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5 Tips To Maximise Profits From Your Holiday Rental

Nov 9, 2023 | Property, Money

Let’s say that you’ve taken the plunge and become a ‘rentrepreneur’ so that you can do what you’ve heard everyone else is doing – making loads of extra cash by renting out a property to holidaymakers. The problem is, it isn’t working out quite how you imagined, and the money isn’t rolling in quite as thick and fast as you hoped.

Well, there are a number of tips and tricks that you can use to enjoy more success, especially during the off-season. And given that these tips are intended to keep your occupancy rate up when it’s not the holidays, they’re sure to do wonders during the fast-approaching festive season.

Invest In Your Property

The first thing you need to do is look around your property and think about it from the perspective of the function it will perform – which is to facilitate comfort and relaxation. Guests want someplace nice to stay. This includes, for example, a clean space, comfy and pleasant-looking furniture (no one wants to sit in your granny’s cane furniture), excellent beds and high-quality linen, a good TV, and a stable WiFi connection. Those are the big ticket items, but the smaller things also have an impact. We’re talking about thoughtful touches, like board games, fresh flowers, fresh milk in the fridge upon their arrival, and that sort of thing.

All of this creates a holiday home people want to return to and will talk about to their friends and family – for all the right reasons, of course.

Improve Your Advertising

Having created a wonderful holiday home for your guests, you need to show it off. Get some professional pictures taken and take care over your write-up. If writing isn’t in your skillset, ask a friend or family member to help you out. Make sure to include details about the property and area, including local eateries, access to shops, and other points of interest. We’d also hasten to add that there should be no spelling errors or grammar mistakes.

Contracts That Protect Your Profits

A lot of the time, replacing or repairing items in your holiday rental is what eats into your profits. Typically, these details are included in the booking platform’s terms and conditions, however, if you’re privately renting your home out, it’s important to have a written rental agreement or contract that details who is liable for damages and missing items.

Consider Official Property Management

Nothing helps guests feel more secure about their booking (and likely to return) than a sense of professionalism, so consider using a reputable, registered agent to manage your holiday home bookings. This means going with someone who has a Fidelity Fund certificate and will treat your guests with the utmost respect, be knowledgeable about the property, and be able to deal with any emergencies and mishaps on your behalf.

Talk To Your Insurer

Another way to make sure that the money you’re making is going into your stream of income, is to make sure that you’ve got the right kind of home insurance. Not all insurers cover holiday rentals and you can’t expect your personal home insurance to automatically do this for you. It’s better to check with your current insurer first, and if you’re having no luck there, compare quotes from other insurance companies who do provide home insurance for holiday rental properties.

With the right policy in place, theft or damages done by your guests, as well as theft of any of your guests’ belongings, and any liability claims in case your guests injure themselves in your home should be insured – and not your financial responsibility to deal with.

Feeling Informed?

We trust that this advice for maximising your chances of renting out your holiday home for a decent profit and getting the most out of this opportunity will help.

Don’t forget that AA Inform is home to a range of useful tools and resources – including access to multiple home insurance quotes from the AA Insurance Supermarket so that you can find the kind of cover that has your back in these scenarios. And don’t forget to get your free property valuation report to find out the true value of your investment.

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