Estimated reading time: 3 mins
Holidaymakers are always looking for somewhere affordable to stay, and it might be that you are the solution they are looking for. You could rent out your own home to tourists if you are going away yourself or you could rent out part of your home while you’re still living there. You could also buy a property for holiday letting purposes if you’re interested in real estate.
Renting out your property as a holiday home could be a very lucrative side hustle, be that through a listing platform such as Airbnb or through any other holiday lettings website. However, there are a few things you need to consider before going forward.
Will there be a demand for your property?
If you’re buying a property for letting purposes this is something you need to think about. You need to buy in a place where holidaymakers are likely to visit, as you would only be wasting your money otherwise. Research popular holiday destinations and plan to buy where there is likely to be a demand for affordable accommodation.
Remember also that your wear and tear bills will almost certainly be higher (relative to a more longer term letting strategy) due to the increased churn of people staying at the property,” comments Ruban Selvanayagam of portfolio buying firm Property Solvers.
What insurance will you need?
When renting your property, you will need to be insured. This is to protect you from damages to your property and possessions and to protect you from any legal claims against unsatisfied guests. Many insurers offer holiday home insurance, so compare prices and make sure that you are covered for any legal eventuality.
What will your guests expect?
Be it your own home or a property you have specifically bought for letting purposes, you do need to consider what your guests might expect from their stay. At the very least, you need to provide bedding, dining facilities, and other home essentials to make their stay comfortable. But you need to remember that they will have other expectations.
Personal safety will be high on their agenda, for example, so be sure to carry out any repair jobs that need to be completed, and ensure doors and windows have strong locks.
Privacy will also be important to them, especially if they’re staying in a home where you’re also residing, so renovate your home if necessary to give them their own quarters. And while noise monitoring and good behaviour will be important to you when letting guests stay in your property, remember that you can’t invade their privacy with camera systems and hidden microphones. In this regard, use Minut’s smart noise monitoring for Airbnb which will let both you and your guests relax, without fear of one another.
Read reviews online too, and find out what Airbnb and other holiday letting guests have to say about their experiences. Learn from their comments and make sure that your property meets guest expectations.
What are you going to charge?
You will want to make money from your property, but you do need to be fair. Over-inflating costs will garner you bad reviews and possibly even a lack of interest from holidaymakers, so don’t list prices that are too high. For your sake, don’t charge too low either, as you do need to make a profit. Research other holiday homes in your property’s area and offer a price that is both fair and competitive.
These are just some of the things you need to consider when renting out your property as a holiday home, though there are other considerations you need to make too. Continue your research online, and plan and prepare thoroughly before starting on this potentially lucrative side hustle.