So, you’re in a position to consider investing in a holiday rental which is fantastic news. But, there are plenty of things that you need to evaluate before you can jump into this investment. You might have the money ready to go, and although that is a great start, it is vital that you take the time to review a whole range of other things. With these 10 things considered, you will feel much more prepared to make your investment!
Find The Right Mortgage
First up, it is vital that you consider your mortgage options before investing. There are so many choices out there, so you need to make sure that you find the right mortgage for your financial situation. The best thing to do is work with a mortgage broker, as although this might require some upfront investment, you are likely to find a much better choice for you that will save you money in the long run.
Research Your Locations
Next up, you need to research different locations where you want to invest in your holiday rental. For example, find out where you can buy a property for a good price, which will also help you to maximize the profitability of the investment. You might find an absolutely stunning property way under your budget. However, barely any tourists visit at all. Similarly, you might find somewhere that you love that is over budget. But, your return on investment won’t be what you need it to be because of the lack of amenities.
So, start your research and then you are likely to narrow down your options more easily. The best place to start is to decide the type of property you’d like to invest in (seaside, countryside, a ski resort, etc), then it should be easier to select a country, then gradually work your way to a specific location and property. Although we’ve made this sound simple, deciding on the best place to buy a holiday rental is likely to take months or even years, so take your time to get this part right and you will reap the benefits in the future.
How Will You Maintain The Property
Once you’ve decided on the location, you need to be realistic about how you are going to maintain the property. Who will clean the property between visits? Who will be on hand if the guests have any problems? Do you know someone who will be able to fix issues with things like electricity, water, and gas? If this isn’t going to be your responsibility, you need to think long and hard about the logistics of maintenance.
If you don’t have any contacts in the area, you need to do some serious planning about how all of this would work. This could cause a serious amount of stress further down the line and could lose you money. So, choosing your location when investing in a holiday rental based on how it will be maintained is an important investment consideration.
Look at Distance From Amenities
Now that you have a location in mind, you need to think about the amenities around the proposed property. Really, you need to have a decent amount of restaurants, bars, and activities within a 20-minute walk. The specific details will depend on the type of property, for example, if you were buying a ski chalet, you’d need to make sure that the ski lifts were close, there were restaurants and it could be accessed easily. For a seaside property abroad, you’d want the beach to be within a 10-15 minute walk and plenty of bars and restaurants nearby.
You might have the most beautiful villa in the world. However, if it is in the middle of nowhere, it is unlikely that the majority of potential customers would be interested. So, when investing in a holiday rental, decide on your target audience for the property (families, couples, large groups), think about the amenities they would need and want, then this will help you narrow down your search even further.
Match Bedrooms with Bathrooms
You’ve probably narrowed your location right down, it’s probably time to start viewing. One tip we have that could significantly improve the profitability of your rental property is to make sure that you have the same amount of bedrooms and bathrooms. The larger the property is, the more important this is, as large groups are likely to have couples and private bathrooms will be a big drawing point. If this isn’t possible, go for one bathroom for every two bedrooms and nothing less.
Work With A Solicitor
Now that you’ve found the right property for you, it’s time to work with a solicitor to make sure everything goes through properly. There are certain things that you simply can’t sort yourself, so it is best to work with a well-recommended solicitor who will guide you through the process and make sure that everything is in line. Invest in a good solicitor now and it will be worth it in the future.
Get The Right Insurance
As well as working with a solicitor, it would be worth working with an insurance broker. They will ensure you have the right cover when investing in your holiday rental. Consider public liability insurance, employers’ liability insurance, contents insurance, building insurance, and potentially more. The specifics will depend on your property individually, which is why seeking the advice of a professional insurance broker is always advised.
Go For A Fresh Interior
Once you’ve found the right property, it’s time to start thinking about the interior! You want your property to be as clean, fresh, and welcoming as possible. So, the best thing to do is go for a simple interior with a neutral interior. In photos, this will look super clean and it will appeal to a wide range of people.
Go for a shade of white or off-white for all of the walls, choose tasteful art to bring color to the space, and add some texture with soft furnishings. One of the best tips we can give you to get people interested in the property is to have white bedding. Having cheap bedding sets that are bright, white and can regularly be replaced is much better than having expensive darker bedding that will last longer but won’t be as sanitary. Of course, get as good quality bedding as you can, but make sure you regularly change it is essential.
Investing in a holiday rental for additional income is of course a significant purchase, so taking the time and investment to get it right the first time around is really important. If you are unsure of anything, seek the advice of a professional property investor and they should be able to give you the guidance you need to make this investment a success.