Many people have money invested for the future in the form of a pension but it’s also possible to secure a healthy retirement income by renting out a second property on the holiday market. In many areas of the UK there has been a significant increase in property prices, coupled with a prosperous domestic holiday industry and attractively low mortgage rates. This means bricks and mortar investments are becoming an ever more popular option, especially for people who’d like to enjoy a higher income when they leave work.
Choosing to purchase and rent out a property for holidays lets is a big decision. This is a very different industry to long-term renting; holidaymakers are looking for a home from home with some extra luxuries. Well decorated and furnished properties with Wi-Fi, hot tubs and all the latest domestic appliances are in most demand and command higher rates, as are those that allow dogs. Improvements can be expensive, but after a few years of letting you’ll soon begin to see a return on your investment – especially if you put some real effort into marketing.
Before taking the plunge, bear in mind that you will incur costs even if you no longer have a mortgage to pay off, these could include taxes, maintenance, repairs and housekeeping. For detailed information on the implications of renting out a second home, there are a number of excellent online resources dealing with everything from tax bills, to the reasons why holiday homes are a shrewd investment.
With an increasing amount of British people opting for staycations rather than venturing abroad, the holiday rental industry is flourishing. England is an attractive option for many, because although it might not always be cheaper than abroad, the journey is often shorter and the cultural familiarity is reassuring. The UK has many beautiful locations, with England’s south coast, Cornwall, Cumbria and Scotland amongst the most profitable holiday lettings markets – but not everyone prefers the quiet life.
Some holidaymakers seek out the excitement of a city break in a vibrant place like Manchester, where they can visit numerous contemporary attractions and learn more about the area’s industrial heritage. If you’re considering renting out a property for tourists in the Manchester area, then it’s worthwhile seeking advice from a property expert with plenty of experience. The right person can manage the bookings on your behalf, help to maximise your income and advertise your property to a wider audience.
A holiday rental home can provide a reliable boost to anyone’s pension pot and with the right property management agency the process will involve a minimum of effort. You’ll have the satisfaction of knowing that your property is enabling other people to have fantastic holidays, whilst also safeguarding your financial future.
Harry Dhaliwal is a Manchester local who has been involved in property management and development his entire working life. He has overseen the Belvoir franchise since 2004; it’s now a successful letting agency with numerous properties dotted around and within Manchester city centre. His interest in history and travel has fostered a keen understanding of architecture and Mr Dhaliwal is also MD of property development specialists, First Step Group Ltd.
Silver Travel Advisor recommends that you always take independent professional advice before deciding to rent out your property for holiday lets.
