
The holiday season is here, and hopefully, your property is bustling with guests enjoying festive stays. While the focus may be on creating magical experiences, it’s equally important to keep an eye on the financial and operational aspects of running your rental. Managing your revenue is vital, but just as crucial is monitoring your expenses and ensuring your holiday let is fully compliant with regulations (writes Howard Reuben, Principal, HCH Financial Services).
Running a holiday let is exciting, but it comes with a long to-do list. Here are some key areas to keep in mind:
Compliance and safety essentials
Qualifying for FHL status:Â Ensure your property meets the criteria for Furnished Holiday Let tax benefits.
Licensing:Â Maintain a valid holiday let license (location-dependent).
New planning classes in England:Â Stay updated on any local planning requirements for holiday lets.
Health and safety obligations:Â Conduct fire risk assessments, install and test smoke alarms, and check electrical and gas safety regularly.
Childproofing and hazard warnings:Â Make your property family-friendly and provide clear signage for potential hazards, like low ceilings.
Swimming pools and hot tubs:Â Follow the rules for their safe use and maintenance.
This list isn’t exhaustive, so always seek professional advice to ensure full compliance and avoid costly surprises.
Insurance: your safety net
One of the biggest financial risks holiday let owners face is inadequate insurance. A tailored holiday let insurance policy should cover:
Buildings and contents
Accidental damage
Theft
Public and employers’ liability
Loss of rent
Having the right coverage is essential to protect both your property and your finances in the event of unforeseen issues.
Mortgage matters
If your property is being let on a short-term basis, a holiday let mortgage is a must. Standard residential or buy-to-let mortgages don’t cater to the unique risks associated with holiday lets, and using one without your lender’s explicit consent could breach your contract. A holiday let mortgage is structured to align with the nature of short-term rentals, ensuring compliance and peace of mind.
Plan for 2025 and beyond
As the year comes to a close, take some time to review your financial arrangements to ensure everything is in order. Having the correct insurance and mortgage products in place will safeguard your property and set you up for long-term success.
At HCH Financial Services, we’re here to help. We offer free reviews of your holiday let insurance and mortgage arrangements, helping you secure the right products and potentially save money.
Start 2025 with confidence and peace of mind – get in touch today:
Call: 0333 1234 536
Email: advice@hchfs.com
Enjoy the festive season and cheers to another successful year ahead!
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