C&G’s Guide: Pros and Cons of Holiday Rentals

With Summer around the corner, many people will be considering a relaxing sea or tree change. For many investors, short-term leasing is an effective strategy for building wealth and optimising their portfolio. This C&G blog unpacks the pros and cons of turning your investment into a holiday rental.

The Pros

Holiday homes offer the opportunity for high rental yields, especially if you have strategically purchased a property in a desirable location. Sweeping views and proximity to beaches and local attractions will often contribute to your investment’s success. The right property, with consistent occupancy rates, can generate more income on a short-term lease compared to traditional long-term agreements. Depending on your property, you may also enjoy tax benefits such as depreciation.

Holiday rentals also provide a dual benefit, allowing you to enjoy your property during a vacancy period. You may need to plan around peak holiday periods to maximise your investment’s potential.

The Cons

Holiday rentals provide guests with a comfortable home base on their travels. This means you may need to invest in furniture, amenities, gardening and renovations. You’ll also need to organise regular cleaning, upkeep and maintenance, especially if damages occur. Managing a holiday home is akin to running a business – you’ll have to ensure your guests are comfortable and looked after!

The property itself will incur costs such as mortgage repayments, council fees and insurance. This can be problematic if you’re not able to secure tenants to cover your property’s holding costs. In some cases, it may be worth engaging a local agent with thorough knowledge on how to market your property and secure reliable tenants.

With many years servicing the Bayside area, Chisholm and Gamon are your go-to experts for managing property. Do not hesitate to speak to our friendly team about your investment strategy – we’d be delighted to offer our expertise and guide you towards the best outcome.