Posted by admin on July 6, 2009 under Second Home Owners | 
There is concern in some quarters that second homes have a negative impact on the economy of rural communities. In some parts of the UK, local strength of feeling about this has occasionally erupted into arson, for example, with a number of second homes being burned down in Wales.
The main issues that create controversy are twofold. Firstly, there is the argument that second home owners drive up prices in rural areas, pushing them out of the reach of local people and exacerbating the problem that there is not enough affordable housing for low income local families. This is clearly an area that needs a balanced approach and well thought out strategy to help solve this very real issue.
The second common concern is that second houses are unoccupied for a large part of the year and this deprives local businesses of potential custom, sometimes badly affecting their viability. Another aspect of this is that local schools can become short of children, sometimes forcing local schools to close. Indeed, on some areas very popular with second home owners, the area can feel like a ghost town out of season, without the community vitality and vibrant local economy that characterises some other rural areas.
The problems seem to be focused on highly localised rural and coastal areas, the kind of attractive areas that are popular for second homes. For example, in North Cornwall, one in three properties is thought to be a second home or holiday home,
In general, the more remote rural areas have the greatest concentrations of second homes as a proportion of all the housing stock, intensifying the problem of creating a sustainable and robust local community with a thriving local economy..
Although second and holiday homes contribute to an uplift in property prices in rural areas, it is important not to view their economic impact in isolation from other factors contributing to changes within rural communities and especially pressures on local housing markets from other groups such as commuters, retirees, or people wanting a lifestyle change.
One way that second home owners can help avoid any negative economic impacts on the local community is to maximise the extent to which the second home does not stand empty.
By renting a second home out as a holiday home for part of the year, when it is not in use by the owner’s family, it ensures that money is brought into the local economy as the family renting the holiday home will inevitably spend money in the local shops, restaurants and at local attractions. This is clearly a positive impact on the local economy and far better for the local community than having a second home stand empty.
Yet many owners of second homes resist renting out their home to holidaymakers.
There are a wide variety of reasons for this. It is often not as simple as whether or not the owner of a second home would like to make a profitable return on their property.
Some second home owners simply do not want strangers in their home and this is a strongly felt emotion they are not likely to overcome.
Others do not want to get involved in what they see as complex property management issues, involving a lot of work and practical difficulty. For these owners, the answer is often to hire a holiday homes services specialist that can take away the hassle and arrange everything on their behalf, making the whole process of renting out a holiday home very straightforward.
If a holiday homes services specialist is engaged, they can arrange all aspects of property management, cleaning services and key holder services as well as sometimes a holiday concierge service. This means that the second home owner can benefit from a stream of income from the property, all the gain without the pain.
In addition, the impact on the local economy is positive as the holiday home rentals bring money into the local shops, restaurants and attractions as well as necessitating the employment of local trades people, such as plumbers, electricians, painters and carpenters.
.
The impacts, both positive and negative, of second homes and holiday homes touch on a diverse range of factors that affect the sustainability of rural communities.
One thing is clear – renting out a second home as a holiday home has a more positive impact on the local economy than leaving it standing empty for long periods.
Posted by admin on under Holiday Home Owners |
Effective marketing is a key element of profitable holiday home property management. Unless the holiday home is achieving good levels of occupancy, the returns on the holiday home will not be maximised.
If you use a letting agent, the agent will handle all marketing and PR on your behalf and you do not need to worry about it. The better holiday home services companies will also sometimes be able to help you with your website and online marketing.
However, many holiday home owners do not use agency services and prefer to manage their own properties. Marketing is a specialist area and therefore owners are often not as skilled at marketing as they are at other aspects of property management.
So if you are an owner who markets your own holiday homes, here are six marketing tips to help you win customers and achieve the highest possible yield from your property investment.
TIP 1
Firstly, work out who your target audience is for the holiday home. Taking into account the price band, location, style and layout of the property, what kind of people are most likely to want to stay there?
