Real estate is one of the most popular investments right now. It’s a fairly safe investment because property prices are on the rise and they don’t look set to go down anytime soon. It’s also a good way of earning a passive income over time.
There are a couple of different options when you’re investing in real estate. You could buy houses to renovate and then sell on for a profit or you could invest in a residential property and rent it out. You could also invest in a holiday home and rent it out to tourists.
4 Tips For Investing in a Holiday Home
It’s a good option because you can charge higher rents for a holiday property than you can for a residential property so you stand to make a bigger return on your investment, but there are a lot of specific challenges attached to holiday home rental so you need to follow these tips if you’re going to be successful.
Buy Quality Properties
When you’re buying a residential property, people are going to make some changes to it themselves so it doesn’t need to be perfect when they move in. It still needs to be well-maintained, of course, but not in the same way that a holiday home does.
It needs to be absolutely perfect, especially as the success of your business is going to be based on reviews. When you’re looking for properties, make sure you’re looking at luxury apartments that are ready for guests right away, rather than a place that you need to spend a lot of money on.
Find A Good Management Company
Handling the maintenance of the property yourself is an option but if you’re looking for a low maintenance investment, you might want to get a management company to handle the day to day running of the property. Maintenance costs are one of the biggest challenges you’ll face as a landlord so getting a decent property in the first place is key. Beyond that, you need to find the right management company that won’t charge over the odds for doing work on the place.
You could use a management company that will handle all of your bookings as well but you’ll be paying a chunk of the profits to them and there’s no real reason to do that these days. Airbnb is a great way to source your own bookings. If you’re willing to be a bit more hands on and deal with customers directly, you can save yourself a lot of money sourcing your own bookings rather than paying an agency to do it for you.
A good property that is well maintained is obviously the easiest way to get more bookings but the small details make a big difference. It’s important that you provide small amenities in the property like tea and coffee facilities and toiletries in the bathroom. You should also provide a map of the local area with some great restaurants and local sights to see highlighted. These small details will really make their stay a lot better and that leads to great reviews which helps you to get more bookings.
Follow these basic tips and you’ll be able to make sure that you get a booking every single week of the year.