The age-old problem for investors is identifying how to get the best return on their investment. With changes to the tax laws and the strong demand for UK holidays, holiday letting offers a fantastic income opportunity, and a robust return on investment, which is why so many are considering it as a viable option.
So, what are the benefits of holiday letting? Here we look at 10 reasons why holiday letting is a great option for you, especially as generating another income stream to prepare for retirement or during retirement.
1. Rise in UK Staycations
Restrictions on foreign travel over the last couple of years have resulted in record booking for UK Staycations. Whilst some restrictions have since been lifted, fears of further curbs and travel bans and quarantine rules have continued to discourage many from travelling overseas, meaning demand for UK holidays remain strong for 2022.
2. You Can Make More Money Compared to Buy to Let
Holiday lets can be far more lucrative than long-term lets. During peak seasons, there’s potential to charge the same for a week’s holiday let as you would for a month’s long term rental. Furthermore, letting your property out as a holiday let allows you to regularly adapt your pricing according to demand.
3. The Tax Advantages of Holiday Lets
There can be numerous tax advantages to running a holiday let as the UK Government treats furnished holiday lets as a trade, similar to running your own business. An independent accountant will be able to provide the latest expert advice regarding tax affairs.
4. You Can Use Your Holiday Let Yourself
One of the many advantages of owning a holiday is that you have the benefit of having a ‘home away from home’. You’ll have the freedom to block dates out throughout the year - without having to pay for holiday accommodation somewhere else.
5. Can Potentially Be Your Retirement Home
There will always be a sense of security that comes with a bricks and mortar investment. With you mortgage effectively being paid by your guests, after several years you may find yourself in a position to potentially sell your property at a profit, or perhaps to enjoy as a retirement home for you and your loved ones for years to come.
6. Quick Turnaround of Guests
Troublesome tenants are always a concern when letting out a property long term. Whilst some guests may be more hassle than others, holiday let owners can breathe easy knowing that their stay will be brief and that the property can be checked between changeover days.
7. Quick and Simple Transactions
Unlike longer-term traditional lets, you will receive payments in advance of your guests' arrival, which means you do not have the hassle of obtaining references, credit checks that you would be compelled to do when looking for occupants of a long traditional let.
8. Support the Local Economy
Tourism can be an important industry for the local community in the area of your property. When visitors stay in your holiday let, they’ll usually spend money visiting local shops, pubs and restaurants. Hiring local people such as cleaners to help maintain your property, can also contribute towards the local economy. Not only that, but it also gives you peace of mind knowing that someone is keeping an eye on your property when you are not there.
9. A New Challenge in Retirement
For many, retirement means the opportunity of trying something new and taking on new challenges. Owning a holiday let is not only a great way to supplement your pension, but it can also be mentally and emotionally rewarding.
10. Ease of Using Holiday Letting Specialist
Holiday letting specialists can offer a local and personable approach when it comes to supporting holiday home owners. Cottages.com has a team of over 65 regional letting specialists spread across the UK, so they’re close at hand to check in and offer support and advice as and when needed. You can decide how involved you’d like to be in the whole process; from interacting with guests, to managing changeovers or just simply leaving everything to them.
For more information about getting into holiday letting, find out how cottages.com can help you make this journey seamless for you and to help you get the most out of your holiday let.