For example, some holiday homes are ideal for families with young children, some are ideal for older people who want to be close to nature, some are perfect for young people who want to be close to nightlife and attractions. Clear definition of your target audience is a vital first step to effective marketing. Once you have defined your target audience, add any accessories and extras to the holiday home that are the kind of thing your target audience will appreciate. For example, a holiday home aimed at young families will be made more attractive by a selection of age-appropriate DVDs , a selection of toys and the provision of items such as cots or buggies that your customer would prefer not to bring with them.
TIP 2
Once you have decided on the target audience for your holiday home, think through all the ways you can attract this particular target audience. Which are the magazines and newspapers your target audience read? If you are not sure, ask the advertising departments at various publications to send you information on their readership. This will help you work out where you should be advertising or trying to get some free coverage through PR
TIP 3
Make the most of the internet. The worldwide web is used by the majority of prospective customers as their first port of call for research when they are planning a holiday. So it is essential that your holiday property is presented as well as it can be on the internet. Whether you have your own website or you advertise on a website belonging to someone else, do not be tempted to cut corners on photography for the website. It is worth using a professional photographer to make sure your holiday home looks its very best.
Always use online booking if possible, so that it is as easy as possible for a customer to go ahead and book as soon as he or she has been interested by your holiday home.
TIP 4
Don’t miss out on the huge potential profitability of attracting repeat customers.
Many people like to return to the same holiday home for many years, if they have a good experience first time round. So make it easy for potential repeat customers to decide to come back.
Set up an email newsletter so that you can keep in touch with them and tempt them with a stream of special offers as well as news about the local area and perhaps even a webcam.
You may also like to consider offering a reduced rate if customers book to return next year, whilst they are still on their first stay. People are often sad to leave so it is a good time to tempt customers with the prospect of a return visit.
Many accommodation providers in the tourism industry see up to 70% or 80% of customers returning. Making the most of the potential for winning repeat business is an essential tool for effective marketing.
TIP 5
Try to increase your bookings by thinking laterally about how customers could enjoy the holiday home out of the peak season. Most holiday home property management companies say that although the peak season achieves full occupancy without too much difficulty, the biggest marketing challenge is achieving high occupancy early and late in the season. This is where effective marketing can really come into its own. One tried and tested tip is to create a theme for a break. For example, maybe your holiday home is close to gardens that look great in the early Spring. If so, this can be made into an effective marketing proposition, pointing out how close your holiday home is to leading gardens and maybe even creating a partnership with local gardens, so you offer entry tickets as part of the rental price for the week. If you start thinking laterally about what is going on in the vicinity of the holiday home at different times of the year, you will find it easy to come up with effective marketing strategies for achieving more sales out of the peak season.
Posted by admin on under Holiday Home Owners, Holiday Property Management & Maintenance |
A vital element of holiday home property management is effective property maintenance, to make sure you avoid unnecessary costs and maximise return on your investment.
If you run a holiday home letting business, you face a number of property maintenance challenges, some of which are quite different from those you face regarding maintenance of your own home.
Something as simple as a displaced roof tile can lead to water damage and a huge bill as well as possibly lost revenue if you need to carry out remedial work during the holiday letting season. So it is important to follow strategies for effective property maintenance of a holiday home or second home.
The biggest challenge you will face is keeping on top of property maintenance if you live a long way from the property, as many holiday home owners do. It is vital to appoint someone you trust to keep a regular eye on the house, from the point of view of property maintenance. You cannot expect the same people who are delivering cleaning services or key holder services to check for property maintenance issues, unless this has been specifically agreed, and you cannot expect a neighbour, however helpful, to alert you to everything that may need to be done either.
So an essential strategy is to appoint someone that is an expert in property maintenance to keep an eye on the property for you. This could be a specialist holiday home property management company or it could be a trusted individual with the right skills. Either way, make sure they know exactly what is expected of them and agree a mutually acceptable fee for the caretaking service. Some owners of second homes and holiday homes resist paying a caretaking fee, preferring a more informal arrangement with a friend or neighbour but this is not a wise move. It is only if the arrangement is on a formal business footing that you can reasonably expect the job to be done well.
