Investing in a property can be an exciting venture, but when it comes to maximising your returns, the decision between using it as a holiday let or renting it out can be a daunting one. Both can be profitable options, but you need to weigh up what will work best with your property and your unique circumstances.
With our experience as both a holiday let management service and also a lettings management agency (for those renting out properties on a longer term basis), we can give you balanced advice without bias. Let’s delve into the advantages of both approaches to help you weigh up your options.
Holiday lets: flexibility and financial potential
One of the standout advantages of opting for a holiday let is the flexibility it provides. By renting out your property on a short-term basis, you retain the freedom to use it for personal holidays. For properties in renowned holiday spots, like in Suffolk, this brings a best-of-both-worlds solution.
Moreover, holiday lets often offer higher potential rental income (subject to occupancy levels) than long-term rentals. Holidaymakers are often willing to pay a premium for the opportunity to stay in a fully furnished, well-maintained property that provides a unique experience. With David Burr’s holiday lettings management services, you can tap into this growing market while benefiting from our expertise in marketing, booking management, and ensuring a seamless guest experience.
It should be taken into consideration that holiday let investments are typically subject to seasonal changes in demand and as the owner you will remain responsible for utilities and council tax or business rates. In the winter months, when energy use is high and booking numbers can be lower, we keep a close eye on the marketing price and length of stay to maximise your yield as much as possible.
Renting: stability, consistency and long-term gains
If you prefer a stable and more predictable income stream, long-term rentals can be an excellent choice. You benefit from the assurance of a regular rental income, which can help with financial planning and mortgage payments. Tenants are typically responsible for utility bills, so they are more likely to use them responsibly.
Another advantage of long-term rentals is the potential for longer occupancy periods. With a stable tenant, you can minimise the costs and effort associated with frequent turnovers, such as cleaning and property inspections.
David Burr’s rental management services can assist you in finding reliable long-term tenants, handling maintenance requests, and ensuring that your property is well cared for throughout the tenancy.
Downsides with renting include limited flexibility, you will lose the ability to utilise the property yourself as of course it will become your tenant’s home. While rare, there may be a risk of late payment of rent or property damage but our management department thoroughly reference tenants to mitigate this risk and our fully managed service provides regular property inspections.
