What are the hidden costs of buying a holiday home?
When searching for your dream home away from home, you may not spend much time thinking about the ongoing costs of maintaining a holiday home. However, it's important to factor in these costs, as they can add up quickly.
The cost of keeping your holiday home well maintained
While your holiday home insurance will most likely cover mishaps leading to accidental damage, wear and tear will not be covered. This means that if you do want your home to be kept in pristine condition and it is being used lots, you'll need to consider the cost of fresh coats of paint and deep cleaning, from time-to-time.
Holiday home security tips
Any property that is less frequented than a primary home has a higher risk of burglary. This is one of the reasons why a standard home that is empty for more than 30 days will usually require unoccupied home insurance.
Renting out your property can help to reduce this risk, but comes with other risks such as key management, burglars being able to easily scout out the coming and going of guests. With this in mind, it' extra important to take precautionary security measures when it comes to your holiday home. To avoid being unable make a successful claim in the event that the worst doe happen, make sure that you understand the ins and outs of your holiday home insurance policy - and if you're unsure about anything, speak to an adviser.
Ten Tips to deter burglars from your holiday home
- Keep your garden well maintained
- Install timer switches outside your front door and any paths leading up to the house - this will put off anyone from snooping around at night
- Ask a neighbour to remove any mail
- Consider installing a safe somewhere concealed within the property
- Make sure all window and doors feature suitable locking mechanisms
- Consider installing a smart lock on your front door to reduce to risk of keys going astray and falling into the wrong hands
- Consider installing an alarm system
- Installing a motion detector inside the house to alert you to any movement at unexpected times
- Use smart lights or timer activated lights to give the illusion that someone is inhabiting the house even when it's empty
- Don't leave any spare keys hidden outside the property
Gardening advice for your holiday home
When visiting a prospective holiday home, you may be drawn in by a wonderful mature garden or a swimming pool, but it's important not to forget about the large ongoing costs that accompany these amenities. Swimming pools, for example, are notoriously expensive to maintain. However, if you're renting out your holiday home, the premium people will pay for a pretty garden or pool may negate these ongoing costs.
Depending on the plants and terrain, you may wish to hire a gardener to maintain your garden weekly, fortnightly or even only monthly.
Swimming pool maintenance costs
If your holiday home features a swimming pool, these can come with fairly hefty maintenance fees that you'll need to factor in, including:
- Filter pump running costs
- Heating costs, if you're opting for a heated pool
- Water costs
- Chemical maintenance costs
The costs of renting out your holiday home
If you're planning to rent out your holiday home, this will inevitably lead to more maintenance costs than you'd experience otherwise - but on the other hand, can result in a win-win situation in which your rental income covers overall maintenance costs - and more.
If you'd rather outsource the management of renting out your holiday home to an property management agency, you'll need to factor in these costs too.
How much commission should you pay a holiday letting agent?
This can vary considerably depending on where you holiday home is, but it is not uncommon for a holiday letting agent to take up to 25% from each rental.
Although this may seem a large chunk of your income, once you've factored in the convenience and a (hopefully) guaranteed good service, you may find that this extra expense is worthwhile in the long term, as it'll free up your time and should result in better guest satisfaction and therefore more bookings!
Holiday home rental cleaning costs
Another factor to consider is the cost of keeping your home clean and tidy. If you're unable to clean and tidy your holiday home after each stay, you'll need to employ someone else to do the job. These costs will vary by location and it's important to factor them in when setting rental rates and forecasting the profit you'll make from renting out your holiday home. Many short-stay rental platforms, such as Airbnb or Homestay allow you to pass these costs directly to the guest.