Why do people let their holiday homes?
January 27th, 2009 by Rachel Newcombe
If you own a holiday home and let it out, then what are your reasons for doing so? There may be a number of reasons involved in your decision to put your holiday home on the lettings market, not least the desire for an extra income. According to a recent survey of over 3,000 holiday home owners, many people now let their holiday homes out of necessity.
The survey results show that 43% of people said they’d entered the lettings market out of necessity to cover essential costs, such as their mortgage, taxes and maintenance. A similar survey conducted by the same company in December 2007 found that only 30% of people let their property because they had to. This increase in the need to rent out a property is possibly reflected in the change of economic situation and the fact that more people have taken the chance to buy properties abroad.
Another top reason for letting a holiday home, cited by 41% of respondents, was being because they realised the added value of their second property as a means to generate income.
As far as the initial financing of their property goes, one third of the survey respondents said they had a mortgage loan to value (LTV) of 75% or more – and nearly 10% of people had a 90% LTV or more – and 27% had a local currency mortgage (Euro). Thirty-five per cent of people paid for their property purchase from cash or savings, 17% through remortgaging and 4% through inheritance.
The good news was that many people did say they were having success with letting out their properties. Over a third of people said they managed to fill their property for more than 25 weeks of the year with paying guests, whilst 50% said they achieved 18 weeks per year of lettings.
If you’re interested in letting out a property as a holiday home, take a look at our guide to letting a property abroad.
Do you already own an international property that you’re letting out? What are your reasons for doing so? What kind of success are you having?
