Could switching to holiday letting make you more money in 2020?
When you’ve poured money, time and sweat into a beautiful property you’re proud to let, it’s only fair that you fully maximise its yield. More and more landlords are switching from residential letting, recognising that there’s lots to be gained from getting into the holiday rental industry. With next year’s holidaymakers already starting their bookings, it’s worth considering what you could gain from making the switch in 2020.
You could be making more money
Cold hard figures come first and the average long term rent is often surpassed by the return made on bookings for short stay holidays in the right type of property. You also have flexibility in holiday letting to alter prices according to your needs, which isn’t an option in long term rental agreements. Add this to the potential tax benefits of making the move and its something you should at least consider. For a start, with holiday letting, you can claim capital allowances on furnishings while also offsetting property losses against your total income.
If that’s whet your appetite, it’s worth signing up with a trusted holiday rental industry expert like HomeAway while you smoothly evolve your business. To ground this in actual facts and figures, take a look at how much you could be missing out on over the next year with the online earnings calculator.
Change the way you look at your property
You may find that working with HomeAway breathes new life into your property business. The steady stream of guests may appeal if you thrive on the excitement of change while maintaining a steady cash flow.
You may also enjoy looking at your property’s location in a whole new light. Is it located in an area of natural beauty? Is it close to museums and theatres? Whether rural or urban, you may be surprised by how popular the location you’ve invested in is.
Make the transition easy
If you’re considering making the switch, you’ll want to get your property in front of as many eyes as possible. With HomeAway, listing is easy and low risk. You can choose from either a flat annual fee, or you can list for free and just pay a fee when you get a booking. As part of the Expedia group, HomeAway gives your listing unparalleled visibility, while also covering you with liability insurance. Guest reviews also make it easier for you to select who stays in your property – a definite improvement on being stuck with a difficult long term tenant.
Control your investment
Moving from residential to holiday letting, you may find you have more control over your property. You’ll want to keep it that way. With Home Away, you decide who stays in your property, what dates you open up for letting and at what price. HomeAway takes care of the rest. Round the clock customer support is available if you have any concerns and the platform is fully kitted out to offer everything you need to easily and efficiently manage your property’s income. With the HomeAway mobile app you could even do it all on the go.
Increase next year’s earnings
As the new year fast approaches, holidaymakers are looking ahead to their next getaways. Savvy property owners are already taking advantage of early bookings by signing up with HomeAway and getting their listings up now. They’re greeting the new year without the heavy taxation currently targeting buy-to-let investors and with all the benefits of a successfully evolved business. Weigh the pros and cons carefully but you may well wind up wondering why you didn’t make the switch sooner.
*Earning potential based on the pre-tax average earning per booking (regardless of length of stay) for the top 10% HomeAway properties in your area. Use our online calculator to find out how much your home could potentially earn. Visit homeaway.co.uk/lyp for full T&Cs.
Restrictions on the number of nights you can rent out your property in London may apply. Property owners are responsible to ensure that they understand and comply with local council regulations. For more information visit https://www.homeaway.co.uk/info/legal/owner-responsibilities/rules-for-london-owners
You should always seek your own independent tax advice in relation to renting your property.