A second home that the property owner rents out for holiday vacations, temporary housing or corporate travel for less than 30 days is termed a vacation property, holiday home, or holiday cottage. The property owners may rent the holiday home themselves or have an agency do it for them.
Advantages of a holiday home
Owning a holiday home can be a good asset because of the potential for earning extra income. Many people who love to take long vacations are always looking for furnished homes they can rent for a short time.
Across the United Kingdom, you’ll find various holiday cottages in different destinations. Renters can choose from a variety of homes. Big houses to rent for a large family or group or small cottages suitable for a few people are available from rental agencies. It is more convenient to use a trusted rental agency since they hand pick the properties they include in their listing, ensuring that you get all the features and amenities you need.
A home away from home
It may be an often-used saying, but this is actually what you want when you look for a holiday home. Because of the rising competition in the UK, homeowners make significant improvements, so their properties become more appealing to renters. A holiday home offers accommodation similar to the standard of a hotel, but since you are renting the entire home, you have more freedom, just like you are in your own home, albeit with more amenities to make your stay comfortable, convenient and enjoyable.
Legal and financial implications
When the owner of a furnished holiday home in the UK meets specific conditions, they can enjoy tax relief.
Currently, they have to meet these conditions:
- The commercial letting to the public should be available for 140 days within 12 months.
- The property should be let for a minimum of 70 days within a period of 12 months.
- The total length of long-term stays should not go beyond 155 days within a 12-month period.
- If a furnished property in the UK is vacant for much of the year, the owner must pay tax in full. In Cornwall, they can get a 10% discount from their council tax.
Since you will be allowing other people to use your vacation home for a short period, you should consider your property’s safety.
- Ensure that you know the regulations for short stays.
- See that you have house rules in place, whether you rent out the place yourself or have signed with an agency.
- Make sure that you require a deposit against damage and breakages and a formal written contract.
- Secure items of personal or sentimental value. Consider placing them in a separate storage room or lock them securely in a cupboard.
- Consider the value of signing up with a specialist letting agent since they have the experience of taking care of the entire process, including marketing and meeting with possible renters.
- Get professional advice regarding rent, which usually depends on the ongoing market rate, the season, location, condition, and type of holiday home you own.
If you are new to the holiday home business, make sure that you get professional advice and learn all the requirements, tax liabilities, and laws that govern the industry.