This list covers the main points that you should be aware of, when considering personal use of your holiday let investment. In addition, be aware that there have been reports in the news recently that the HMRC plan to tighten rules to mean that holiday landlords will need to prove they have made a realistic effort to rent properties out.
While this is intended to target second home owners who falsely register as holiday lets, it will still have implications for genuine holiday let owners, in terms of keeping good quality records to provide evidence of their efforts to rent their properties. David Wallace , a specialist in hospitality lending here at The Cumberland advises how personal use of a holiday let fits in with your mortgage application:. Our Mortgages. Find out how much you could borrow, view mortgage rates and compare monthly payments.
Our Accounts. Find a savings account. We offer a range of accounts whether you're saving for something big, small or just a rainy day. Apply for a current account. Provided by RSA. Our Finance Options. Finance Calculator. The planning team will consider the potential impact on the local area and neighbouring properties. If your application is rejected, you will receive an explanation and you may be able to resubmit an amended application that takes the contentious issues into account.
Find out more: Which home improvements pay off? If you are granted permission by the council to swap the use of your property to a holiday let, you might not be able to have people staying for extended periods. Having this permission in place could prevent you using the property for longer stretches or retiring there full time. If done well, converting outbuildings or renovating an annex for your holiday cottage lets could be an excellent investment.
Find out more: Guide to property investment. But how much you can earn from letting out part of your home as a holiday let will really depend on:. The more desirable your accommodation, and the more popular your location, the greater your earnings are likely to be. Find out more: Guide to buying a second home. There are a variety of ways to list your home, from social media to listing websites and platforms such as Airbnb.
We have got some tips for renting out a holiday home. You will also want to do a degree of guest vetting, particularly if you will be sleeping under the same roof.
Remember: you do have a degree of control over the type of people who stay with you. For example, you can stipulate maximum group size and whether or not you are willing to have pets staying. You can also veto certain activities, such as stag or hen parties, should you wish. Find out more: Five steps to renting out your holiday home. You will also need to ensure the areas of your home that you are letting out are Covid compliant and that you are adhering to all the health and safety government guidelines.
This should include a Covid risk assessment that manages the risks faced by yourselves, your guests and any cleaners. Cleaning will be even more important than normal — any surface a guest will come into contact with must be cleaned and then sanitised. Risks can be further reduced by keeping rooms ventilated during the cleaning process.
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Advertising is necessary if you want a steady stream of guests. The following are your main options. Calculate your costs first, including advertising the property, cleaning, maintenance, insurance, and anything else that comes out of your pocket. Next, look to see what other properties similar to yours charge in rent.
Take into account the different seasons. Be willing to charge mid-week stays and weekend lets as well as full weeks. Shorter lets tend to be popular out of season and can boost your income. Charging too little is a bad idea for many reasons. It suggests there is a reason why your property is so cheap and may not attract your ideal holiday goer.
Instead, start off high and offer discounts and special offers if you have fewer bookings than you would like. As long as your property represents good value and has plenty to offer discerning guests, they will be happy to pay to stay there.
People want to feel pampered when they go on holiday, and if your property has an air of luxuriousness about it, you will find plenty of people who want to stay. Factor in increased demand during special events, too. For example, property rental prices in Edinburgh usually spike during the annual Edinburgh Fringe Festival and over New Year. In the world of holiday lettings, cleanliness is next to godliness. The property must be thoroughly cleaned before guests arrive. Once everything is clean and sparkling, make the beds with fresh, clean linens, add clean towels, soap, toilet roll, etc.
Open windows to let some air in. Light a scented candle or pop some fresh flowers into a vase. Your aim is to make the place feel welcoming when guests arrive.
Note: Do not leave lit candles unattended. Small touches like this cost very little but really make a difference. Nothing beats a small basket of goodies, such as locally made fudge, jams, and shortbread. Go the extra mile for your guests — it encourages them to leave positive feedback, which in turn, helps with new and repeat bookings. Remember, some guests will have travelled a long way, so they will likely be tired when they arrive. By making them feel welcome, their holiday starts off on the right foot.
Create a welcome pack for guests. The more information you provide, the more comfortable your guests will be and the less queries you will receive. Give your guests detailed information on how to find the property. The harder it is to find, the more specific you need to be, which includes listing key landmarks nearby and anything else that might help them find the property. Remember, not everyone has a sat-nav and not all sat-navs have accurate maps.
Be clear about when the property will be ready for guests. Be clear about when guests need to vacate, too, for much the same reasons. Tell your guests where to collect the key, either from you or a neighbour.
Another option is to have a secure key drop box somewhere on the property. As gas appliances can also emit carbon dioxide it is strongly advisable to also install carbon monoxide detectors in any rooms that have gas or oil appliances such as an oven or boiler. In February Scotland passed new laws that require homes to be fitted with carbon monoxide detectors in all rooms that have a carbon-fuelled appliance such as fires, boilers, ovens and heaters. Whilst these laws do not come into effect until February it is a good idea to ensure you are compliant as soon as possible.
