Whether it’s in sunny Spain or picturesque Portugal, having a holiday home is a great way to feel comfortable while you’re abroad and do things the way that you like without the restrictions of hotels. Most people only spend a few weeks a year at their holiday home if they are lucky, so if you want to make the most out of the investment, you might look at renting it out when you aren’t staying there.
Here are our top tips if you decide to do so:
1. Let the taxman know
As is the case with most things, letting out your holiday home is going to come with tax implications. If your rental income is more than £2,500, you need to report this on your self-assessment tax return. However, if you decide to let your holiday home for the majority of the year then you could qualify for several tax reliefs, such as accounting fees and insurance. Bear in mind that these could change in the near future when Brexit comes into play.
2. Stay in the house yourself at least once a year
This one probably goes without saying for most holiday home owners as they want to make the most of their purchase, but staying in the house will highlight any issues such as low water pressure, missing kitchen utensils or any small improvements that could be made.
3. Give your guests a memorable stay
Think about great hotel or holiday home experiences you have had and keep this in mind when preparing to let out your home. Comfortable beds and good quality bedding are usually number one on the list of desirable qualities. Invest a little more in these if you are able, as an uncomfortable bed can really dampen a holiday. Similarly, lack of or slow WiFi can be a great annoyance to guests, especially if your home is in a more rural area. Additionally, small touches like a bottle of wine or a list of your favourite local restaurants can leave a great impression and encourage people to leave good reviews about their stay.
4. Leave your property in trustworthy hands
If you don’t live in the same country your property is located in, then it is important to have someone trustworthy to manage it. There are many companies that will do this for you, just be sure to do your research first. Finding the right people will ensure that managing the property won’t cause a headache for you.
5. Effectively market your property
With websites such as AirBnB, renting your property has never been easier. Make sure to take good quality, inviting photos of your home as this is the first thing potential guests will judge your listing on. Enlist the help of a professional photographer if you don’t think your skills are up to scratch as this could make or break a booking. The review section is another critical factor that potential guests will take into consideration, so encourage happy guests to leave them and reduce any factors that could prompt a complaint.
In conclusion, enjoy your home, take note of these tips and enjoy a profit from it while you’re not using it.
However, should you have an issue with an overseas property, including lack of rental income leading to mortgage arrears, difficulty in maintaining your mortgage payments, negative equity or property repossession then give us a call.
Many can’t see a way out, but there are options. We offer a free initial consultation to discuss all possible avenues, just call +44 (0) 330 124 1230.
* This article has been written by a third party not owned or controlled by Spanish Property Insight (SPI).
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