Investing in rental property is always a great financial move. But if you’re thinking about renting your property out as a holiday home, there are extra factors which you will need to consider. Holiday homes come in all shapes and sizes and no two holiday home businesses are alike. Prospective holiday home business owners will need a business plan, a financial plan and a personal portfolio of great ideas for their company.
Planning Your Business
Planning and research are the building blocks of business success. The more research you do, the more likely it is that your company will develop and grow. When planning your holiday home business, this means knowing as much as possible about:
- Your target locations
- Your target population and local tourism statistics
- Roads – accessibility, pollution, sight and sound, and condition
- Local sites of interest
- Local climate and weather records, including anything which might affect your property such as flooding.
- Local crime statistics.
Not only will the information you glean from researching these points affect the likelihood of your business succeeding, but they might also affect your business financially in the long term. For example, flooding and crime will impact upon your insurance premiums, whilst the presence of a busy motorway near the property might mean you’re more likely to attract single-night business lets than holidaymaking families. The easiest way to source this type of information is to go through a professional holiday home company, such as South Lakelands Park Ltd, which provides prospective buyers with all the information they will need.
Financing Your Business
Unless you already have some funds tucked away, you may need a little help starting your holiday home business. The first place you should go to is your bank, as there are many different types of loan available for people looking to start their own businesses. However, an essential part of the process of applying for a business loan is to draw up a business plan which you can use to support your application.
Drawing Up a Business Plan
A business plan can be as complex or as simple as you would like, but it’s important to make sure you’ve covered as much ground as possible. Many prospective holiday home owners choose to use a professional business advisor for this purpose, as such an individual will help to make sure that you are fully aware of all potential risks before you enter into any agreements.