Becoming a landlord is the promise of regular income, assuming you understand your duties to your tenants and your property. It’s fair to say that a landlord or a landlady who doesn’t keep up with maintenance schedules or who set the rental price much higher than they should be is unlikely to benefit from their property investment.
Nevertheless, there are common mistakes that a dedicated landlord or landlady knows to avoid to ensure that their tenants stay not only satisfied but also in the property. But managing residential properties to let and managing holiday rentals are a different kettle of fish. While you might understand what it requires to keep long-term tenants in your property, the challenges are not the same as a holiday home. Holidaymakers have a different set of expectations. They expect the best possible experience of the property in a highly limited time – most holidaymakers stay one to two weeks in a rental, which doesn’t leave you a lot of time to make a fantastic impression. However, when your holiday home is part of your investment strategy, making the best impression you can is essential to encourage regular income generation. Here are a few ideas to make the most of your holiday home investment.
A popular destination
What is the main ingredient to transform your holiday home into a popular rental? The answer is straightforward: You need to pick a location that appeals to holidaymakers. As obvious as it sounds, too many first-time property investors make the mistake of buying a holiday rental in a destination that is a typical holiday spot. As it happens, it’s best to invest a little more in the right location than to save money by buying in a less touristic place. Ultimately, you need to be in a position to rent your property as often as possible all year long – with the exception of a handful of weeks for maintenance works and personal usage. You can research the most popular holiday destinations to inspire you in your quest. Malta, for instance, has been ranked best holiday destination 2018 for its rich history, elegant architecture, and Mediterranean lifestyle. Japan and Bali are also two hot spots in the Pacific Ocean, and it’s fair to say that this can be expended to other Asian destinations such as Singapore, Vietnam and Cambodia, which offer a mixture of varied culture, culinary delights, and exciting landscapes. But at the heart of your choice, you need to consider transportation challenges. Indeed, a remote location that is difficult to access can put off holidaymakers. As the ideal vacation length is around eight days, nobody would want to waste several days in travel. Additionally, you need to pick a property that has excellent public transport all around; not all holidaymakers choose to hire a car.
A property you can afford comfortably
The first and most important factor you need to remember when it comes to property investment is to secure your financial stability. Indeed, while a holiday property can practically pay for itself through rental income, it is essential to carefully check that you are not buying more than you can afford. Ultimately, before agreeing to anything, you need to to use an online home loan calculator for Singapore home buying or for a property in any other popular destinations. As you do, it’s also important to get a quote from local professionals regarding necessary repair and maintenance projects – most properties need some work done before they can go onto the market – and allow yourself additional financial room for furnishing and decorating. In other words, the price tag isn’t the actual money you’re going to invest in the property.
Furniture that is both appealing and sturdy
Your choice of furniture can have a massive impact on the experience of holidaymakers. Indeed, while you might be tempted to purchase cheap furniture that won’t break the bank even if it breaks, you should refrain from making significant savings on your furniture items. Of course, you shouldn’t get over the top either; it’s not a regular home, it’s a property that is going to be used by a variety of people throughout the year. But decent quality items, from the sofa to the beds, can make the place feel more comfortable. If you’re looking for an appealing interior style, get inspiration from the local area to create a holiday setting.
Digital marketing experts to promote your holiday home
The market for holiday properties is crowded. So, if you want to make a living out of it, you need to get your holiday rental noticed. That’s precisely where digital marketing plays a huge role. A social media presence can make a great deal of difference. Twitter is a good platform for short and frequent updates, which is ideal if you’ve picked a dynamic location that hosts a lot of events. YouTube is the perfect choice for videos, but you can also use Instagram as a visual presentation.
Someone to manage it for you
Ideally, running a holiday rental business is a full-time job, especially in popular destinations. Consequently, you can find benefits in hiring professionals to help you to make the most of your property. An Airbnb company, for instance, can be a great help in outsourcing maintenance, tenancy management and final checkups. More importantly, trusting an expert to handle all legal and tax requirements can also save you a lot of troubles in the long term.
The little extra that makes all the difference
What puts a smile on your face when you arrive in a rental villa? If you put yourself in your guests’ shoes, it’s easy to understand that after a long journey, people want to feel welcome. As a rule of the thumb, it’s a good idea to prepare a hamper basket. For families, for instance, you can add a few simple toys such as a colouring book or sunglasses. If your property is pet-friendly, do add a few treats for the dog. Additionally, tailoring the basket with the time of arrival can be helpful: Late holidaymakers would appreciate something they could cook rapidly for supper.
Holiday rental businesses can be extremely profitable. However, managing the challenges of maintenance, financing, and keeping your guests coming and satisfied requires planning and even professional support. The bottom line is that you will struggle if you go unprepared in this investment strategy.