A Guide to Holiday Let Costs
Starting a holiday let can be a profitable and rewarding venture. But in order to make it successful and...
by Janine de Lange / Owner
With its stunning beaches, quaint fishing villages and unspoilt countryside it is easy to see why so many people choose to holiday in Cornwall. It’s also no surprise that letting a holiday home in Cornwall can be a worthwhile financially rewarding venture.
In recent times, our holiday homes in Cornwall have benefited from exceptional occupancy and success, however there are now cultural, economic and environmental factors influencing booking trends across the UK. Whether you’re an experienced owner or new to the letting journey, we invite you to read our top 10 tips for letting a holiday home in Cornwall, to ensure your property reaches its full potential in the coming season.
Top tips and advice on how to achieve letting success.
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When buying a holiday home to let, it is important to choose a location which has appeal for tourists to attract a high volume of bookings and secure a good return on your investment.
According to our parent company Sykes Holiday Cottages, demand for Cornish Holidays in 2022 was particularly high, with Cornwall ranking as the second most popular region for summer getaways*. Booking data shows that Polzeath, Rock, Port Isaac and Carbis Bay all featured in the top 10 fastest growing destinations across the UK in 2022!
Some of the most popular requests when searching for accommodation in Cornwall are:
Coastal properties with sea views and within walking distance to a beach or those set in the countryside remain the top of guest’s requirements. In addition to this, properties with easy access to walking and cycle routes proved extremely popular.
Another influential factor in a guest’s choice of holiday home is its proximity to good facilities. Those situated within an easy reach, or better still, within walking distance to a pub, restaurant, shops and tourist attractions experience an increase in the holiday property’s desirability and booking performance! Cornwall has the best of all these amenities that attract visitors, which adds to its year-round appeal!
For more information on the most sought after, up and coming locations in the county, read our insider’s guide to the top 6 places to buy a holiday home in Cornwall.
Not only does the addition of desirable features give a holiday cottage a competitive edge over similar properties, it also allows you to increase your rental rates and maximise your income.
Time spent researching the features that are in demand and what the competition are offering, can provide you with the opportunity to distinguish yourself from other holiday homes in the area.
If you are considering investing in a hot tub, this will certainly make your property stand out from the crowd. We experienced a 36% increase in people booking holiday homes with hot tubs in 2022.
With energy prices at the forefront of everyone’s mind, a wood fired hot tub is the ideal solution to providing this sought after amenity without the soaring costs.
With the increase in flexible working options since the pandemic, there are certain people who now look to work from their holiday accommodation.
Good Wi-Fi is a priority for 29% of us and around 38% of Brits admit they work whilst on holiday, therefore if your property has strong Wi-Fi, and possibly a separate quiet area with a desk, your home will be all-the-more desirable.
A garden or outdoor space is a key component to securing bookings. Not only for those travelling with pets, but for families and couples too. In fact, according to the Sykes Staycation index, a garden is one of the most sought-after property features, so it’s worth investing in your holiday home’s outdoor living space. We recommend adding sturdy garden furniture, an outdoor dining set and BBQ facilities so guests can make the most of your outdoor space during the summer months.
Considering that the most in demand local amenities for visitors were coastal locations, near walking and cycling routes, why not tailor your outdoor space to make life easier for guests. From providing bike racks, storage for water equipment and place to store muddy shoes. These don’t have to be costly addition, but will allow guests a hassle-free break, and in turn encourage repeat bookings and sterling reviews.
Adapting your holiday cottage to be more child friendly could significantly increase the appeal of your holiday home to guests. With family holidays representing almost a third of the bookings made in 2022, it comes as no surprise that making the most of this ever-growing market is appealing to many. Simple additions such as a high chair, travel cot and bathroom stool would reduce the amount of luggage a family would need to bring with them.
Understanding what will give guests the best experience when staying at your property will not only encourage repeat business but will make your property appeal to more guests. Other popular property features which guests look for in a holiday home, include off-road parking, a dishwasher and an open fire.
