Buying a holiday home to let
Are you thinking of buying a holiday home? Well now could be an amazing time to generate a return on your investment. Here are a few topics you might need to consider when researching if holiday lets are a good investment?
Are holiday lets a good investment in 2021?
Both owning and running a holiday let can be financially beneficial, but it may only be profitable and a good return on investment if you treat it like you would any other successful business. Making the important decision on whether to invest in a holiday cottage to let requires careful consideration as well as an understanding of the market etc.
Income can vary depending on the length of lets
Short-term holiday lets are found to be more expensive compared to long-term rentals. This is because the weekly rate charged for any holiday lets are usually significantly higher, which increases earnings especially if your holiday let property is in a popular location.
Disadvantages of owning a holiday let
- Ongoing costs – When owning any property it’s important to remember that you will have some ongoing costs on a regular basis, and this is something you should consider and budget accordingly.
- Seasonal income – Another drawback to consider is that some holiday lets can attract fewer bookings during the winter. So, if you have a mortgage, it may be worth putting aside some money from previous rentals to cover your repayments during the periods when your property is not being let.
Holiday Let Insurance
Holiday let insurance is a specialist insurance that provides cover for owners who let their holiday home out to paying guests. It can also cover properties both in the UK and abroad across more than 40 countries. At Intasure, our Holiday Let Home Insurance includes cover for public liability, accidental damage and loss of rent following an insured claim.
*These are brief product descriptions only. Please refer to the policy documentation paying particular attention to the terms and conditions, exclusions, warranties, subjectivities, excesses and any endorsements. – The opinions and views expressed in the above articles are those of the author only and are for guidance purposes only. The authors disclaim any liability for reliance upon those opinions and would encourage readers to rely upon more than one source before making a decision based on the information.