Maximise your Subletting Earnings

With low interest rates giving poor returns on bank savings you may be considering subletting a holiday home as a way to earn additional income. Or maybe you are thinking of buying a holiday home to enjoy with family and friends but want to help cover your ongoing costs through letting it out when you aren’t using it. Either way the income that you can expect from holiday letting is variable so we have put together our top tips for maximising your return.

Choose your Location Wisely

To be in with the best chance of getting a good level of holiday let bookings you need to choose an area where demand for static caravan accommodation is high. Choose areas with a strong and consistent tourist trade and if you are planning to let out during the shoulder seasons you should also consider what the shoulder season trade is like too.

Peter Bull Resorts are all on the North Coast of Cornwall. With its beautiful beaches, rich culture and heritage and top-quality food and drink, Cornwall is one of the most popular UK holiday destinations in the UK. At the British Travel Awards 2017 it was once again voted the Best UK Holiday Region and Visit Cornwall have recorded an increasing demand for holidays to the area :

  • 2016/17 saw the largest growth in the youngest (16-24 years) and oldest (65+ years) age groups visiting the county compared with last year.
  • At 27%, 2016/17 saw the highest proportion of adults visiting the county with children for the five-year trend period since 2012/13.
  • 2016/17 saw a year on year increase in secondary/additional holiday taking and the highest proportion across the analysis years.
  • 84% of visitors said they are likely to visit Cornwall again.
Sunset in Cornwall

What Type of Caravan?

If you are buying a caravan or holiday lodge for your own use you definitely need to make sure that it meets your needs first. However, the type of caravan that you purchase can also have an affect on the number of bookings that you receive as it will dictate what type of customers you attract.

If you are planning to let your your static caravan mainly during the school holidays it might be worth considering a three-bedroom caravan with an additional toilet or bathroom as these book out well with larger families who tend to stay for a full week or fortnight. In the shoulder months we tend to see the small units being more popular as the market is more geared towards couples and very young families.

Higher quality static caravans or holiday lodges with added luxuries such as freestanding furniture, en-suites and dishwashers are also worth careful consideration as holidaymakers are increasingly more discerning and often looking for the highest level of luxury that they can afford. Luxury static caravans or lodges are less common place within existing static caravan hire fleets and so there is high demand but a low level of supply. This this can work well for sublet owners who can attract repeat and loyal customers and also reduce the need for promotions or reduced tariffs.

The added level of luxury will also increase the booking tariff so although your initial outlay will be increased, you will get more income per holiday let for the same ongoing costs as a lower quality caravan.

Luxury Static Caravan

Add an outdoor space

When we think of holidays we often imagine relaxing outside more than we consider what our bed or bathroom will be like. Visions of sipping wine on a balcony can be met by a static caravan with the addition of a smart decking area. The decking will make your static caravan more attractive to holidaymakers and will command a higher tariff.

Make the Best Weeks Available

Whilst static caravan accommodation has a wide and varied market it remains most popular with the family market, as it still provides one of the most affordable holiday options available. Therefore, if you are able to make your holiday let available for the main, peak holiday periods you will maximise your earnings for the year, these include the 6 weeks summer holidays, Easter and Whitsun week but you should also consider providing availability for the February and October half terms.

Holidays taken in these periods also tend to be longer in duration so achieve a good tariff with less changeover fees and charges. Bookings in the shoulder periods are more likely to be shorter breaks so although you receive a higher per night tariff there are more changeover fees involved.

Holiday Home Owners Cornwall

Don’t Miss the Start of the Booking Season

Arguably the booking season starts on Boxing Day as we see a spike in online searches for holidays and an increase in bookings which generally lasts right through until the end of January. At Peter Bull Resorts we also offer a low booking deposit for any bookings made before the end of January to make it as easy as possible for people to secure their holiday early. These bookings are full tariff bookings so you want to make sure that you are in a position to make the most of this booking season.

Tax Relief

All of your expenditure on purchasing a holiday lodge or static caravan could qualify as a basis for tax relief if you meet three occupancy conditions which will allow your holiday home purchase to be considered a Furnished Holiday let. This money could be offset in the year of purchase or subsequent years to reduce your holiday let business’ net profits and therefore reduce taxes paid on any profits made through letting to as little as nil. For more information on this download our fact sheet or book an appointment with us to discuss further.

Couple looking at finances

Make use of a Holiday Letting Scheme

Whilst you can manage your own holiday let you may find it more cost effective to use a subletting scheme, which will also help you meet the occupancy conditions necessary to be considered a Furnished Holiday Let. 

When you use a holiday park subletting scheme you are getting the same expertise in marketing and revenue management that they use for their own business as well as a much wider reach thanks to the larger marketing resources and budget that they have at their disposal.

If you are interested in subletting your holiday home or purchasing a holiday home to sublet make an enquiry using the form below or give us a call on 01637 852000.

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