Holiday cottages to let | Income sources
We offer a list of opportunities below whereby you will be able to grow your investment, pay taxes more efficiently, all while we maximise your revenues. Conveniently, we also protect your income and cater for damages. So if you have cottages to let, Choice Cottages can help maximize your property income and advise on additional sources of revenue, when letting your holiday home.
Revenue streams
Equity of your Holiday Cottage
Dependent on the economic climate, it would be reasonable to expect that your Holiday Home Investment would increase in value and provide equity over time so that ultimately you make money from your second home. This is particularly true if you buy in recession-resistant tourist hotspots.
Booking Revenue
Owners can enjoy considerable income from letting out their Holiday Cottage and dependant on the area / property size, this can more than cover your mortgage repayments. It is certainly not unheard of for Owners to use the surplus income from their Holiday Cottage to fund the purchase of an additional Holiday Home over time. Choice Cottages’s expert team will proactively work with you on the income potential of your home. Every property is different, but properties achieving in excess of 20 bookings per annum, will earn on average between £7000.00 (for a 1 bed property) to £50,000.00 (for a high-spec 6 bed property). *See our average revenue predictions by property size in the booklet.
Add to Basket items
Items including Pets, WiFi, Travel Cot, High Chair, Beach Towels, Bath Towels, secondary Firewood Supply and where applicable, Hot Tub usage – are all Add to Basket Items, for which you will receive the revenue and which will help offset your running costs. (Note: Some Owners elect to make some or all of the Add to Baskets Items as Inclusive. The latter is becoming the trend, when it comes to WiFi and Towels.)
Tax Deductions
Many costs you incur, such as mortgage interest and our agency fees can be claimed against pre-tax earnings. We could recommend you seek advice from a qualified accountant or tax specialist to clarify the potential savings.
Owner Bookings
As the Owner of the property, you and/or your family and friends will benefit from Owner Bookings at your Holiday Home and for which you will ‘pay’ considerably less than you would have letting a Holiday Cottage or for a Hotel stay. (Note: Choice Cottages do not levy a charge to the Owner for an Owner Booking. We are also very flexible as to the weeks you as the Owner reserve, provided there is not already a Booking in place and that you give Advance Notice.)
Income Protection
Cancellation Plan
We implement a holiday Cancellation Plan, which is payable by the customer and will eliminate any financial loss to you if a holiday is cancelled. The scheme covers serious illness, bereavement or redundancy.
Damage Deposit
We can implement a Damage Deposit to a maximum of £100, which is payable by the customer on receipt of proof from the Owner and/or associated invoices relating to the damage. For larger damages, the Damage Deposit serves to assist in covering the Owner’s Insurance Excess.
