Buying a property that can be used as a holiday let can give your clients a low risk return on the money invested – but they need to have done their research first.
As we are hearing from the various media outlets, the property market continues to be slow, with house prices either stagnant or, in some parts of the UK, falling. However, as we continue to see, the Cotswolds is holding strong, a ‘safe’ and solid location for people to purchase, and thus is proving to be an exception to this trend.
Location is key
In our experience, the key driver to purchasing a successful holiday let is location – this may sound obvious but many people we speak to, ask us if a property that is £X less than an alternative will perform as well in terms of rental bookings and income, and the answer is almost always ‘no’!
The Cotswolds is classed as an Area of Outstanding Natural Beauty, with some very clear brand values in terms of its generic appeal to potential holiday makers. The Cotswolds is chocolate box cottages, classically beautiful countryside, great quality pubs and restaurants, great attractions and the chance for guests to escape the hustle and bustle of everyday life attracts so many visitors, and this helps create a healthy income for holiday cottage owners.
So when your clients come to you with thoughts of purchasing a holiday cottage for short lets, location should be one of the main considerations. The better the location, the better the chance of success.
The size of the property is also important. There is a glut of one and two bedroom cottages, but conversely we would say that there is an under-supply of holiday cottages with 3 bedrooms or more; these are the houses that offer guests the chance to get away with family, enjoy larger celebrations. They also tend to have longer booking seasons and at higher rental rates.
Owner or agency managed holiday cottage
Naturally, there are no guarantees on how many bookings a year any cottage can get. It takes a lot of time, commitment and expense when setting up a holiday cottage, to get it to the point where it consistently books, year in and year out. So things to consider are the dressing of the cottage, insurance, and utilities, and these are just initial factors to deal with. A good place to start is reading our 26 THINGS TO CONSIDER WHEN BUYING A HOLIDAY COTTAGE.
In order for a holiday let to succeed, it is important for your client to consider how they will market their cottage. Generating and maintaining a website, responding to enquiries promptly, maintaining social media, re-engaging previous customers to book again, building up bookings and managing customer feedback are, to name a few, all important elements to making it a success long term.
Servicing and handling all aspects of your own holiday cottage can absolutely be done, but it takes time and effort and if your client is short on either, Manor Cottages can help. Through extensive investment, a detailed and comprehensive marketing plan, we market each property on our books and handle everything for your client. Working with a dedicated and experienced team, we are able to provide any purchaser of a holiday let peace of mind, and we also provide a full, comprehensive property services that goes right to the detail of checking the property before and after each let.
We’re happy to assist you and your client
If you have a client who would like to discuss the possibilities of purchasing a property to run as a holiday let, or if you have any properties that you think may be a good investment as a 2nd holiday cottage and would like to know more, simply contact Chris Grimes at Manor Cottages on 01993 824 252 or email firstname.lastname@example.org.
Furthermore, we offer a REFERRAL SCHEME where we offer you a £300 reward for any new owner you refer to us. Read more about how ths works HERE.