For many, pressures on household budgets have made holidaying closer to home more appealing than ever, with the average staycation budget now the lowest it has been in recent years.
Amidst soaring inflation and its unavoidable impact on UK households, it’s unsurprising that there has been a rise in the ‘save-cation’ holiday trend our research found that 35% of guests holidayed at home this year due to budget pressures, and 44% of holidaymakers will be spending less on their upcoming holidays than in previous years.
This may not be entirely bad news, as with pressures on household budgets, demand for more expensive holidays abroad may dwindle and less costly holidays closer to home may be more appealing than ever. The impact of the cost-of-living crisis has an upside, in that 57% of us agree it’s more convenient to go on a UK holiday break.
To encourage bookings during the low-season, using initiatives such as accepting last minute bookings, short lead time bookings and dynamic price reductions are a practical solution to encourage guests to make a ‘save-cation’ a viable option.
First impressions are invaluable, so providing a comprehensive welcome pack is one of the easiest and most effective ways to welcome guests to your property, and help them to settle in. It’s an opportunity to set your property apart and an effective way to quickly answer all your guests’ questions, ensuring an enjoyable, stress-free stay.
Providing a convenient way to access all the necessary and useful information your guests need during their holiday will help to contribute to a great first and lasting impression. We often take for granted how complicated everyday appliances are, especially for someone that is unfamiliar with them. Avoid unnecessary frustration by providing information on how to program the oven and where guests can find the heating controls.
A welcome pack is effectively a manual to a property and ensures that your guests remain relaxed during their stay. Creating a welcome pack is also a good opportunity to provide information on the surrounding area, as well as other useful information on amenities, contact numbers and other necessary information.
You could also choose to provide a small hamper of delicious Cornish treats such as a cream tea or other locally sourced goodies. If your property is pet friendly, a few extras to make your four-legged guests feel at home will always be well received.
Read our comprehensive guide on how to put together a guest information folder for your holiday home.
Since the pandemic, it’s not just short-breaks and last-minute getaways that are more popular. ‘Paw-cations’ have increased, with 35% of all bookings now including dogs. This is a rise of 2% from last year, as Covid-19 has played a part in an increase in dog ownership.
If you’re looking to make the most of this continually growing market, it is certainly worth considering allowing four-legged guests. By allowing a dog, you are opening your property up to a much larger group of holiday makers, and could also extend your season of bookings by appealing to couples and those looking for walking getaways outside of the peak periods.
Accepting pets is also a great way to increase your income per booking, as you can add an additional charge per pet. Although we would advise owners to consider more frequent deep cleans if they accept pets, this supplement more than covers those costs.
As an owner, understanding what to charge for your holiday let is an important part to its success. How you price your holiday let is a key factor in how much investment you can return. This is where working with a holiday let agency can really come into its own.
Here at Cornish Cottage Holidays, our Revenue Management team use our unique and dynamic pricing tool to help holiday let owners earn as much money as possible from their bookings. Rental rates are constantly changing to keep in line with seasonal trends and customer demand. Successfully adopting a dynamic pricing strategy would be very difficult on your own.
Using a dynamic pricing tool like our ‘income maximisation’ system is a great way to boost your revenue. It works by automatically adjusting prices in line with demand.
In times of high demand, prices will inflate, whilst in periods of low demand we will make reductions. This results in the maximum number of bookings for the owner, with the best income possible across the year.
Across the UK, people are becoming more environmentally conscious; whether it’s the choice to shop locally, use less packaging and considering how their lifestyle choices affect the environment. This growing trend known as ‘eco-tourism’ has created a niche selling point and as a result, many are considering how to make a holiday home eco-friendly.
Particularly in the current climate, it’s worth considering how environmentally friendly your property is. Not only could making small changes help reduce your running costs over the winter, but it could increase your property’s desirability to guests.
In our recent survey, 26% of Brits said they’re more likely to consider a UK break now due to concerns for the environment, and 20% said they wanted to book more sustainable holidays.
