The rise of holiday rentals in property investment
Holiday rentals have become a huge financial lifeline for those who are investing in properties. Long gone are the days where buyers only purchase what they can afford from the property market – now people are looking for houses which have the capacity to offer rental income, such as properties with a spare room or an annexe.
Why should you consider holiday rentals for your property?
If you are looking to buy a property that can also provide a holiday rentals income on the side, you have the potential to reap some excellent financial benefits. When hoping to buy a large property but fearing the financial upkeep, utilising the spare space to take in paying guests is a great way to cover the expenses. While some houses may already come with spare rooms, bedsits and annexes that are perfect for short-term renting, you can also utilise other aspects of the property to turn into accommodation – for example converting cowsheds or coach houses into additional rental space. By using parts of your property as a short-term rental solution for guests, you can receive an additional financial income that can be used to invest in other aspects of your property.
Important things to consider for short-term rental solutions
Although short-term rental is a great way to increase financial gain, it is important to make sure your guests are not going to be disturbing your neighbours and fellow street residents. Rows over parking or antisocial behaviour can often occur so before renting out your property, you should make sure you set out certain restrictions so that guests do not cause disruption for others living in the area. In some cities such as London, property owners are limited on how many nights they can rent out their rooms before having to apply for a ‘material change of use’ permission from the local council. Before you begin converting parts of your property for short-term rental, you should also bear in mind that planning permission may need to be granted for changing the use of the house; insurance companies may need to be informed and you may also need to get listed building consent too.
One of the most popular methods people use to advertise their properties for short-term rental is through the popular online letting service, Air BnB. This site allows you to list the accommodation available on the site, detailing exactly what you are offering and prices. The site also has a trustworthy rating service which means you can quickly build up a great reputation if guests provide you with good ratings for your accommodation. Air BnB usage is on the rise with the Residential Landlords Association reporting that as many as 135,000 properties across the country were owned by Air BnB landlords last year alone.
G Herbert Banks
Here at G Herbert Banks we are proud to be leading experts in investment property and planning services. We can offer specialist advice in order to help you rent out your property in the most safe and legal manner – and ensure you reap the best benefits you can from short term rental. If you would like to find out more information on our range of planning services please visit our website today.
Alternatively, you can call 01299 896968 to speak to a member of our experienced and helpful team.
If you have found this blog helpful, you may wish to read our previous blog on Rental Tax Changes.
25 September 2018< Back to news