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Original poster

Would you buy a house with a holiday let?

32 replies

lemonchickenpleasedarlin · 17/05/2023 17:08

Looking between two houses, in a very popular seaside town in Devon. We are downsizing for retirement.

Property A) 2/3 Bedroom House & 1 Bedroom Holiday Rental
Property B) 4 Bedroom House

Property A) Is dated and would need a lot of work. Current fixtures etc are cheap. Think tiled carpet, cheap bathroom.
Property B) Is done up, high quality fittings.

Both properties are exactly the same price.

Didn't plan on buying somewhere with a holiday rental, but could be a useful additional source of income. Although in 10 years time when DH is nearing 90, I would be left alone to sort the flat.

OP posts:
Roselilly36 · 17/05/2023 17:12

Totally different propositions, if you may need income the property with the let could be the better option. You could hire a management company to handle the holiday let booking, cleans, laundry etc. so you don’t have to do this yourself. Ask to see booking history to see how successful it has been as a let. good luck with whatever choice you make.

Povertytrapped · 17/05/2023 17:14

If you need more income then A, but if you don’t (holiday lets are hard work for the money you make) then B every time.

Original poster
lemonchickenpleasedarlin · 17/05/2023 17:15

We don’t need the income. But more money is always nice, no?

OP posts:
ohtowinthelottery · 17/05/2023 17:23

My ILs bought a house like that - 3 bed house + 1 bed cottage in a holiday area. It was great for guests to go and stay without being too intrusive. Our children and BILs children were young when they bought it so the children slept on a sofa bed.
They never rented it out although the previous owners did.

Povertytrapped · 17/05/2023 18:13

more money isn’t necessarily nice, quality of life is more important - if you’re retiring and your husband is 80 ish, don’t you just want to enjoy yourselves?

Lastqueenofscotland2 · 17/05/2023 18:14

The holiday let will be a lot of work!!
Id go for B and have a quiet life

ACG84 · 17/05/2023 18:31

lemonchickenpleasedarlin · 17/05/2023 17:15

We don’t need the income. But more money is always nice, no?

Wisdom is knowing when enough is enough, but unfortunately, we humans never seem to know that limit

In your own words - you don’t' need the income

You are progressing into your twilight years - as we all know - ‘you can't take it with you’ ; so why not choose to focus in the years to come on the things that actually matter?

At the latter stages of life - things like organising rental properties (even if it's via a managing agent) will be more stress than reward

You won't get this time again.
Or the next few years you may have left.
My suggestion is not to spend it chasing even more money (which you admit don’t need)
Perhaps spend it doing something that may actually endure

EmpressMoo · 17/05/2023 18:58

How separate is the holiday let? Could there be issues with noise? Does it share the garden/access/parking? If so, can that be changed? Does it have its own metered utilities and separate heating system? If not, can that be changed without the need for a whole new connection (very expensive)? You can get internal electricity meters if the wiring layout allows.

I know of 2 people who have similar properties (possibly in the same town). One does holiday lets, the other lets out the flat as a residential property to another retiree. The extra money has made for a comfortable retirement without any real disruption, and it is quite a nice way to be social in later years. I can't think of nice way to say that in your eighties your social circle starts to diminish 🙁

Holiday lets can charge more but the season is limited, although that means you aren't sharing your home all year round, although holiday makers tend to be less considerate, there is competition so you may not get bookings, you need to clean the property etc You can probably make a similar amount of money per annum from letting it to a tenant but then they are there all year round. If the property shares heating and utilities with the house, you can be stuck with big bills run up by someone else. You will usually also have to pay council tax on the property if it has its own kitchen, bathroom and entrance if it is empty.

I wouldn't rule it out. That said, maybe not this property as you would need to factor in the cost of renovations, which could wipe out any profits for a long time.

ModerationInEverything · 17/05/2023 19:03

Property B. Ad you have said, you don't need the money. I would suggest you also don't need the aggro.
Property B needs no work. Buy it and enjoy.

AllIwantforChristmas22 · 17/05/2023 19:04

Absolutely not at your age. It’s more hassle than worth.

AllIwantforChristmas22 · 17/05/2023 19:06

B all the way.

(Have friends in a similar situation: retired in a popular seaside town - holiday let next to their house- and it becomes harder and harder to manage as they battle their own health issues).

Traceyislivid · 17/05/2023 19:15

Do you want strangers hanging about your house in the summer? Sitting in your garden and trying to talk to you etc? I had this when I did Airbnb in my house which I didn’t mind at the time but now? No thanks.

Traceyislivid · 17/05/2023 19:16

Oh and you’d be tied to the house for arrival and check in and departure and change overs. Unless you had a key box.

Violinist64 · 17/05/2023 19:18

Definitely B. Enjoy your retirement.

Frenchfancy · 17/05/2023 19:20

I would go for B

We have a house with a holiday let which we let out for 19 years. We have now closed down the business (we had other properties too) and just use the holiday let for family and parties. It is a great relief to have our garden back and to not be constantly thinking about guests.

Go for the house that is finished and enjoy your life.

SeasonsBleatings · 17/05/2023 19:23

B given your situation

CordylineHair · 17/05/2023 19:30

A

You could have a Carer live there

You can rent it out for three months of the year only and use it for family the rest of the time. Our guest room is a self contained flat used for family and commercially. I would do the same again if I built another house

PinkRobotDuck · 17/05/2023 19:31

No dont' let - pia, stress and hassle.

Caterina99 · 17/05/2023 20:15

Holiday lets can be a lot of work. So you either have to do the work yourself, and therefore make money. Or pay someone else to do it, and so you make less money, but your life is easier. Or just use it for family and friends etc which is less stress but makes no money.

We live in a rural area and have some holiday lets. My parents have part of their house they could rent out if they so wished. But they don’t want people in their garden and annoying them, and the associated stress of something not working on Christmas Day or 11pm at night which is when you inevitably get the call! They just use that annex for friends and family visiting

KievLoverTwo · 17/05/2023 20:30

No to the holiday let. Friends ran a thriving air b a d b all through COVID. They charge £75 a night. This year Wowcher have undercut them by sending people to Spain for 3 nights for the same sum.

They are in a massively popular N Yorks town. They had three bookings for April.

They still have to maintain that building, insure it, heat it when it is winter, keep it aired.

It's work and money for no income.

Holiday rentals are so wildly variable.

ScribblingPixie · 17/05/2023 20:32

Having just sold a holiday let, I'd say don't do it, OP. The stress is constant! Enjoy your retirement.

mrsbyers · 17/05/2023 20:34

You could always incorporate the holiday let back into part of your home as it sounds like you will have lots of work to do anyway ?

KievLoverTwo · 17/05/2023 20:40

Forgot to mention that it cost my friend so much to heat in winter 2022 that she couldn't turn a profit and had to close it down.

FinallyHere · 17/05/2023 20:43

If both do actually sell for the same amount, then the question will be whether you have the capacity and resources to 'do up' property A?

Post refurbishment it would be worth more.

If you don't have ample funds for refurbishment plus contingency, plus the contacts for a successful refurbishment in s new area, then property B really is your only option.

If you have the funds and contacts, do you have the appetite for refurbishment ?

Cantkidakidda · 17/05/2023 20:44

I wouldn't pick either, a holiday let is likely to be stressful but if you are downsizing is 4 bedrooms really needed its a lot to clean if you would be doing it all yourself, I'd assume downsizing would be to 2 bedrooms 3 at a push but don't know if you have extra family/carers regularly that would need the space.