You’ve had the idea of renting your property as a holiday rental crossed your mind more than once, but you just didn’t know how to go about it. Perhaps you even tried doing some research online, only to get lost in all the information available and end up with more questions than answers. And that’s why you need to read this article – we’re going to lay out everything you need to know before renting your property as a holiday rental!
1) Where to start
The first step is to become familiar with your local regulations regarding vacation rentals. After all, you don’t want to start renting only to find out later that you’re in violation of any laws or ordinances.
Check with your local government and determine if there are any restrictions on what types of properties may be rented, how long a property may be rented for, etc. The next step is learning about your legal responsibilities as a landlord and what insurance you will need for renters on your property.
2) How to be profitable
Profit is king. The worst thing that can happen to a business is not to break even or make a loss, but to be unprofitable. If you’re paying more in running costs than you are making in revenue, your business will go under sooner rather than later.
3) How much will it cost
Calculate how much money you’ll make by renting your property out, as well as what additional costs you’ll need to consider. Depending on how long you plan to be away, it might not be feasible to pay for holiday insurance.
But if you’re away for a month or more, it will almost certainly be worth your while (trust us). The same goes for utilities; leaving your heating and electricity on all month could cost hundreds of pounds, depending on how big your property is.
4) The process
Learning how to start a new business from conception to execution. While it may seem like you’re taking a big risk renting out your property, there are many benefits.
Whether you’re renting out your home to holidaymakers or holidaymakers are coming to stay in your home, there are a number of expenses that may arise when renting out properties for short-term stays. Here are eight things to consider
6) Legal stuff
It’s important to know your rights and responsibilities as a landlord, so check out your state’s laws. If you’re renting for less than 30 days, you may be subject to vacation rental taxes and other rules that might affect how much money you can make.
It’s worth checking in with local authorities about any applicable laws or licensing requirements.
When renting out your property as a holiday rental, do you need to be insured? The answer is yes. This insurance will protect you against liability claims and legal costs if a guest gets injured while staying at your holiday rental property.
If you’re considering renting your property out on a short-term basis as a holiday rental, such as Airbnb or HomeAway, marketing is probably at top of your mind. Finding new guests to stay in your home when you’re not there can be tricky, but it certainly isn’t impossible.
For more detailed information about online and offline marketing for holiday rentals read our full guide. But to start let’s talk through these eight things you need to know