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Four reasons that renting out your holiday home makes perfect sense

Posted on Thursday 08th June 2017 by Lesley Thomas

Investing in property has been a savvy move for several decades now - with interest rates low, yields on buy-to-rent are often much higher than even the best bank accounts available. Holiday home landlords can benefit even more, because the returns on a holiday let are just the start of the story - they’ve also got the benefit reduced holiday costs for life!

Check out our top 4 reasons that investing in a holiday let makes so much sense:

 Hands off, hassle free returns

Buying overseas will likely mean that you aren’t nearby to sort out any problems with the property - but that’s a blessing in disguise. You’ll need to use an agent close to your property but they can deal with the marketing, cleaning and upkeep of the property, providing you with peace of mind.

The only thing you need to think about is which weeks you’d like to visit!

Easier to add value

With a normal buy-to-let property, there’s usually a ceiling on the rent that potential tenants are willing to pay, linked to the size and location of the property.

When people are looking for somewhere to stay while they’re on holiday, they want to have a little bit of extra comfort, space and luxury than they perhaps do at home.

Holiday rentals are something people are more likely to splurge on, so adding luxury amenities like a hot tub, an open fire or high-end furnishings could pay off in the long run, allowing you to charge more for the property. 

Reduced holiday costs for you

If you make use of your holiday let yourself, you could be saving yourself a fortune. If you go away at peak times you’ll be saving yourself substantial, and by renting it out when it’s not in use, this can go a long towards the cost of running the property. Pick a holiday rental somewhere that you enjoy spending time to ensure you make the most of it yourself.

Reclaiming the VAT on newbuilds

In France there is a further incentive for renting out your property, for those looking to purchase a newbuild property, as you can claim back the 20% VAT charged on these properties. By putting the property into a management contract, you can then have the VAT rebated, offering a big saving on the overall cost of the purchase

The Swiss and French Alps are an ideal place to invest in a holiday let if you’re a keen skier or enjoy outdoor living in the summer months  and properties in busy ski resorts are easy to let throughout the year. Take a look at the ski chalets and apartments we have in offer in resorts including Morzine, Les Gets and Nendaz.

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