Buying-To-Let For A Holiday Rental?

February 29th 2012
By: Melanie

Buy-to-let has become a very attractive proposition over the past few years, but have you considered buying-to-let as a furnished holiday letting? The Olympic games are quickly approaching and many people living in London or environs have been planning to give up their homes for the summer and go on holiday, if played correctly this could be very lucrative.

However if you are thinking about going into holiday lettings for the long-term there are certain elements you will need to take into consideration.

Tax implications, if you rent out your second home as a holiday rental property there are tax benefits, however in order to benefit from this you will need rent your holiday rental out for a minimum amount of weeks:

From 2011-12 your holiday property will need to be let for 70 days (10 weeks), and available to let for 140 days (20 weeks)  - these are the amount of days the property needs to be available to rent.

However from 2012-13, this figure is increasing and your property will need to be rented out for 105 days (15 weeks) and be available to let for 210 days (30 weeks).

Which means if you are planning to rent your property out for short-term rents in summer and then a long-term rent in winter it will no longer be possible. So you might want to consider renting out your property annually.


You will need to check with your insurance company about insuring your property as a holiday rental.


Furnishing your rental on a budget can be a bit tricky, but you can check out second hand furniture sites, charity shops, house clearances, mass produced flat pack retailers such as Ikea offer reasonably priced furniture. You could also ask family and friends whether they have any furniture they might like to donate to a good cause.

Energy Savings:

You will probably be including the price of energy in your rental price, so make sure you invest in white goods that are triple A rating, you might be surprised at how much buying a cheap appliance might cost you over a few years. For example Which? the consumer magazine compared a Hotpoint RF175M fridge freezer with annual running cost of £18, to an Indesit BAN12NF fridge freezer with an annual running cost of £53 – with only a £50 difference in initial cost, buying a more expensive brand good pay in the long-term.


One of the best ways to advertise a property holiday letting is to check out some of the most popular holiday rental sites in the UK, these can give good returns for a small yearly investment. Do your own searches on the web and see which directories come up top in the natural listings.

Holiday Let Contract

Make sure you get a solicitor to draw up a holiday contract for you, or some holiday sites do have rental templates, make sure you get these signed, and ask for a refundable damage deposit before your guests stay.

Finally if you need any help choosing your furnished property rental or long-term rental, then why not pop into your local branch of Intercounty for a coffee, to discuss your options.