Regardless whether you’re a holiday letting expert or you are new to the market, you should be aware of the latest changes in the political arena that have resulted in a decline in the purchase of family homes abroad.
Staycation is considered as the new vacation as booking a lodge in Cumbria or renting a flat it Bristol replaces the annual trip to Spain. However, combining with increasing competition from owners renting in order to pay mortgages and maintenance cost, getting those booking has never been so important for the holiday home market.
Together with Flogas, retailers of commercial gas, we give you an insight into the holiday home market and what holiday home owners can do to maximise their profits.
Brexit
With Britons voting to leave the European Union and negotiations are now underway, attitude towards holidays and purchasing homes abroad are changing.
Homeowners and Brexit
Spain has always been a welcoming country that has accommodated Brits and is a first choice for when UK residents decide that they want to purchase a holiday home. In 2016, UK buyers made up 19% if home purchases in Spain by non-Spaniards at quite an impressive figure considering how many nationalities holidays are there too. It’s been reported that this figure has almost halved since 2008 when it was at 38%, but why?
With political and economic still being a question, Brits are becoming more reluctant to take the plunge and relocate abroad. Recently, the decline in the pound has meant that people cannot afford to buy the holiday home that they have dreamed of.
Holiday makers and Brexit
The decrease of the pound has also influenced the attitudes of holiday makers. There are more Brits opting to take a holiday within the country in order to save money. Although research showed that they are spending less money on their staycations than what they used to, and the income is coming in from elsewhere. It seems that tourists from other countries are coming over to take advantage of the lower rate of the pound and boosting the UK economy in that way.
Since the vote for Brexit, has not been fully covered yet, holiday makers are feeling unsure in other areas too. As of now, Brits are free to travel throughout the EU without restrictions and with access to healthcare. However, this is something that can change and it will further affect our holiday habits.
Ways to attract visitors to your holiday home
If you own a holiday home abroad, you may be seeing your visitor levels slowing. What can you do to encourage visitors to come and stay in your home?
Online visibility
If you haven’t got a website, you could be losing out a lot of potential customers from around the world that didn’t know about your site. Even a basic website that includes photos, customer reviews and contact information could boost your online presence and revenues.
Social media platforms are another source, which you can show off your holiday home and increase interest on. Using platforms such as Facebook or Twitter, you can offer competitions to get people ‘sharing’ your post and engaging with the company.
Review websites such as Trip Advisor and the review section of Airbnb could be the make or break when a customer is deciding whether to come and stay at your home. So be ensure to monitor the comments about your home and replying to any issues with an apology and a resolution. This will make you seem genuine and show that you have taken actions to resolve any issues.
Above and Beyond
One of the first thing that stays in customer’s mind when they’re reviewing is the atmosphere. To improve on this, consider greeting guests at the accommodation if you live nearby to provide them with their keys and show them around the area, offer complimentary wine or snacks and provide a map of the local area and any tips for their trip.
Maintenance Costs
You may be weighing up your options for purchasing a holiday letting property or perhaps you are looking to remain profitable. Whichever way, it is important to be aware of the costs involved with maintaining a holiday home. Of course, utility bills and mortgage payments are a first thought however, there are some that are often forgotten about: cleaning fees can be between £40 – £80 per booking, a welcome kit can cost £10 – £15, an agency may take around 20 – 25% of your monthly income and there are window cleaning and gardening costs on top of these too.
It appears if you are dreaming of owning a holiday home, you should invest in a home in the UK, where tourism is on the rise from both foreign tourists and UK residents. If you own a holiday home abroad, ensure you are maintaining your online presence and managing your costs as effectively as possible. Hopefully the effects of Brexit will become clearer in the near future and the holiday home industry will get an idea on where it stands.