The benefits of renting out your holiday home

Posted on July 13, 2012 by Guest Writer
Holiday Home living room

When people are considering the purchase of a holiday home, they are likely to be thinking about how easy it will be to jet off for a relaxing break now and then, with their very own accommodation to stay in. Being able to fill your oversees property with home comforts and really making a home away from home is another great reason to invest in accommodation, instead of paying out for different hotels and apartments every time you go away.

A key consideration for people when deciding to invest in a holiday home is whether they will get a good return on the property when they do decide to sell – effectively whether it is a sensible investment. People can improve their chances of making money from a property by making home improvements and sprucing up the place, but they can also ensure they are constantly making money from their investment by renting it out when not in use.

Renting out your holiday home is an extra money earner

Once you have invested in a holiday home, it is time to start making money from it. By allowing other travellers to rent out the apartment, house or villa, you have the potential to earn an almost constant income from the space. With the right letting agent, this is not a difficult thing to do and people can choose whether they want to rent it just to family and friends, or to open it up to other holidaymakers. If you have a property in an enviable location then the potential for earning through renting it out really is endless, and can no doubt fund a number of trips abroad for yourself.

Home exchanges offer plenty of holiday options for you

A concern for some people investing in a holiday home is that they are confining themselves to one destination, and as nice as it is, they might want to broaden their horizons and travel elsewhere. Generating income from their holiday home is likely to allow for the luxury of a few extra trips abroad each year, but there is another option – home exchanges.

Home exchanges allow people to swap with other holiday home owners in different destinations, so that both families get a trip free of accommodation charges. This gives holidaymakers the unique opportunity to travel virtually anywhere in the world, and all they have to do is give permission for another family to make use of their own holiday home. This means that owning a holiday home can infinitely broaden your travel horizons, with holidaymakers only having to foot the bill for travel and living costs.

Holiday home insurance will make sure any rental problems don’t break the bank

People who are worried about opening up their holiday home to strangers can achieve peace of mind by securing a good holiday home insurance policy. There are two aspects to insuring a property – buildings insurance and contents insurance, which means that should either the building or your possessions be damaged, you will be covered for it.

What’s more, if the property should be made uninhabitable through some incident, the holiday home insurance covers loss of rental income for bookings which were made and confirmed before the property was rendered uninhabitable.

Insurers prefer that holiday homes be occupied

While some holiday home owners may be worried that opening their doors to strangers could put their property in jeopardy, it is actually much more likely that something will go wrong if the holiday home is frequently empty for long periods of time. Allowing holidaymakers to stay in the property when you’re not around makes it much more likely that you will be alerted to any problems and can sort them out before they get any worse.

This means that insurers much prefer properties to be occupied, so renting out your holiday home could actually see premiums lowered.