Starting Up - location and market
Location, location, location!
This is probably the most important factor in determining whether a holiday home will be a success. As they say when it comes to buying a property, ‘location, location, location’!
This is just as true for holiday homes as it is for you own home. You may already be in possession of the property but the issue of location is still valid when deciding whether it is right for holiday letting.
Simply put, the better the location, the more likely it is to succeed. People will generally pay more if the property:
- is located in a holiday area
- is located a tourist city, town or village
- is near a beach (especially within safe walking distance for children)
- is conveniently located for tourist attractions
- is conveniently located for local amenities such as restaurants, pubs, swimming pools
- is in a child friendly setting
- has attractive views.
If you are looking for a property to use yourself, then it is important to find somewhere that is close enough for you to get to for short breaks. Ideally you want somewhere that is close enough that the travelling doesn’t put you off, but is just far enough away to feel that you are really getting away from it all!
The distance from your own home to your holiday cottage is also a factor in deciding how to manage the property. If you wish to have a more active part in some of the practical tasks such as changeover or maintenance, then choose a property nearer home. If you are happy to appoint someone to do these for you then you have the scope to have a property further away. The distance will also be a factor if you are planning on renovating the property first.
Bear in mind that distance is not a show stopper. Many people run their holiday homes from a distance. You just need to be realistic about the practicalities and make the necessary arrangements.
Target market
To maximise your revenue you should ideally cater for as wide a range of guests as possible. However, you are unlikely to be able to cater for all types of holiday guests, so when you think of letting your holiday cottage it is worth thinking about who you want to attract.
Are you intending to attract people who want luxury accommodation, or people looking for a lower budget holiday? Are you hoping to attract families, or did you see your cottage as a romantic retreat for couples?
Maybe the target market includes you! If you intend to use the cottage regularly for yourself, then you will probably want to suit your own tastes in location, facilities, decoration and furnishings. But don’t forget that you also need to allow for the tastes and requirements of your guests.
The answer to these questions about target market will affect many things such as your choice of property, the way you decorate and furnish your property, the facilities you will offer, and of course the rent you can charge.