Once you have appointed someone to be in charge of property maintenance, draw up a list of all the items that need to be checked and agree how often and when. This should include checking the roof tiles, the guttering, any signs of damp or water ingress, damage to the paintwork, functioning of locks and so on.
It may help to walk round the house as you draw up the list to remind you of all the areas that need to be checked. By spotting any problems as they arise, you can avoid problems getting worse or causing secondary damage. You can also carry out remedial work early and keep costs to a minimum.
Don’t forget to include a check of all outside areas and fencing as well.
As well as checking for any property maintenance problems as they arise, there will be a number of regular maintenance jobs to be carried out on a weekly, monthly or annual basis. This could include decorating, exterior painting, septic tank drainage and servicing of electrical equipment.
By planning these regular property maintenance jobs well in advance, you will be able to select times that avoid periods of peak customer demand, so you never have to turn down a holiday booking due to a property maintenance emergency.
You will also be able to secure tradesmen well in advance, avoiding having to waste time phoning around trying to find a decorator or a plumber at short notice.
If you decide to contract a holiday home services specialist, you will benefit from their broad experience in holiday home property management and you can relax, knowing that your property is being well maintained.
However, if you decide to make your own arrangements, you should adopt the same disciplined strategies that a holiday home services specialist would to make sure that your property maintenance runs smoothly and that your holiday home rentals business delivers maximum yield.
Posted by admin on under Holiday Home Owners, Holiday Property Management & Maintenance |
With interest rates falling and the value of your savings being eroded, many people are looking for alternative ways of getting a good return on their investments.
This is leading some to consider holiday home property management for the first time. In some cases, this may be people who have a second home that until now they have kept for use by their own family but who are now considering renting it out as a vacation home to make additional income.
In other cases, it may include people who have snapped up property at bargain prices in the weak real estate market, and who are now looking to establish high yield holiday rental properties.
However, although there are many advantages of renting out holiday homes, including the prospect of good yields, there are also pitfalls that can trip up the unwary.
If you want to run a holiday letting business, you will face new issues and challenges, some of which are quite different from those associated with owning a second home for private use or long term lets.
Many people let out second homes, but it is vital to realise that the rules change significantly when you are letting out your second home to members of the public as a holiday home. There are legal Health and Safety obligations that you must understand and comply with, as otherwise, you run the risk of prosecution.
In the UK, you must check that the electrics, the gas and all furnishings in a holiday home are fully compliant with the latest legislation and that installations are checked regularly. Take expert legal advice if you are renting out a holiday home abroad as each country has its own laws. The whole area of public liability is fraught with pitfalls, so do not fall into the trap of being unaware of your responsibilities, as ignorance is no defence in a court of law.
You must have specific holiday homes insurance, including public liability insurance. Make sure that you read all the small print in the insurance policy as you will need to make sure that your policy covers the specific needs of your holiday home and failing to do this is a pitfall that trips up many.
Another potential pitfall is failing to supply the details and items your guest may need if their holiday does not go according to plan. Think through the kind of things your guests may need in an emergency and supply these at the holiday home. Such items could include contact details for hospitals, police and so on, as well as items such as a first aid box, fuses and torches. Failure to do this could mean that an emergency could become even more serious than necessary.
You will also need to decide if you are going to use the services of a holiday home property management company or whether you wish to manage the property yourself. The latter can be problematic, especially if you live some distance away.
If you decide to secure the services of a holiday home services specialist, you will benefit from their years of expertise in avoiding pitfalls and making sure that the holiday home rental runs smoothly.
Remember there is a long list of aspects you need to consider and arrange. You will need to arrange professional cleaning services, keyholder services, customer liaison, maintenance and repairs, gardening, inventory checking and so on.
