There is a growing demand for short-term rental properties across the UK, so if you have been thinking about taking the plunge and becoming a first-time investor, now is the time to do it. If you already own a second property but it is untouched most of the year, turning it into a holiday home can be incredibly lucrative. Real estate investors in the short-term rental market can enjoy a range of perks—if they know what they’re doing, that is. Here is a guide to short-term rentals, why you should invest in one, and how to attract more guests.
Why Should I Invest?
The short-term rental market is buzzing. If you have the budget for a rental property, here are a few compelling reasons to invest in a holiday home.
An Extra Income Stream
One major advantage to investing in a short-term rental property is the extra income stream. A holiday home will help you earn a substantial second income without a lot of work involved after the initial stage. Before making a purchase, make sure you research the property and the area to ensure it is a viable option to rent out short term. The questions you should be asking are:
- Is the property in a popular area?
- How much will I need for the renovation?
- How long will it take before I start making a profit?
In the long term, a holiday home can bring in a lot of money with very little effort, but you need to understand how much the cost of acquisition, refurbishment, and renovation will be and if you can actually afford it. The last thing you want is to be out of pocket before you can even welcome your first guest.
A Holiday Home in an Appreciating Area
A holiday home in a thriving part of town will mean that you can enjoy long-term appreciation. Properties in an appreciating market may cost more, but you can also charge guests more for their stay to stay competitive. If the property you invest in is not in an appreciating area, you can force appreciation by offering something extra. For instance, remodels and major renovation work, such as a loft conversion, can make a significant impact on the value of your home.
Diversify Your Portfolio
Real estate investment is a great way to diversify your portfolio and enhance your financial security. Investing your money in a variety of assets is a smart move, as you don’t run the risk of losing everything you own should an investment fall through.
An Emergency Safety Net
Real estate investment is relatively risk-free if you do your research beforehand, and a holiday home is a fantastic safety net should you suffer financial hardship. Not only can you turn it into a place to live if something happens to your primary home, you can even sell it outright. Even if you are not having financial woes, you still have the option to sell your second home for a profit at a later date. Just wait for the home to appreciate to ensure you make a profitable sale.
How to Create a Welcoming Holiday Home for Guests
As you can see, there are plenty of reasons to invest in the short-term rental market. Once you have decided to make an investment, you need to think about how you’re going to attract enough guests to make a profit. Here are a few top tips to help you create an inviting holiday for short-term guests.
Many people use online marketplaces for short-term homes, such as Airbnb, to rent out their property. These types of companies offer homeowners a wider audience and can help you attract more guests. When using these marketplaces, you need to make sure your promotional photos reveal a comfortable yet stylish living space and high-quality furniture can help boost the aesthetic of your property. Invest in furniture that is built to last and is fit for purpose. The bedrooms are a major selling point for short-term rentals, so pay particular attention to these rooms. At the bare minimum, each room should be equipped with a quality bed. Endurance Beds have a large collection of stylish beds on offer. You can view their collection via endurancebeds.co.uk. An emperor bed can offer the ‘wow’ factor in the master bedroom, while a single bed is adequate for the children’s room.
Get the Ambiance Right
The lighting you choose for your holiday home can make a huge difference to how welcome guests feel while staying at your property. The best way to create the right ambiance is to use multiple light sources in each room and layer your light. In general, each room should have a main overhead light, an accent light, and a task light. Remember to illuminate areas around the home too. Visitors arriving at night will appreciate outdoor lighting leading them from the garden to the front door.
Maintenance and Upkeep
Maintaining your holiday home will reduce the risk of guests calling you in the middle of the night about a problem with the property. Treat your second property like your home. Check the electricals regularly, clean out the gutters at least twice a year, and make sure the boiler is working. Doing regular checks and some maintenance work throughout the year can reduce the risk of a major problem occurring. Besides routine maintenance, tending to the garden, repainting walls, and cleaning the carpets and curtains regularly will ensure your home looks clean and tidy all year round.
Offer a Little Extra
You can make your rental home stand out by adding complimentary touches and offering guests a little something extra. A gift hamper filled with refreshments is a welcome sight for guests traveling from afar, while a plush set of robes and comfy slippers will add a bit of luxury to their stay. If you want to go big, why not invest in a hot tub? Studies suggest that more than 58,000 prospective holidaymakers search for rental homes with hot tubs. They are a great source of entertainment and will help you attract more guests.