Whether it’s a typical or luxury rental, there are many factors to consider before offering your Cotswold property as a holiday let. Local council rules, taxes, hosting fees, and Covid-19 safety standards must all be considered in order to decide if it is worthwhile for you.
It’s possible to use companies like StayCotswold or other holiday rentals websites to help you pay off your mortgage and even sooner, but it isn’t for everyone, and it’s vital to understand the local rules and limits.
You may be thinking about leaving your entire home while travelling to avoid paying for accommodation or simply renting out a spare room in your house while you are living there.
You’ll also need to verify that your local council, mortgage lender, and house insurer will allow you to rent out vacation homes and ensure you understand the implications of your tax return.
How much could I earn with a holiday let?
You may set the nightly charge for your visitors when you use vacation rentals. Your pricing may be changed at any time and varies from night to night, season to season. Some hosts charge a greater nightly rate on weekends and a lower one during the week when fewer people are travelling and more places are available.
- The typical UK host makes £3,000 per year hosting for 36 nights per year.
- Rates vary hugely depending on location and seasonal demand from tourists.
Be aware that, depending on the city, you may be required to collect local tax or Value Added Tax (VAT) from your visitors.
Planning issues
If you want to rent out or offer short-term sleeping accommodation in a residential property, check local rules carefully. If you wish to provide temporary sleeping facilities in a residential property, you will need planning permission unless the use is classified as a “material change of use.”
In London, the government just made an exemption available to allow for short lets without planning permission as long as the total number of nights does not exceed 90 in a calendar year and as long as the property owner pays council tax.
However, even in London, particular homes or areas may be excluded from the exemption by local planning authorities, so you should verify this with your council.
Mortgage trouble
Although not every mortgage lender will allow you to undertake short-term rentals, things should get better in the future.
Speak with a mortgage broker for up-to-the-minute information on which lenders are most receptive to short-term rentals as policies change all the time.
Listing my home and vetting guests
When advertising your home, be sure to note which rooms are accessible to guests and which are off-limits.
Good photographs are essential. Professional pictures can be worth the investment to showcase your home at its finest.
Make sure you contact potential guests ahead of time and read their ratings from previous hosts to ensure that you know what kind of holiday they’ll be on. There’s a world of difference between a couple who wants to relax and unwind and a group of pals on a stag or hen party.
If you’re looking to rent out your property in the Cotswold area, why not Visit StayCotswold to find out more?