Each of these items include their own specific risks and pitfalls, not least the risk of being let down by friends and neighbours, if you ask them to help with these tasks. So there is a big advantage in handing all of these responsibilities over to a holiday home services specialist.
With effective planning and specialist guidance, you can avoid the pitfalls and establish a profitable holiday letting business.
Posted by admin on under Holiday Home Owners, Holiday Property Management & Maintenance |
Just like any other sector of business, holiday home property management needs to keep abreast of changing market conditions and continue to innovate.
It is only through staying one step ahead of the competition that any business can succeed and holiday home rentals are a competitive market like any other.
However, many vacation homes are not managed in a professional way and this has a negative effect on the returns that their owners can expect to make on their property investment.
Here are essential strategies that will help you make maximum returns.
Firstly, ensure that the property is in a good location. Potential customers will usually choose their preferred destination area first, before then selecting accommodation in the area, so you will make greatest returns if you are letting holiday homes in an area that is popular with tourists.
Secondly, target your potential customers. Think hard about what kind of person is likely to want to take a holiday rental in your holiday home and then target them through advertising in the right media to reach them effectively.
For example, some holiday homes are best targeted at couples looking for a romantic hideaway, some are best targeted at families with young children, some are best suited for country walkers and so on. Once you have decided on your target market, be consistent in the the language you use to describe the property in your promotional materials, and also the selection of any extras you may supply, such as toys, games, DVDs, food or toiletries.
Thirdly, make full use of the Internet. Nowadays, the worldwide web is the first place most people look to research holidays. Most holiday home property management companies will recommend that you have a good website for your property, showing it in its best light and providing all the information a prospective customer will want. It is also well worth including an online booking facility on your website.
You should also consider making the most of any other website features that will help your holiday rental stand out from the crowd. For example, webcams are reasonably inexpensive and a webcam showing live views from the property can make a very appealing feature on your website. The use of video on your website can also increase your sales conversions.
Fourthly, plan the furnishings and interior design with care. Today’s holiday home rental customers are generally discerning and they expect high standards. Fresh, neutral colours are usually well liked. Leather furniture can make a very good choice for rented holiday accommodation as it is durable and easy to keep clean and many designs look contemporary and attractive.
Of course, cleaning and keyholder services must be of the very highest standards, with everything going absolutely according to plan at all times as today’s customer will not tolerate any shortfalls in service standards. So plan effectively and have contingency plans ready too.
Next, aim to exceed your customer’s expectations during their stay. This will lead to a greater likelihood of repeat bookings and also positive word of mouth, which again will lead to more customers. To make sure your customers are delighted, you will need to ensure that every single aspect of the organisation goes smoothly and also that all of their needs are anticipated.
To help achieve this, it is a sound strategy to engage a holiday concierge company as they can arrange any extras the customer may want. For example, they could arrange for a cordon bleu chef to come to the holiday home or arrange outings or spa bookings.
This kind of added value can really make a difference to customer satisfaction.
Another thing to remember is that vacation home rental customers are not necessarily into self catering these days! Property management companies report an increase in the number of holiday homes that offer daily housekeeping, as some customers opt for a higher level of service.
So make sure your strategies provide for the needs of these increasingly discerning and demanding guests.
If you follow these strategies, you will significantly increase your chances of successful and profitable holiday home property management.
Posted by admin on under Holiday Home Owners |
As the credit crunch bites, holiday home owners and other tourism providers in the UK are trying to predict what the future has in store for the sector.
Research studies show that in the face of financial pressure and economic uncertainty, UK consumers are unwilling to sacrifice their main annual holiday, although they are likely to take less additional short breaks across the year.
Research quoted by South West Tourism indicates that there are two key trends emerging as the tourism market polarises.
Half of UK holidaymakers say that they will be looking to reduce their overall spend and will either trade down in the standard of the hotel or holiday home accommodation they select or reduce the number of days their holiday lasts – opting for example for a break of 7 or 10 days instead of the usual 14. This is a trend that is also being reported by package tour operators serving the UK market.
