As the property markets have taken a bashing from the Brexit referendum with house prices either dropping or not showing any growth across the country. The tenant Fee ban hindering the rental markets, what was once a solid investment and an almost guaranteed stable income stream, where do property owners turn?
There is one sector which has shown growth and prosperity. Short term lets “Airbnb’s” have been leading the way as an extremely lucrative revenue stream. Britain has become a “staycation nation” with more than half of us planning to take our summer holiday in the UK this year. As a landlord of a large portfolio of seafront properties in Hastings it became obvious to refurbish my properties into holiday rentals and start a new company Coast Holiday Lets.
Why are we booking UK based holidays?
The increase in UK based holidays and the decline in overseas travel was initially driven by cost, but many other factors have contributed to the continuation of this trend. It includes a preference for several short breaks over the year, last minute planning and the need for quality at the right price.
It goes without saying that Brexit has got a lot of UK holidaymakers worried due to the uncertainty over many aspects of European travel changing, after leaving the EU. According to Travel Weekly, 65% said they are worried that a fall in the value of the pound will drive up prices overseas; 60% are also worried about not having free, emergency healthcare in the EU.
Location, Location, Location
It has always been the most influencing factor when it comes to property, in fact I am sure they named a TV programme after it. According to Travel Weekly, Cornwall is the top beach holiday destination, The Lake District for a rural retreat and Edinburgh is the most popular city break. Many actually look to combine all three into a week-long holiday. The average spend on staycations is expected to increase in 2019 to £837 from £599 in 2017, which is a huge 37% increase. If you have a property in a desirable destination, then this could work for you.
Getting Ready For Guests
As many of my properties were primarily for students and medical professionals and run through my company Roost People LTD. The Holiday rental market has greater demands for guests’ expectations. The adage you must spend money to make money really does come into play here. Guests want to look at your property and think WOW, I want to spend my holiday here. Kitting out a holiday home you need a fully equipped kitchen, smart TV, good WIFI, comfortable beds and quality furnishings not to mention a desirable location. Depending on the size of your operation you can choose to clean and launder the property yourself or employ a company to take care of this for you. Don’t be mistaken this is a full-time job and requires constant attention and interaction with guests. Coast Holiday Lets do offer a fully managed service to take the hassle out of running a holiday rental apartment.
The Benefits
Although there are many added costs to running a holiday rental; utilities, WIFI, Furnishing and commissions to be paid to booking platforms or agents there is still the opportunity to achieve a good return on your investment. Patrick Hanlon properties with bookings that I have achieved through Coast Holiday lets is returning on average a 7.5% yield which in the current marketplace is a tremendous result.
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