Property investors who choose to base their portfolios in coastal towns will be looking at the weather forecasts over the next few months and hoping the warm weather of the last few days will continue over the next couple of months.
Conventional landlords making hay
It is no secret how well the rental sector has been faring over the last 12 months or so, culminating in the report released by LSL properties earlier this month that showed landlords are now achieving record levels of rental charges. The average rent for a home in the UK is now just short of £700 a month.
Holiday lets experience highs and lows
Landlords who choose to cover their properties with holiday home insurance can usually expect to achieve much higher levels of rent in the summer months than £700 a month. A holiday cottage that sleeps six people and is well presented will command at least £1000 a week in the school holiday period. June and September will also see very good returns although slightly below the levels of July and August. Of course in the winter months bookings can be quite sparse and any investor in holiday homes will always make sure he has empty landlord insurance, it is part and parcel of the trade.
School holidays provide easy pickings
June, July and August are of paramount importance for the holiday home owner. They are the easiest periods to fill and bring in massive revenues. The school holiday period should see any reasonably kept holiday home close to full occupancy. However, things are not that simple. The landlord still has 9 months of the year to fill with part time tenants and good weather in June, July and August can have a big effect on those other months.
Good weather will encourage further bookings
There is nothing better than great holiday weather. Everyone enjoys a holiday better when the sun shines, and families will tend to rebook their following years holiday at the same place more frequently if they are going home with a sun tan and pleasant memories of outdoor eating and beach based picnics. They will tell friends and relatives of the great time they had when get home which in turn will lead to their holiday home landlord getting more enquiries about his property. The massive drop in price for a winter holiday may also persuade holiday makers to return later in the year for a long weekend.
Holiday makers spending less when they arrive
The early talk in holiday resorts this year is that bookings are strong and are anticipated to remain that way throughout the season, but allied businesses such as shops, theme parks and restaurants have reported that visitors seem to be spending less while they are on holiday. A continuation of good weather will undoubtedly help all those in the holiday trade and all will be looking at forecasts more closely as the school holidays draw near.