Holiday lets

[snackprovidersupreme]

DH is self employed and currently no pension. I have a normal workplace pension. We are considering various options and wonder whether a little holiday let (if we can stretch to it!) could be a good investment to consider. Does anyone have experience of this...?

A private let would be less work as you get older. I have two to supplement our pensions when the time comes.

It is worth remembering that Income from a holiday let is counted as relevant income by HMRC and can be used to contribute towards a pension and will therefore benefit from tax relief . Standard rental income is not classed as relevant income.
At the moment holiday lets are tax efficient but the government could pull the rug at any time.
Many folks are pulling out of rental property at present.

Thanks - sounds like a lot of thought needed!

Income returns are low. Agent's take a good cut and refurbishments are high. Returns are about 2%-3%. Investing in solar farms or REITS are a better form of return and you can pay for your own holiday away.

Thanks, this is very helpful! I hadn't thought about ongoing refurbishments.

We have a holiday house we let out. This year I think we got a total of 7 weeks bookings. By the time I pay the agent the caretaker cleaner gardener insurance and this years massive electricity bill it really doesn't make any money but does cover its own costs .
It is in a great spot overlooking the Atlantic near a nice town but my feeling is post pandemic people want to go abroad.
I'm not complaining it's a family house we've all got huge emotional attachment to but it's not a money making scheme by any means.
There is a lot of replacing things as well as the tatty old towels I'd be ok with aren't good enough for renters and there's a lot of wear and tear on bed linens especially.

If you need a regular income, might not prove to be the best investment. If you also want to use the property out of season it could work. Just bear in mind agents commission for the marketing and handling the booking, also cleaning costs/laundry are quite high, unless you are prepared to do this yourself(not sure if I would recommend this, our HL isn’t always left in a good state. Be prepared to replace lots of stained, broken glasses, plates, missing teaspoons etc DO NOT BUY WHITE TOWELS AND BATHMATS, like I did 😂 constantly replacing those. Refreshing paint work etc.