5 Things To Consider Before Buying A Holiday Home

Making a business out of letting a holiday home is a trend that has skyrocketed over the past decade, thanks to online hospitality services and platforms like Airbnb. For the most successful homestays, it can be a very lucrative business, but with the marketplace so saturated and the competition so rife, it takes a lot of hard work to reap a serious financial reward.

If you’re planning on venturing into holiday lettings - or you want some advice on how to achieve consistent 5-star ratings - here are 5 key things you should consider:

1. Location

If you want your property to be a successful holiday rental, it needs to be situated in a desired holiday location or near a tourist hotspot. It should be surrounded by local attractions including shops, pubs, restaurants, cafes, national parks, walking trails, beaches, etc.

However, it ultimately comes down to how you market the property. For example, if the property is located in a particularly rural area, the selling point should be that it is a peaceful getaway or “retreat”. We recommend that the property is not entirely remote and that it should still be a close driving distance to shops and major transport links.

2. Special Features

In order to catch the eye of prospective guests, your home needs to be something of a spectacle. People will only pay top dollar to spend time in your home if it is much better than their own. What’s more, the more special your holiday let is, the more you can charge per night and the more recognition the property will receive.

Special features that will really take your home from zero to hero include a spacious garden, a pool, a hot tub, a large deck/living area for hosting, an open fireplace, activities for children, etc. The more “wow” factor you inject into your home, the more successful it will be.

3. Guest Capacity

Perhaps the key criteria prospective guests will use when searching for holiday rental is the number of guests it can accommodate. This is not a time to cut corners - if your advertisement says that your home can sleep 6 guests, but you only have 1 bedroom and a couple of sofa beds, your guests will not be impressed and you will receive a poor review.

The most luxurious and successful homestays offer top-quality beds in double rooms with ensuites. If you have 2 bedrooms that can sleep 4 guests but you also have a pull-out couch for 2 extra guests, you should specify this in the description so you do not mislead anyone.

A good night’s sleep is also of monumental importance. Guests should not have to compromise on a good rest just because they are choosing a homestay instead of a hotel. The standards should be the same.

4. Value for Money

The main thing that will determine the success of your holiday rental and whether you receive lots of bookings is the overall value for money. Luxury home rentals can cost anywhere between $500 and $1500 per night, but this depends greatly on location.

For example, a holiday let in Melbourne’s CBD will be much more expensive than a holiday let in Cairns, QLD, due to the location and the surrounding attractions. Similarly, but on a smaller scale, a Blue Mountains holiday rental, though beautiful, will cost considerably less than a holiday rental in an affluent suburb in Sydney (e.g. Double Bay or Manly).

That being said, if your homestay offers lots of special features (see #2) - namely enough bedrooms and bathrooms for all guests - you can increase the cost per night without receiving backlash from guests.

5. Competition

Before committing to purchasing a home rental, you should scope out the competition. After all, it’s a business.

The homestay marketplace will be more competitive in popular destinations and cities such as Sydney, NSW, Melbourne, VIC, and Brisbane, QLD, but this shouldn’t put you off. As long as you ensure your property has something unique to offer, is a good value for money and is advertised properly (and accurately) you will welcome a host of bookings and 5-star ratings.

Consider the above 5 points and you will reap the rewards of a holiday home rental in no time.