However, the other half of UK holidaymakers say that they do not intend to trade down or compromise on quality although they will be looking for additional value for money in making their choice of hotel or holiday home.
Property management companies report that in assessing what constitutes value for money, customers not necessarily looking for cash savings. Instead they are looking for additional ‘bang for their buck’ – additional features or services that they think wil add to their overall enjoyment of the experience. This kind of additional service will become more and more of a competitive discriminator, making certain holiday homes stand out from the pack.
Holiday homes service specialist companies and travel concierge services are emerging in order to meet the demands for added value services of this kind.
This could include, for example, the supply of a chef at the holiday home either for the entire stay or for only one evening according to the wishes of the guest. This is a specialist service which is fast growing in popularity.
It could also include arranging activities for guests and generally acting as a holiday concierge, able to respond promptly and efficiently to any customer needs, including providing itineraries, making travel arrangements or restaurant bookings, arranging leisure activities, pampering, sourcing local products, grocery shopping and so on. In fact, today’s holiday homes services specialist is totally customer-centric and will set out to satisfy just about any customer whim or demand.
Holiday homes that provide this level of service as an ad hoc additional benefit to their guests are clearly at a competitive advantage to those that do not.
As customers become increasingly demanding in a competitive market, the breadth of additional features and services available to those who rent holiday homes will continue to grow, limited only by the imagination and resourcefulness of the holiday homes services specialist.
Posted by admin on under Holiday Home General Items, Holiday Home Owners |
In today’s competitive tourism market, the challenges of the global economic crisis will create winners and losers in 2009.
It is very likely that the winners will include owners of quality holiday homes in the UK.
With sterling now at a historic low in relation to the Euro and plunging against the dollar and other currencies, the UK is set to prove an attractive option to holidaymakers from overseas in 2009. Indeed, Visit Britain is pinning its hopes on a surge of additional overseas visitors, attracted by how much further their money will go in the UK this year.
But an even more significant market is the British holidaymaker, who is likely to think twice about holidaying in Europe or America this year, now that the weak pound looks like knocking a third off the value of their spending money. So there is every possibility that a greater number will decide to take their holiday in the UK this year.
As the leading tourism destination in the UK, the counties of Devon and Cornwall are set to win the lion’s share of this business.
Certainly, early indications from property management companies are that this prediction is on course to becoming a reality.
According to property management companies, bookings of UK holiday homes in Devon and Cornwall are higher than at the same time last year and holiday home enquiries are also running at a high level.
However, the supply of holiday homes is also increasing as many second home owners, who previously reserved their second homes for use by their own family, try to make additional income by renting their second home out to paying guests for some of the year. This trend will intensify competition in the self catering sector further.
The credit crunch is also likely to have a positive impact on the holiday home market, in comparison to other accommodation sectors. With most, if not all, holidaymakers feeling the pinch, they are likely to look for ways of achieving a high quality holiday experience but also saving money where they can.
Unlike hotel accommodation, holiday homes mean that customers can tailor their expenditure on food and drink to their budget. It is also possible to increase the party size by inviting additional family or friends to larger holiday homes, which usually works out less expensive than the equivalent number staying at a hotel.
With the range of facilities on offer in today’s holiday home, it is also easier to have a high quality experience spending time at the house itself, allowing the option to spend less money on visiting attractions and other secondary spend.
Indeed, the rise of holiday concierge services and other holiday home property management services is leading to an increased range of ‘a la carte’ features being made available to customers according to their specific needs. This allows the holiday home guest to tailor the experience to his wishes and budget, with greater flexibility than can easily be provided by other accommodation sectors.
In an age where the customer is king and flexibility is increasingly valued, this creates a competitive edge for the holiday home sector.
This makes it likely that holiday homes will be in pole position to benefit from the weakness of sterling and the increased demand for holidays in the UK in 2009.
