Holiday Rental Areas in the UK: Top Tips for Investing in Property
Investing in holiday rental properties is ideal for those looking to combine their love of property with a steady income stream. There’s no better time to invest in property than the pre-festive season. The lead-up and aftermath of Christmas are peak times for landlords, with many renters preferring to spend the season away from their usual home to avoid stress and scrutiny. There are plenty of benefits of investing in rental properties – but how do you go about choosing the best holiday rental areas? With so many different places to choose from, it can be tricky to know which ones will give you the greatest returns on your investment. So if you’re thinking of investing in holiday property this year, take a look at our top tips below:
Know your market
The first step towards identifying the best holiday rental locations is to know your market inside and out. For example, if you want to target the growing millennial market, you’ll need to know which locations are most often favoured by this group.
Once you know what your ideal customer base prefers in a holiday rental, it’ll be much easier to identify the best locations to invest in. What kind of holiday rentals do the majority of your customers usually prefer? What are the most popular holiday destinations among your target market? The more you know about your market, the better equipped you’ll be to target the best locations for investment.
Find the ideal location
The first thing you’ll need to do is decide which areas you want to focus on. Are you solely interested in targeting domestic holidaymakers, or do you also want to attract overseas tourists?
Depending on your holiday rental property type and the area you’re looking to invest in, you may be able to attract both domestic and international renters. Of course, some areas are better suited for one type of customer or another. If you want to attract overseas tourists, you’ll want to think about choosing locations that are highly desirable for this market.
Beachfronts, for example, are a very popular choice for overseas tourists, so coastal towns and cities are great places to start when searching for the best areas to invest. If you want to target domestic customers, it’s important to remember that people prefer different holiday destinations at different times of year. If you want to attract customers year-round, it’s important to know what times of the year are best for each location.
Choose the right property type
Once you’ve decided on the best holiday rental locations to invest in, you’ll also need to decide which property type will give you the best returns. There are a wide range of property types available to you as a holiday rental investor, including:
- Holiday homes
There are plenty of factors to consider when choosing the right property type. Such as your budget, the location, and the type of clientele you’re targeting. For example, apartments are often lower cost to buy than other property types, making them a great choice for first-time holiday rental investors. Meanwhile, a village or complex is great if you want to focus on a more high-end clientele by offering more amenities.
Don’t forget to think about amenities
While you’re deciding which property type to invest in, don’t forget to think about the amenities available at each location. Some locations will only allow a certain type of property to be built in that area. This is important to keep in mind when choosing the right type of property for your investment.
For example, if you want to invest in a holiday home in a rural area, you’ll likely be limited to buying a detached home. You’ll also need to consider additional factors, such as the proximity to nearby attractions, shops, and transport links. These are all important factors to think about when choosing the best areas to invest in. They can all have a big impact on the success of your holiday rental business.
Think about long-term returns
While it’s important to choose the best holiday rental areas for short-term gains, you also need to think about long-term returns. It’s important to choose locations with a steady rental demand. As well as areas with a high potential for value growth.
For example, you’ll want to avoid areas that are at risk of flooding. Or even those that are located close to areas prone to natural disasters. You’ll also want to avoid areas with a high number of rental permit rejections. This will help to ensure that the long-term value of your investment remains high.
The best holiday rental areas are often in high-demand locations. This means that there will be plenty of renters looking to book a property for their next vacation. It can be a very profitable business, but it does come with a few risks. There are plenty of benefits to investing in holiday rental properties. But it’s important to choose the best areas to invest in. By following these tips, you’ll be able to identify the best locations for investment. You will also be well on your way to earning a steady rental income throughout the festive season.