Last year, UK buy-to-let investors were hit with various new taxes eating into their rental takings. Meanwhile, the Bank of England tightened its restrictions on these investors’ eligibility for bank loans – leading to a sharp decrease in buy-to-let lending, as The Guardian reported.
Thus, many investors have turned to furnished holiday lets, which remain eligible for various tax benefits of which standard buy-to-let has been shorn. How can you compete in the FHL market?
Create rooms of suitable size and form
If you want to encourage a steady stream of bookings, keep the rooms equal in size, What Investment recommends. If your holiday let’s rooms are mismatched in size, there are various ways of potentially rectifying this awkward discrepancy.
The addition of an orangery, for example, could extend your living space. Another idea is having an unused garage made into practical space. Local builders might be able to help with both projects.
Add an open or wood fire
According to research mentioned by This is MONEY.co.uk, adding an open or wood fire to the property could net you an extra £1,619 in annual rental income, judging from an average figure. However, you should check that the chimney can accommodate such an addition.
If you often feel a draft through a discernibly damp chimney, the chimney stack might need fixing – and a suitable firm, like the Leeds roofing company Findley Roofing & Building, can do that job.
Provide off-street parking
It obviously wouldn’t be the best start to someone’s holiday if they arrive at a property like yours in preparation for a lengthy stay, only to have to spend time looking for somewhere to park.
This likely explains the research-backed revelation that, if off-street parking is available with your holiday let, you will attract a higher number of bookings.
Invest in high-quality, durable furniture
Of course, the tax advantages of letting out homes for tourists can ease your efforts to maximise the monetary returns. However, you can build upon the savings even further if, for that home, you select furniture pieces that not only look good but can last for a while.
You can be a winner on both counts if the furniture in which you invest is high-quality and durable. Choosing the furniture carefully at this stage could spare you having to spend money on replacements quite as soon; this can be no small advantage during lengthy summers.
Include supplies encouraging good hygiene
When a tourist bursting with eager anticipation finally finishes the long car journey to your rental property with kids in tow, it would be inconvenient if they quickly see the need to buy toilet rolls.
Therefore, always have a good supply ready in the bathroom for when new short-term tenants arrive. Leeds Building Society, the UK holiday let market’s biggest lender, has cited toilet rolls among the list of necessary costs that wouldn’t apply with a traditional buy-to-let property.
You would also have to pay for a weekly cleaner, so don’t forget to factor this into your costs as well.