Putting all your eggs in too small a basket
Leisure renting is popular. Those who know me better are aware that I have an interest in let property. There is quite a boom in buy-to-let even in these difficult times. One of the most potentially profitable rental opportunities is what is known as “furnished holiday lettings”. In the UK that means renting out holiday cottages, houses, flats and apartments.
The minus side of letting holiday property is that the season may not be all that long. There is potential for a lot of money to be made in the high season through short-term lets. This should leave a tidy profit even allowing for periods off-season when the units might be empty, or let at a much lower rent usually to tenants staying longer.
Being the best
Of course the services provided must be excellent whether you do the work yourself, or employ an agency. The secret of making money from any holiday letting or indeed even from a guest house is location. The accommodation has to be in place where people would normally want to be , so near the sea or in picturesque countryside for walking. You get the picture.
If you don’t have a location like that you have to be very good at marketing and persuading customers of the merits of your local area. You also have to have very attractive and spacious accommodation. If you don’t, however much money you put in the business you will end up working for nothing.
Do your research
- Is the accommodation large enough?
- Will I get a good return on investment?
- Am I in the right place?
- If I am not in the “right place”, can I compensate through marketing an by being exceptional and different?
If you can plan for the worst and you would still make a profit, then think how much you can make if the worst never happens. Usually it doesn’t. Have you thought about being in the holiday business?