What To Consider Before Letting Out Your Holiday Rental
You finally took the plunge and purchased a vacation home in your favorite holiday destination.
But did you know that you can offset the expenses and help cover the cost of purchase by renting it out when you aren’t using it?
Did you know that if you purchased your holiday home in the U.K. and chose to rent it out as a holiday let – you are able to obtain top-rate interest tax relief while also earning as much as £15,000 a year for the average two-bedroom unit?
Long let property owners are being hit hard by new tax laws which the holiday lets are exempt from.
In addition to the tax law benefits, there are other things you should do and be aware of before renting out your holiday home:
- Make a chart comparing what it will cost to rent out your property with what you expect to earn. Be sure to include all expenses such as insurance, maintenance, utilities, and cleaning and linen services. Ensure that you obtain proper insurance to cover both your property and your renters.
- There are several items that you are able to claim when you let your vacation home. These include depreciation on furnishings, capital gains tax relief, and other expenses.
- In order to qualify for holiday home tax allowances you must be sure that your property is available for 201 days each year and that it is let for at least 105 of these available days. Guests cannot stay for more than 31 days.
- Holiday home renters often expect some of the conveniences and luxuries of a hotel, such as WiFi, TV, coffee maker, fresh linens and towels on arrival, and a clean home.
- Ensure that the property photographs are professional quality – these photos are a major factor in marketing your property to potential renters. Have an eloquently written property description.
- Be sure to include all amenities your property has to offer and do not misrepresent what is available. This could result in poor reviews.
- Ensure that you hire professional cleaners that are available to come in between guests. Often there are only a few hours between departing guests and arriving guests.
- Be sure to have the numbers for plumbers and other maintenance personnel handy in case of emergency.
- Be sure that you properly screen your potential guests to help avoid problems. Have the names of all those that will be staying in your home.
- Set ground rules for your property and ensure that guests sign a contract that they will abide by all rules.
- Try to include a few personal touches to make your guests feel welcome and pampered, such as providing beach toys, sightseeing tips, menus for nearby restaurants, and bottled water for when they arrive.
Renting out your holiday home is not something to take lightly. Air Angels provides expert service and advice and can help you get your property ready to welcome guests. We can provide booking management, marketing, professional design and photography services, guest vetting, linen services, cleaning services, key management, 24-hour check-in, and we can also handle guest questions and property issues as they arise.