TOP 5 TIPS TO MAXIMISE YOUR ‘HOLIDAY RENTAL PROPERTY’ INVESTMENT
Buying a holiday/second home and buying a holiday home to rent are two very different things. Their difference resides in the manner in which the property value is gauged. For example, while a second home purchase is subject to your own personal taste, a holiday rental property must be selected with respect to the likes and dislikes of prospective tenants.
Here are the top 5 tips to help you maximize your profit from your next holiday rental property.
1. Location is key – Holiday makers enjoy sourcing tenants for properties that (a) have local facilities like supermarkets, bars, restaurants, etc. within walking distance and (b) that are at a commutable distance from train-stations, bus-depots and airports. A swimming pool nearby and close proximity to the beach is off-course a great selling point as well.
2. Unique add-ons – Bonus features help your property stand out from the crowd. Once you’ve got the location locked down, scout for properties that separate themselves from the rest with features like a Jacuzzi/hot tub in the front/back lawn, a roof-garden, and/or a spectacular sea view. Features that appeal to you have a good chance of catching the eye of holiday makers looking to promote the best rental properties online.
3. Numbers game – Keep your eye on the prize. Potential rental yield from a property could be as high as 10% if it is selected meticulously. Fix on a percentage of rental yield and scout for properties accordingly. Keeping a close eye on the visitor trends via statistics sourced from the local government to the location in question could prove beneficial.
4. Attention to detail – Before signing on the dotted line, be sure to hire a reputed lawyer/law firm that is well versed in the law of the land you wish to invest in. Every country has different land, property and tax laws that must be known before the purchase is made. In the case of an emergency, an exit strategy from the investment must be discussed and its pros and cons weighed beforehand.
5. Trial Round – Before you put it on the market as a to-let property, it is important and not to forget a lot of fun to be the first person to live in it. This will help you experience your investment through the view point of its future tenants. For example, taking a walk out to the nearest restaurant, bar and/or supermarket will give your sales pitch a more personal touch whilst speaking to a potential renter. Household fixtures, utensils, amenities, etc. must be checked and doubled checked along with the afore mentions to ensure tenants enjoy living in it, find comfort in its conveniences and thereby increasing the possibility of their return year-on-year.
Paying careful attention to the above pointers whilst ensuring your purchase isn’t influenced by personal likes and dislikes will go a long way in guaranteeing continued high yield returns during tourist season and the off-season as well.
Source – http://www.ddproperty.com/en/property-news/2015/2/85181/5-tips-for-happy-holiday-rentals