In Northern Ireland the Building Regulations Northern Ireland requires carbon monoxide alarms to be mandatory when extending, renovating or building new homes with a fuel-burning appliance after 31 October In Wales, the Building Regulations requires properties to have a carbon monoxide alarm fitted when installing a new or replacing an old solid fuel heater.
Wherever your holiday home is, carbon monoxide poisoning can be fatal. To ensure you undertake your duty of care to take all necessary measures to reduce the risk of carbon monoxide poisoning you should make sure carbon monoxide detectors are fitted in all rooms where a gas, oil or solid fuel appliance is present.
Whilst not a legal requirement it is a good idea to test all alarms weekly or on each changeover. We recommend you having a log which is signed by yourself or your housekeeper every time the detectors are checked on each changeover.
Some holiday homes in a secluded location might have an oil supply if they are not on mains gas. It is also a good idea to inspect the storage tanks and supply pipes regularly to check for any leaks. You are also required to improve any safety measures that are identified in the assessment and to keep the risks under review. There are some useful guides: Do you have Paying Guests? As the owner of your property, you are likely to be best placed to understand what the fire risks might be, and how to control them.
If you are in any doubt, or have any questions, we recommend you speak to your local fire brigade who should also be able to help you. Whilst the law does not specifically state how often you should re-access your fire risk assessment, it is recommended that you review it once a year.
Whilst there is no legislation specifically surrounding the safety of log burners or open fires apart from the said mentioned fitting of carbon monoxide detectors , it is worth noting that in order to comply with the safety measures identified in your fire risk assessment it will be necessary to have your chimney swept annually this may also be a stipulation of your holiday home insurance , have an adequate hearth and ensure you have a suitable fireguard. Your risk assessment will need to take into consideration that some guests may not have real fires at home and you will therefore need to communicate with your guests how to use your fire safely.
In England it is a legal requirement to install a smoke alarm on every floor that is used as a living space. The law does not state what sort of smoke alarms you should have but the most reliable are those that are mains-wired and have a separate battery back up in case there is a power cut.
In Scotland there is new legislation regarding smoke alarms which comes into effect in February The new law states that all homes must be fitted with at least one smoke alarm in the room which is most frequently used which tends to be the sitting room , a smoke alarm on every floor in spaces such as landings and hallways and a heat alarm in the kitchen. The alarms need to be ceiling mounted, either mains-connected with a backup battery or fitted with a long-life battery and interlinked with each other.
All alarms must also be changed every 10 years, or sooner. All holiday home owners are responsible for ensuring that their upholstered furniture meets the requirements set out in The Furniture and Furnishings Fire Safety Regulations The regulations state that all upholstered cushions, pillows, furniture, beds, mattresses, headboards and sofa beds meet the set fire resistance standard.
This includes ensuring the upholstered furniture has a fire resistant filling material, the cover fabric passes a match resistance test and the cover fabric and filling material pass a cigarette resistance test.
It is worth noting that the regulations apply to both new and second-hand furniture but not to antique furniture made before Where a product is already subject to laws then the existing regulations will still apply.
However, if the General Product Safety Regulations go further than existing laws then the regulations will apply. As no formal testing is required it is up to you to apply common sense and check your products regularly.
For example, if something is damaged make sure you repair it, check for trip hazards, make sure furniture and wall fittings are secure, any cables are tucked away and there are no hazardous objects such as broken glass in the garden.
It is a good idea to keep a record of these checks to show that you have carried out a risk assessment should an accident occur. The regulations also require you to provide guests with any relevant information, warnings and instructions for operating products.
No matter how many notices you put up, or whatever your booking conditions may state, you are still liable for any injuries or fatalities to your guests if they occur due to your negligence. However, you can take out insurance to cover your liability. You will be classed as an employer if you have either a written or spoken contract with anyone who helps you maintain your holiday home.
This could include cleaners, gardeners, housekeepers or any seasonal staff. Whilst there may not be a legal requirement to have public liability insurance, if any guests had an accident which could in some way be attributed to the holiday home owner, you may be considered liable and left facing a very large bill. It is therefore strongly recommended that you take out public liability insurance. You will need to decide what level of cover you need. There is no legal requirement to have building insurance for your holiday let.
However, if you have a mortgage on your holiday home it is likely that your lender will require you to have buildings insurance. It is also important that your mortgage lender is aware that you will be renting out your property as a holiday let. The Disability Discrimination Act requires holiday home owners to have a written Accessibility Statement for their property.
An Accessibility Statement explains who your property is suitable for. Find out more about how to write your Accessibility Statement here.
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