Like the idea of investing in a holiday home, but want it to generate an additional income too? Here are a few tips to help you to make your holiday home a profitable venture
If you need to make your holiday home a profitable venture, this goal needs to drive your search criteria right from the start of your property search.
The property you are buying needs to appeal to your target market, not just you.
There are property features that become more important when you’re renting it out than if you’re just buying for yourself. For example, if you’re just considering yourself, you may decide to pay less for a property without a private parking space. However, for guests (especially in a town or city) this parking space can be the difference between making their booking with you or another property.
This brings us on to the issue of getting to the bottom of your criteria and sticking to it.
Stick to your criteria
It can be tricky to meet all the requirements you have. It’s often hard enough to search for a property that meets all your desires, let alone those of who will be also using the property with you, such as dependents, like children or elderly parents. On top of that if you want to rent the property out, there are also additional factors to consider.
Make sure you discuss the criteria fully before you organise viewings and make decisions about what is a deal breaker and what isn’t – and then stick to it.
When you see a property that steals your heart, but won’t really meet all your needs, you need to walk away. That’s when you’ll be glad you set your must-haves in stone from the start.
It can take more than a year to find your ideal property in France. Stay strong even when the going gets tough and you’ve convinced yourself you’ll never find the right property. You can’t change the key criteria that matter to you just because you can’t find a place that meets all those requirements. Keep looking.
By working with Home Hunts you can ensure that you have coverage of the entire property market in your target areas. The team can connect you with developers, private buyers, estate agents and off-market opportunities, so while playing the waiting game might be frustrating, at least its safe in the knowledge you’re leaving no stone unturned.
They can also offer you lots of advice on buying your perfect property and how to make buying your second home as stress free as possible.
Keep your rental market in mind
It’s important that you keep the needs of your target market in mind as this will be the key to future rental success.
“If you’re buying a villa in the South of France then a pool is usually important and if it’s a high floor then you need a lift,” says Tim Swannie, Director of Home Hunts.
“Are you aiming for holidaymakers, business people, golf enthusiasts or skiers – imagine what the most important factors are for them when looking for a rental property.”
If you are going to rent your property out, it has to be in a location where you can accrue enough bookings throughout the year to reach the level of income you need.
Bear in mind that while you might want a holiday home by the beach, many seaside resorts are popular during the summer season only and fairly quiet in winter. This could affect the location you wish to buy in and have an influence over where you look.
Cannes, for example, is renowned for its congress market and properties there – especially those within 20 minutes walking distance of the Palais des Festivals – can be rented out all year round.
“Towns and resorts in the mountains, such as the Pyrénées and Alps, also offer year-round rental opportunities,” says Tim. “Guests visit for skiing and snowboarding in the winter and for hiking and cycling in the summer.
In France, of course, Paris is always in favour and popular in every month of the year.
Run figures on every property you view
Create a “simulator business case” spreadsheet and use other resources, such as Airbnb’s insights, to run the figures and see what the potential outcome could be.
Overheads to include are: cost estimation of work; furniture or decoration, notary fees, tax (“habitation” and “foncière” in France); and maintenance. Factor in monthly costs, which will include: electricity, water, telephone/WiFi, changeovers, cleaning and gardening, and house insurance.
Easy to access
Whereas you might not mind driving for two hours to get to your beloved holiday home, often guests feel differently. Make sure that you’re not more than an hour from the nearest airport and that driving there is fairly straightforward.
Local bus and train links are also recommended. In France it’s useful to be near a TGV railway station and, if buying in France, try to buy in an area that is served by more than one airport as this gives more choice, especially during the mid and low seasons.
Home Hunts are buyer’s agents, we are here to help you to find your perfect property and make your holiday home a profitable venture. If you would like to speak to one of the team to discuss your needs or just to have a chat about the market, you can call us on +33 970 44 66 43 or send us a mail to email@example.com. If you just want to browse through thousands of beautiful French homes, visit our website at www.home-hunts.com keep up to date with our latest news at www.home-hunts.net or follow us on Facebook or Instagram.