Source: (Statista)
The stats above show the number of long-term empty homes in England by region. As of 2018, the North West of England has the highest number of long-term empty homes with approximately 39.8 thousand homes left idle. Regardless of the region, in each area of England, the potential to earn an additional stream of income is vast.
Acquiring a second home isn’t an uncommon pursuit. In fact, second-home ownership is up 30% since 2000. For some, it’s a sound investment in a bumpy market that will always appreciate in the long run. For others, it’s access to a quick stream of income with a holiday let mortgage or vacation rental. There are also those looking for the best of both worlds – living in a vacation home and renting out the city escape, or vice versa.
Either way, the income potential is certain and the answer to the question ‘to let or not to let’ is clear – LET. Whether you’re looking at options and considering holiday let mortgage, or already in the holiday let game; maximizing profits is key to your success.
How to Maximize the Profitability of your Second Home
Strategic locations, functionality and design of properties lend to its ability to rake in up to £1,850 per week, on average. Take it from Sara Stanley, a property company director, who made a profit of nearly £84,000 on her quirky 3 bedroom house. She invested in decorating and landscaping to appeal to high-paying tenants.
Whilst considering your property from a design and build point of view, focus on what the market demands for maximum profitability. And since the property market is ever-evolving and shifting, here are a few tips to keep you updated, in the loop and so able to meet the demands of the market.
Most renowned estate agents will keep track of and publish data on recent UK housing market trends. Keep an eye on these to stay in the loop. As well as this, it pays to assess the projected sales values of properties in your area. A professional valuation can give you a better understanding of your position in the market.
Finally, think about your marketing strategy. Whether you’re looking to flip your house, get the best price at auction, rent it out long term, or attract holidaymakers for short term holiday lets; you’ll need to appeal to your target market strategically.
Decoration and renovation
It’s no secret that in the letting landscape, interior and exterior decoration and functionality matters. So much so, that the interior design of a property enables landlords to maximize rents whilst minimizing void periods. You don’t need to break the bank. Low maintenance furnishings that are durable can keep costs to a minimum.
Crucially, yours is not the only available property available to let on the market. Beautiful show houses help second homeowners to stay ahead of the competition. Universally styled homes using neutral colors and strategic lighting can help viewers feel at home immediately. They can envisage what they’ll do with the space in the short term and risks of offensive decor are kept to a minimum. This alone is reason enough to bump up the rent.
That’s not to say that bold decorations and elaboration of a properties original features, for example, should ever be foregone. The key is to learn, understand and cater for your target demographics preferences. A holiday cottage in the Cotswolds will undoubtedly yield a higher rent when decorated in accordance with the village. Those seeking a holiday destination in the English countryside, probably don’t want to spend the week in an overly modernized venue.
Practicality
Practicality is key when it comes to accommodating other people in your home. From pet allowances to Wi-Fi, sound systems, and smart TVs; after all, no matter how much you love your family, there’s only so much a game of monopoly can do on a rainy day.
A high yielding holiday let property should be practical whatever the weather. Meaning, it should provide comfort for early evenings, entertainment for wetter days, and be in close proximity to the town/village/city attractions. Anyone looking to maximize the potential of a holiday let would do well to consider the external factors of the property itself. Including garden and patio entertainment areas as well as the practicality of the town in which it resides.
Location
For those yet to take the leap into the prosperous holiday let mortgage game, you’re in an enviable position to choose your location wisely. Between COVID-19 developments and Brexit in the shadows, Brits will undeniably be holidaying differently for the foreseeable future.
According to a Savills survey, 46% of Britons said the UK was their country of choice for their next holiday- a significant increase from the 13% who planned a staycation in 2018. When investing in your holiday let, take advantage of year-round appeals for tourists and local attractions. According to Savills, Devon and Cornwall are a safe bet. Indeed, the Cornish holiday lettings company Beach Retreats has recorded a 103% year-on-year increase in bookings for 2020.
Boost your Income Stream
Ask for and take on board feedback and criticism from your visitors. It’s the best way to gain honest insights from the opinions who matter most. Use this information to make amendments to your property to improve the stay of future visitors- and allow you to bump up the fees.
The highest-earning holiday homeowners won’t limit their income potential. Rather, they constantly think outside of the box to boost their income. Consider hosting events if your property is large and suitable enough. Weddings are a good way to earn large sums quickly.
Airbnb says the number of bookings at eco-friendly homes had increased by 141% in 2019. Holidaymakers are looking to the future by embracing sustainability. Homeowners should do the same by investing in sustainable property development- including solar electricity, insulation and eco-friendly furnishings. The eco-nature of the property is what attracts many guests to stay and in return, pay more.
Mary is a freelance tech, gadgets and lifestyle writer based in London. Her work has been featured in HubPages, Tech Crates, Virily and Recently Heard. He runs a blog, An Eye Behind, that focuses on the secret life of London.
