Remember to annualise your income on holiday lets

[nmb]

Holiday lets in the right location can be something of a cash cow although one thing to bear in mind is that you may not be able to let out your property 12 months of the year. Depending upon the location there may be periods where there is little interest, due to weather, etc, so you need to annualise your income to give a fair reflection.

Hopefully you can charge a premium for short-term holiday stays which will more than cover the quiet periods. Does anyone have any experience in this area of the market?

 

[KGeeson]

Isn't it 'the done thing' to predict that a holiday let would only be full for 6 months every year? If you can make it work with 6 months void then surely it's a good deal?

 

[nmb]

Hopefully six months activity would be a worst case scenario but if you can earn your required annual income in just six months then any additional income would be a bonus. The general success of any holiday let will depend upon the region and the level of activity throughout the year.

 

[Nicholas Wallwork]

Location and demand are the key to holiday lets. But don't forget the management and turn over too, you'll need a good local agent to manage the turnover and cleaning, it's a lot of work but if you live nearby and work hard at it I'm sure there are high returns for many...

 

[nmb]

I read somewhere that many holiday lets are self-managed by the owners as a means of keeping costs as low as possible. If this is possible then the potential savings could help create a significant income stream in the longer term. There will be a requirement for ongoing investment to ensure customers enjoy their stay but with this should be manageable within long-term relatively attractive income streams.