Electric car chargers are also a great way for owners to make a property stand out from the crowd. With increasing consumer demand, greater availability of electric models and government support, electric car sales have been growing strongly. If you want to welcome this growing trend of traveller, then considering an electric car charging point for your cottage is a top tip.
For other helpful advice, read our article on how to make your holiday home eco-friendly.
It goes without saying that furnishing and maintaining a property is vital to letting a holiday home. Creating a stylish, well-presented and spotlessly clean interior is a crucial part of your holiday lets success and key to making guests feel welcome, happy with their booking and likely to book again.
Whether your property is a small cosy bolthole, or a grand sprawling country estate, there are always improvements or additions that can make a difference to ensuring your property remains a desirable location.
The most successful holiday cottage owners are continually making improvements to their properties by reinvesting back into their holiday let business. This can be as simple as adding desirable features, renewing furnishings, or decorating on a regular basis to keep the property looking at its best.
Find out more about the benefits of using a holiday home management company in Cornwall to take care of the many key responsibilities and tasks like housekeeping, changeovers and maintenance that are vital to a letting journey.
A top tip to running a successful holiday let is understanding the legal requirements that must be adhered to for the safe running of your business. Whilst some rules and regulations might be obvious, others are less so.
Planning permission is typically not needed if you’re considering buying or running an existing holiday let. There is however a likelihood you may have to apply for planning permission if you’re starting a new business, converting or extending your property. If any of these apply, you may need to apply for a ‘change of use’ for your property.
For more information, read the official government guide to planning permission or visit the planning portal to find out whether you’ll need an application.
When letting out your property, you have a duty of care to your guests to provide safe accommodation and do your best to minimise the risk from potential hazards.
Part of this process is to inspect your property regularly and conduct safety assessment. It’s recommended to include this information in your welcome pack so that guests have the details on any issues they need to be aware of as well as instructions on how to safely use appliances and facilities.
Running a successful holiday let business has a few unique differences to residential properties and will require specialist mortgages and insurance. Holiday let insurance is a unique policy which includes building and contents cover, as well as loss of potential income and having public liability insurance.
A traditional residential mortgage will not be suitable for a property that is let on a short-term basis. A specialist holiday let mortgage is required. To find out more about holiday let mortgages, read our guide to financing a holiday home.
We’ve provided plenty of addition guidance and useful information for owners to help understand what holiday let legal requirements are needed.
The key to your holiday let success is finding the right holiday letting agency for expert advice and support. Cornish Cottage Holidays specialise in the self-catering holiday market, and have a team of industry experts who strive to help holiday home owners run a profitable and successful business.
With a local office in Redruth, plus larger support team at our national parent company, Sykes Holiday Cottages, we offer a winning combination of both local and national marketing. We really get to know you and your holiday property, allowing us to offer an incredibly personal service.
With over 600 self-catering cottages located throughout Cornwall, all inspected by us, we have the expertise and industry know-how to help you run your holiday letting business. For more information on how we can help, read our blog on the benefit of using a holiday let agency in Cornwall.
We want running a holiday home business to be as enjoyable and effortless for you as possible. We’ve created some helpful guides to answer any queries that you may have. Simply visit our Owner Advice Page to find out more.
Request your FREE owner’s pack or give us a call on 01326 336773 (option 2) today.
*Statistics provided by Sykes Staycation Index 2022
Please note: As a holiday letting owner you are responsible for compliance with health & safety laws, regulations and guidance, and for having suitable insurances in place (not Sykes Holiday Cottages or its brands (Sykes)). From time to time, Sykes shares information with you on the topic of health and safety and insurance. When it does so, it is not providing you with advice (legal, financial, tax or otherwise); please seek your own as you see fit. In addition, it is not making any representations or warranties about the information being complete or free from errors or inaccuracies. Sykes shall not be liable for any loss or damage arising under or in connection with your reliance on it.
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by Janine de Lange / Owner
I’ve had the privilege of living in the beautiful South West since 2010, and in my opinion there’s no better place in the worl...
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