Holiday Rentals | Overheads & Costs
Do you have a cottage to rent? Choice Cottages can advise on the costs of renting your house, so speak to the experts for your holiday rental home. There are many costs associated with owing a self catering holiday cottage to rent, both known and unforseen. Below we try to describe some of the costs you may need to plan for when considering your purchase of accommodation for holiday rentals.
Gross Revenue vs. Net Return…
The below examples of costs and overheads are indictaive and may not apply to all properties at all times, although every attempt has been made to cover most eventualities.
Buying your Holiday Home
It goes without saying that there are associated costs with purchasing and/or mortgaging a home for holiday let purposes, particularly if it is for purely commercial purposes, or where it is a second home.
Signing on fee and commission
To become part of our portfolio, you will need to agree to contract your property with us, as your sole letting agents. Our registration fee is £95, (only payable with your 1st booking) and our commission is highly competitive. Our annual renewal fee is £95.
Payment and booking process
Although this is not a cost, it is important to note. We deal with all booking and payment processes. We initially take a deposit from the customer and notify you of the full details of the booking and the details of the client. We also notify the Property Manager of the Booking Details on your behalf. We then take the remaining balance 10 weeks prior to the holiday. You will be paid monthly by electronic bank transfer or cheque on the 20th of each month for arrivals in the preceding month. We also send clients their booking information and arrival guidelines.
It may be that you will have to pay tax on the income from your Holiday Cottage. We could recommend you seek advice from a qualified accountant or tax specialist to clarify the potential costs, as well as the potential savings against income.
If you are going to employ a Property Manager rather than do the changeovers yourself, there will be costs associated for cleaning and linen. These costs will need to be negotiated with your Property Manager and will be largely dependent on the size of your property. Choice Cottages would be happy to supply you with a recommended list of Property Managers in your area.
There will be the obvious costs around gas, electricity, water and council tax. There may also be additional costs for broadband, digital TV, garden services, upkeep and pool maintenance; depending on your property.
Although we can implement a Damage Deposit, you may incur damages from time to time, or will need to replace items due to natural wear & tear. For this you will need to take out insurance and/or budget for the replacement of appliances or the like on an annual basis.
You may want to take out insurance for public liability and may be required to insure your home and/or it’s contents. (See our section covering this, later in this booklet.)
Most of properties have key safes ,which gives visitors / property managers access to the property, while preventing them from removing the latter from the home, or requiring multiple sets of keys. We can arrange installation by a qualified locksmith for £65. Alternatively, you are welcome to install your own.