Second Home. Rent out or holiday let?

Pennylane

We have had our offer accepted on a small house near us which we are buying, as we have paid off our mortgage on our own house. (Thanks to those who advised on here on my original thread:))

Not sure whether to let it out on a "permanent" basis or for holiday use.

I guess there are swings & roundabouts for both. But we are in an area which is a good holiday base and since the house is small, it should be easy enough to clean after holiday lets. I know we'd need to furnish it (it already has decent carpets and curtains) but again, because it's small it wouldn't need that much.

I'd be pleased to hear from anyone who does either and thanks in advance.:)

Pennylane

Anyone??:)

clutton_2

i would check with the local council that you dont need change of use for holiday lets, i know different legislation applies to them

PasturesNew

In many areas you need change of use/planning for holiday lets. You also need to look at the tax situation. Holiday lets, mostly left empty, are a scourge in holiday areas. Swathes of property completely empty for most of the year, locals unable to be able to rent as there aren't enough rentals - and those that there are are at a very high price because the landlords could have holiday let them and made more. It's killing many areas.

lagoslife

What is the market demand in your area, holiday lets or long term rentals?

If you still wish to use the property for weekend breaks, then holiday letting will allow this in between rentals. However, if it's let long term, you wont have access.

Holiday letting can be hard work, cleaning, dealing with bookings etc. with small returns. Plus there are the tax changes for holiday lets.

Long term letting can be a better option, but it depends on the market.

phlash

Mortgage conditions are different too.

I believe a simple BTL mortgages are easier to come by rather than trying to finance a holiday let.