Airbnb or Long term let?

Newheight13

Big gamble…

I’m unsure whether to take on a mortgage as as a BTL or Holiday let. I have been offered a good price on the property and both options do well in its location. I think if it’s a flop after a year then I’ll just sell up and take the hit. As this could essentially be a flip, Is there a safer route - BTL or holiday let?  

Bigphil1474

Holiday let will make more money depending on location, but might need more work on your behalf. If it has potential for all year use, then it could be a money maker. If it's basically a summer holiday place, the season might be limited. BTL will be a more steady and reliable income, and possibly less work, and there is high demand for rented properties (depending on location). Worth considering whether a holiday let may be subject to legislation or local rule changes in future e.g. councils upping council tax on holiday lets etc. 

Personally, I don't gamble, so would take the least risky option - BTL, Holiday Let, or don't buy in the first place.

gazfocus

The problem with holiday let is there are over 70 pieces of legislation that you have to meet to do it all above board and it’s changing all the time. 

You also need to furnish the property with relatively decent (comfortable) furniture and furnishings and then if it becomes a flip, what will you do with a house worth of furniture you don’t need? 

That being said, we were selling our house with the intention of buying a renovation project to turn into a holiday let but our sale fell through so had to withdraw from the purchase. We are gutted but now have some hopefully long term tenants in the house we were selling which at least is regular income without the need to do changeovers/cleaning/dealing with entitled guests demanding xyz every five minutes

Murphybear

Are you in an area that is popular with holidaymakers such as Devon or the Isle of Wight?  Properties in these places do well as they are great for the off season.  When we were looking for a rental in Devon we saw many which were “winter lets” for 6 months then back to holiday lets for the summer.  That’s something else to consider.