Holiday Home Rental VS. Long Term Rental

[HangLooseBruce]

When a desirable home is an an area which attracts a lot of holiday-goers, what experiences can you share about the problems and pitfalls of gearing up the home and using it for holiday rental, as opposed to long term rental?

In particular, can anyone recommend a holiday home management company for the Hawkes Bay area?

[ibuycashflow]

There are a few wbsites around that you can use to rent your bach out eg www.holidayhomes.co.nz

Also Mark Withers has a book out titled "Property Tax in New Zealand". He also has a holiday home he rents out www.stayattarawera.com

You can get some good depreciation rates because of all the furniture etc that has to be provided however the cash flows are not regular. I used to rent my bach out and just used the local agent. Only problem was cleaning after each short term tenancy.

Cheers
Jeff

[HangLooseBruce]

Long term rental VS Holiday Home

Jeff- my take on it is this: For a country which has an important holiday economy, I am amazed at the relative lack of holiday rental web presence and the unwillingness of agencies to engage in short term booking and management.

Cash flow ahould not be that much of a problem if the accommodation is well-located and well promoted internationall. With some promotional work, the returns can outpace long term rental, there are always time gaps for maintenance and improvements, one can use one's own home now and again, and holiday guests are less likely over a long period of time to deteriote the premises.

The biggest problem I see is finding a management company who is willing to make bookings, and arrange for lawn/garden care and outcleanings. I wonder if they know that I'd be willing to pay 20% of the gross rent for those services...

Bruce

There are a few wbsites around that you can use to rent your bach out eg www.holidayhomes.co.nz

Also Mark Withers has a book out titled "Property Tax in New Zealand". He also has a holiday home he rents out www.stayattarawera.com

You can get some good depreciation rates because of all the furniture etc that has to be provided however the cash flows are not regular. I used to rent my bach out and just used the local agent. Only problem was cleaning after each short term tenancy.

Cheers
Jeff

[Gatekeeper]

Hi Bruce, I think you'll find the web presence for holiday homes is actually quite high, especially if you take into account Intl sites. I'm listed on about 40 websites and also have my own home site. I use no other forms of advertising, and only use two paid sites.

I've been renting holiday accommodation for four years and do all my own cleaning and mntnce. You will usually get quite solid bookings over the spring/summer/autumn period, but winter can be very flat. With a beach house, this could be even more pronounced. My place is in Wellington so we get other types of demand in the off-season.

I also rent quite a few holiday houses, and can't see how they make much money. One I frequent on the Papamoa Beachfront, rents for only $100 per night! This is a full sized site with a value of $1m+.
And it hardly rents over the winter months.

Still, if I was in Hawkes Bay, I'd definitely take you on at 20%

[rentaBach]

HI Bruce

If its any help we manage and market holiday baches accommodation at this stage around the North Island, we are always on the look out for other unique places to offer to our large database of regulars

should you require further information
please feel free to call us on 0800 89 2224

or visit our website www.nzbaches.co.nz

Cheers
Robert

[donna]

Link exchanges are also really important in getting your property visible in the search engines and yet I only had one person take up my offer of listing their property in my directory for NZ Holiday Homes - and I don't even require a link back!

There is a forum focused totally on this, it's UK based but might be of interest... http://holiday-rental-owners.co.uk/forum/

Sarah

[fudosan]

Hi rentaBach, welcome to the forum.

Besides baches, I'm wondering if there is a market for apartments in downtown Auckland for overseas tourists to stay say 6 to 9 months.

[Glenn]

One of my clients was going to convert his long term rental into a holiday home. He already has two other holiday homes in Golden Bay.
He spent big on advertising and has his own web site.
Come November we only had one booking and decided to flag it.
the funny thing is two years after cancelling the Holidayhomes book and the associated web sites we still get enquiries for it.
My problem as a manager is the significantly higher hands on must respond management. I decided we would need to have an on hand cleaner ready to do the place over as soon as someone was ready to leave. In other words gear our selves up like a motel. I think anyone ready to do all this themselves would fit it all in.
I have now come to the conclusion like every other "regular" rental property manager that the work involved and the people problems are just not worth the effort.
So yes the fact that so many other people do it is a clear indication that there is money in the game. The problem seems to be one of high labour content that most people in the professional business of managing other peoples resdiential rentals do not need to be bothered with.

Been there done that.

Glenn

[ivanw]

Holiday rental websites

Hi there,

I just did a search on yahoo and saw that our test site is now up the top for houses to rent in NZ. Click the link below we are number 3!

http://search.yahoo.com/search?p=houses+for+sale+and+rent+new+zealand

If you would like you can post your holiday homes or baches for free on here and see if you have any luck.

I was also thinking of buying a holiday home to rent....but maybe a managed apartment would be easier?

Ivan

[donna]

Ivan

What are your links with NZ?

Your footer links are USA based and when I tried to submit my site for a link exchange there was no recommended text so I just used your meta description

but your system was very unimpressed:

ERROR



Our URL (http://rentalvegas.com) wasn't found on your reciprocal links page (http://www.pcpropertymanager.com/wsn2_2display.html)!

Please make sure you place this exact URL on your page before adding your link!

Your link remains on http://www.pcpropertymanager.com/wsn2_2display.html and will move to http://www.pcpropertymanager.com/wsn1_2display.html if it's recipricol.

You may also find other link partners at http://www.realestatewebmasters.com

Sarah