Holiday rental vs fixed term tenancy

[Solidground]

Hi all

Has anyone ever furnished one of their rentals and turned it into a holiday home?
Obviously the lack of consistant rental income is the biggest deterrent but cant be such a bad idea in quiet times.

[k1w1]

I'm seriously considering doing this too. I see the downturn as a way of being able to holiday with family as well as earning enough to cover costs - so obviously not a totally financial decision as I will be worse off.

It will also allow me to tart the place up while we use it.

I've had mixed reports over which causes more damage though - holiday lets or permies.

I also hear that the letting of a holiday place can be mixed. Some years are good, then the next isn't, so it's a bit of a mixed bag.

[Gatekeeper]

I turned a long term let into a holiday home in 01. It was so successful I built another one next door. This worked because I am in a main city, winter or summer people still want/need to come here. I doubt it would work for a more remote area. My occupancy is well over 80% now, but that took some building up over the years. Average stay around 2-3 weeks.

People generally take good care and leave things tidy. Maintenance is ongoing, a lot of thorough cleaning and you fix up things as you go, depending on your vacancies so it's ultimately a part-time job.
I doubt I could put in a manager and get the same results.

I've seen a few try this and not make it. You really need to have some selling point, mine is the setting, peaceful, private, beautiful gardens, but only 15 mins from the capital city, and I cater to families. Plenty for kids to do in a safe environment. Most other types of accommodation aren't very suitable for kids.

I could fill another place no problem, but I'm not willing to pay the exhorbitant prices to get another rental currently. We are pretty much booked up till Feb 09.

[Solidground]

Within 2 hours of listing on Holidayhomes.co.nz I had 3 booking requests all over 6 days @ 155 per night, and $15 per extra person per night.

I would pay the neighbour $30 to check after guest exit and priovide an exit clean service.

Man its tempting!

[Solidground]

I turned a long term let into a holiday home in 01. It was so successful I built another one next door. This worked because I am in a main city, winter or summer people still want/need to come here. I doubt it would work for a more remote area. My occupancy is well over 80% now, but that took some building up over the years. Average stay around 2-3 weeks.

People generally take good care and leave things tidy. Maintenance is ongoing, a lot of thorough cleaning and you fix up things as you go, depending on your vacancies so it's ultimately a part-time job.
I doubt I could put in a manager and get the same results.

I've seen a few try this and not make it. You really need to have some selling point, mine is the setting, peaceful, private, beautiful gardens, but only 15 mins from the capital city, and I cater to families. Plenty for kids to do in a safe environment. Most other types of accommodation aren't very suitable for kids.

I could fill another place no problem, but I'm not willing to pay the exhorbitant prices to get another rental currently. We are pretty much booked up till Feb 09.

Very interesting Gatekeeper. I have had minimal rental enquiry but huge interest as a holiday home.

Mine meets the same criteria as yours, location from the city etc.

What is a little daunting is the inventory I'm creating of what I would need to by to furnish the place. A lot to outlay but i'm sure it would pay off.

What do yuo think is important in terms of furnishings? what are the must haves?

Its the liitle things I worry I may forget.

[k1w1]

Avoid mirrored ceilings in the bedroom

[princess]

Note - with larger, nicer homes its tempting for those renting for "holidays" to treat it as a party house. We have friends who rent their home out in this way and have had rather a lot of damage done as groups who rent the house had parties of up to 80 people during their "rental".

[Solidground]

Avoid mirrored ceilings in the bedroom

That wouldnt be a bonus?

[Solidground]

Note - with larger, nicer homes its tempting for those renting for "holidays" to treat it as a party house. We have friends who rent their home out in this way and have had rather a lot of damage done as groups who rent the house had parties of up to 80 people during their "rental".

True Princess

I would also ask for a bond I think to help with this sort of issue.

[k1w1]

It wouldn't be a bonus to the cleaner, that's for sure (and I don't mean the glass, unless we're talking ultra exhuberance).

[Solidground]

woah what do you get up to in peoples holiday homes kiwi? lol

[k1w1]

Let's just say I pack light:

Gimp suit: check
Oil: check

When is your's available to let?

[Gatekeeper]

Very interesting Gatekeeper. I have had minimal rental enquiry but huge interest as a holiday home.

Mine meets the same criteria as yours, location from the city etc.

What is a little daunting is the inventory I'm creating of what I would need to by to furnish the place. A lot to outlay but i'm sure it would pay off.

What do yuo think is important in terms of furnishings? what are the must haves?

Its the litle things I worry I may forget.

I use second hand to furnish. Mine are both one bedroom with various sofabeds in the lounge. Linen is my biggest outlay in that respect. Pays to buy quality. Both are fully equipped right down to the tea towels. This encourages people from overseas who arrive with just a suitcase, I'd say around 75% are from overseas. We try to keep the theme as a holiday house. Quirky selection of videos, DVD's, books and games. I don't go for flash, just homely, tasteful, and everything you need to be comfortable.
Sky digital, local phone etc.

[Solidground]

Let's just say I pack light:

Gimp suit: check
Oil: check

When is your's available to let?

errrrr i think wer'e fully booked right through to december 2050? Will you still be alive then?

[Solidground]

I use second hand to furnish. Mine are both one bedroom with various sofabeds in the lounge. Linen is my biggest outlay in that respect. Pays to buy quality. Both are fully equipped right down to the tea towels. This encourages people from overseas who arrive with just a suitcase, I'd say around 75% are from overseas. We try to keep the theme as a holiday house. Quirky selection of videos, DVD's, books and games. I don't go for flash, just homely, tasteful, and everything you need to be comfortable.
Sky digital, local phone etc.

Yes quality bedding is important. What do you do about laundering linen etc? do you live in the same city as the house? I don't so that's an issue.

I have made an excel spreadsheet and divided it into the different rooms now trying to list every little einsy thing they will need.