Every family should have a household investment strategy. Indeed, you want to be able to create a family budget that can grow to support your needs. While more often than not, boosting your finances implies changing jobs, there is another option that can prove hugely profitable for families, holiday rentals. How much money you can make as a landlord for a holiday home business depends on a variety of factors. However, if you are in a position where you can afford to buy a second home, it’s a good idea to consider an investment plan that lets you drive a positive return from your property. Here are some tips to turn the dream of a sweet holiday cottage by the sea into a viable side hustle.
Finding the best properties
There’s no denying that buying a second property is not a decision to make lightly. You need to approach the process with a strategic mind, form the moment you set a budget to the choice of your location. Searching the world for the perfect holiday home is not an easy task. But you can use some helpful pointers, such as focusing on the holiday-related facilities available in each location, from public transport to proximity to the shops or the sea, for instance. Additionally, you also need to understand that holiday rentals typically targets families; therefore, you should look for properties with multiple bedrooms.
Should you manage it yourself?
The eternal dilemma of buying a house abroad and trying to manage it from your home has a solution finally. You don’t have to be in charge of welcoming your guests and maintaining the property. In fact, you can find plenty of professional rental management for Airbnb or other platforms. Indeed, this allows you to make the most of short-term lets without having to worry about housekeeping, key collection or even breakdown of your booking returns.
Hitting the right balance of luxury
While most homeowners are keen to start home improvement and renovation projects at home, things are a little different when you’re trying to maximize your rental. Indeed, you can’t afford to think of your holiday property as a home. It is a house that requires maintenance, but that can’t be made picture-perfect – as not all your guests will be respectful of your belongings. Considering repairs before replacing works is a priority. Keeping the property inviting is a matter of staging a vision that your guests will find appealing by maximizing the wall paints, natural light and simple but comfortable furniture.
Finding the right renting price
Last but not least, holiday rentals tend to be more expensive than long-term rental agreements. As a result, landlords are more likely to recoup their management and maintenance expenses. Typically, the best and safest way to set your price is to compare the market. If your rate is too low, people will be suspicious. If it’s too high, they will look elsewhere. You need to hit the right balance.
What make holiday homes so appealing to guests? Families and large groups of holidaymakers research the comfort and privacy of a home rather than hotel rooms when they travel. Popular destinations are more likely to attract tourists and therefore, to be profitable for investors. Ideally, you want your holiday side hustle to be paying for itself.