property is located plays a huge factor in whether or not you will successfully land your ideal holiday let property?

The Community that your Property is in

Did you know that some communities are now putting into place stricter rules and even sanctions on holiday home letting?

As some communities have become a hotspot for travel tourism, locals have felt like they have been priced out of their hometowns.

Places like Cornwall and North Wales have started to limit the amount of homes that are being sold as holiday homes. This is to ensure that the local community have the opportunity to live and work in their hometowns.

If you’re considering buying a holiday home in an area that is known for its travel tourism, double check that you will not be met with sanctions set out by the local council.

Lackluster Location

Obviously some property locations are more sought after than others, meaning that you will need to consider the income you make when purchasing your holiday let.

Locations such as Cornwall, Devon and North Wales are locations where demand is much higher than the most other areas. This means that you could charge more for your property and almost guarantee that your property will always be booked.

If you choose to purchase a house in a location that is located in an area that isn't desirable or in high demand, you could find that you don't make enough money to cover mortgage costs.

5) Going Solo

Trying to manage a holiday property on your own is incredibly difficult, so you're going to need a helping hand every now and again.

Property Management

Managing your property from a distance can be tricky but it is made possibly when utilising a management company. Without a management company to help keep your property clean and tidy, you are going to struggle to maintain high standards for your property, particularly if your property is far out of reach.

Once you have your property, you need to work with a cleaning management company. Without an effective and trust worthy company cleaning your property for you, your holiday letting venture will fall before it even gets started.

Mortgage Broker

We have already mentioned mortgage brokers already in this blog, but the skills of a mortgage broker cannot be overstated.

A holiday let mortgage broker can give you an incredible insight into how holiday let mortgages work and provide you with some unique opportunities that would not normally be available to you.

Through a mortgage broker, you will gain access to some of the best mortgage providers in the country, even some of those that are not available to the open market!

If you're looking for more advice on buying a holiday home, check out our Guide to Buying a Holiday Home for more in-depth information.

DisclaimerAs a holiday letting owner you are responsible for compliance with health & safety laws, regulations and guidance, and for having suitable insurances in place (not Sykes Holiday Cottages or its brands (Sykes)). From time to time, Sykes shares information with you on the topic of health and safety and insurance. When it does so, it is not providing you with advice (legal, financial, tax or otherwise); please seek your own as you see fit. In addition, it is not making any representations or warranties about the information being complete or free from errors or inaccuracies. Sykes shall not be liable for any loss or damage arising under or in connection with your reliance on it.