Add value to your second home ready for holiday seekers
For all those who remembered to say white rabbits this morning then spring has indeed got off to a very good start. No-one is quite sure where the tradition started but many people across the world utter the words when they arise on March 1st. It is considered by many to assure good luck for the remainder of the year. For many landlords across the UK, March 1st is also the day they have to consider changing the appearance of their properties and also their landlord insurance.
Holiday lets a lucrative business
In coastal areas of the UK many landlords alter the use of their properties to get the maximum profit they can out of their investment. A house close to the sea in any of the UK’s many holiday resorts can bring in fantastic revenues between Easter and the end of September if let out on a weekly basis to holiday makers.
A figure of £1,000 a week is readily achievable for a three bedroomed property that is presented in a clean and pleasant condition, for those who present their accommodation at the top end of the scale then the figure of £1,000 per week can easily be doubled.
Change of use, change of insurance
The downside to having a seaside rental property is that come winter the holidaymakers have gone home and property may well lie empty for many months. Because of this many seaside landlords then advertise their property on a fixed term short lease, usually for 6 months. Utilising the property this way will certainly enable the landlord to exceed the rental yield of his counterparts in the city but it does involve more work.
It also means the landlord needs to change his insurance twice yearly. In the summer months the property should be covered with a specific holiday home insurance policy whereas in the winter months the landlord can revert to a conventional property insurance policy.
Hard work all worthwhile
March is the time that landlords start preparing their properties for the summer season. Landlords need at least a fortnight to change the house over to its different use and have to arrange such things as weekly changes of linen, a weekly clean of the property to prepare for the new inhabitants and in many cases to change soft furnishings, kitchen utensils and beds.
The holiday landlord certainly has to work harder in the summer season than the ordinary landlord but the rewards justify the work.