Continuing our series of tips for those considering buying a holiday home, part two looks into key issues that you may have overlooked or not gone into in any great detail. As well as ensuring you have the right insurance during the whole process (you may for example need to switch from unoccupied property insurance to holiday let insurance), there are numerous other things to think about:
4. What is the letting season in the area?
Think about when people want to come to the location of your holiday home. Are there nearby beach resorts that attract families for example? Are such attractions only popular in winter or summer seasons? If your property is only in demand in one season, you may find that the time you spend at the property is in less desirable months of the year.
5. Too much competition?
In some areas you’ll find that there are already too many holiday homes for the demand. Finding yourself in a flooded market may mean you have to drop your prices significantly in order to secure bookings, which may in turn harm you desired profit margin. Equally, if there is no letting market in the area, there may be no interest in your property in any case.
6. Get advice from a holiday home letting agent
The best way to find out about the local holiday home rental market is to ask a local holiday home letting agent. They will have a lot of experience and will give you a different point of view from that of the person trying to sell you the property. Find out how much you can expect to get from a holiday home rental.