Are you starting to feel like it might be the right time to sell your holiday home? Whether you are selling to move on or you are ready to move away from holiday lettings, there are some things that you need to consider when putting it on the market, even more so if you are selling it as a holiday let and not a standard residential home.
Things Consider When Selling Your Holiday Home
Let’s have a look at some of them below:
Think About The Timing
Because you have provided self-catering accommodation as a service, you’ll already understand how important the peak season is for trade as a letting business. This makes it essential for you to take this into consideration for any potential buyer.
Deciding to put your property on the market at the height of the summer can make it problematic. How are you going to show the property off if it’s occupied for business? It could also mean that by the time the deal is completed, they’re into the winter, and they need to wait another 6 months before they start to see an investment return.
You need to ensure you are giving both you and any potential buyer plenty of time to deal with contracts and be prepared for the peak season that is ahead. If you deal with a holiday letting agency, discuss how you are able to work together to make the sale successful. Also, speak to local estate agents as they will be aware of the most popular times to sell your holiday home in the area.
You need to make sure you market your holiday home correctly, it could be the key to having the max interest gained. You should include an information pack as well as any property specifics. The property information pack should contain information about the ins and outs of the business side of the holiday let.
What Should Be Included?
You need to think about the type of information that would be useful for a buyer who is also looking to use this as a holiday let. They will be able to make an informed decision if you include:
The rental income you gain each year.
The main season, or busy weeks in the year.
How many visitors you get who return each year.
Where the majority of your bookings come from. Do you already have a great relationship with an agent?
Have you offered any discounts or promotions during quieter times, or maybe even the peak season?
What the potential hdb resale price would be.
Legislation And Taxes
When you are selling your holiday home, you need to make sure you are fully aware of any tax-relief schemes or taxes that could apply to you. These may include Entrepreneurs Relief, Capital Gains, or Roll Over Reliefs if you are moving your business and it’s classed as an FHL. You need to make sure you fully research anything that may apply to you.
This may be really obvious, however, presentation is vital when it comes to selling any property, let alone a holiday let. Potential buyers will be looking at the property with their own opinion as well as on behalf of their potential visitors.
If you arrange viewing after a busy summer season may not be best if you usually have to do maintenance or updates afterward. It won’t do it any justice. Before you make any arrangements for a viewing make sure you tick the small tasks off of your list, or even before you put it on the market.
Specialist Holiday Home Insurance
If your selling as a holiday home, then your potential buyers are going to want to know about your insurance history. If you have never had to make a claim, highlight it. It will help to provide some reassurance that your holiday home is a viable and reliable choice.
If you have had to make claims for any flooding then you have to declare these to any new owners. If you have used the same provider or know the best insurance providers it may be a good idea to share this information with the new owners or potential buyers. You may also want to enquire about changing or swapping any policies over.
This short guide should help you to make the considerations that you need to when you are selling your holiday home. It’s important to make your considerations around the potential buyer as much as possible. Are you selling a holiday home? What have you already thought about? Please share some of them in the comments below.