Renting out a holiday home can provide owners with a decent income, but investing in six must-have extras can add £20,000 a year in pre-tax value, experts reveal.
Research by holiday letting company Sykes Holiday Cottages says the average holiday let earns £24,500 a year, before tax.
The most searched features on their website are a hot tub, followed by wifi, the nearest pub and garden facilities.
It says Wi-Fi access increases potential income by up to 55 percent. The next best value upgrade is a hot tub, which adds up to 37 percent to the rental value. This is followed by having a property that allows children or pets, which together make up 15 percent.
The experts at Holiday Let share how these and other ideas, like a firepit, movie theater, and state-of-the-art coffee machine, are investments that make guests willing to pay more for their stay.
The calculated costs are for the initial investment and annual maintenance, calculating the added value for one year.
Hot tub… Total cost: £7,000. Value per year: £9,000
A hot tub can increase the value of your holiday home by £9,000, especially if it can be used all year round.
Prices for a seven-foot bath that seats four people start at around £5,000, but you can spend £20,000 or more on luxury models. Companies to consider include Arctic Spas, Bullfrog Spas, Hot Spring, Jacuzzi, and Sundance Spas.
Magazines like WhatSpa? It can provide you with guidance on options, but you should also consider installation costs. These include budgeting for a four-inch thick concrete base and an electrician to connect the hot tub to an outside power source, adding an extra £1,000 plus £100 cover for when not in use.
There are also regular running costs and maintenance fees that will affect your budget. Expect to refill a hot tub four times a year and use cleaning chemicals, totaling £300. It could also add £600 a year to your electricity bill. As a holiday let, also quote a service fee of £100 per year.
Wifi… Total cost: £540. Value per year: Up to £13,500
Guests typically want to relax and watch movies on vacation, especially families with younger children, so it’s always worth providing Wi-Fi.
The cost of providing Wi-Fi can be paid for in ten days. You’re selling an idyllic dream away from the hustle and bustle of modern life, but that doesn’t mean your guests won’t want the option to kick back and watch the latest movies or share their vacation fun on social media. It’s also investing in offering choice, so it may still choose to market a “digital detox” service to those guests who prefer to escape the grid.
You can pay £30 a month for a basic BT broadband package. But most luxury rental guests will expect streaming services like Netflix. A BT TV and broadband package that includes Netflix and Sky Entertainment TV packages can cost £45.
Alex Tunney, of holiday rental company Bloom Stays, which has 120 properties in Kent and Sussex, says: “It is important to advertise internet services so guests know exactly what they will receive. Although wifi can be an advantage, You can also take advantage of not offering it, promoting an off-grid digital detox in the countryside.’
Dogs allowed… Total cost: £180. Value per year: £1,800
Instead of simply advertising a holiday home as “dog friendly”, it’s worth making sure the dog is treated like a special member of the family.
The cost of keeping your dog in a kennel or dog hotel can amount to £50 per day, so many guests prefer to bring their dog with them on holiday. But rather than simply advertising a holiday home as “dog friendly”, it’s worth making sure the dog is treated like a special member of the family.
Tunney says: ‘It’s important to make your pet feel pampered, so consider providing a designer dog bed. A jar of dog treats can also provide a pleasant surprise and if you provide details of fantastic dog walks in the area it will also be time well spent as it can add real value for guests.’
A luxury orthopedic dog bed from Baker & Bray costs £140, while a £15 blanket can ensure it stays in good condition for longer. Optional extras, such as a £10 chew toy and a £15 jar of dog biscuits, are great ideas. Guests will usually bring their own dog bowls and leashes, but it might be worth providing spares in case of emergency. It may also be wise to budget more for your cleaning bill.
Fireplace and barbecue… Total cost: £1,200. Value per year: £2,400
‘Consider adding a fire pit or barbecue with self-catering accommodation. A fire pit helps guests stay warm on a cold night,” says Sykes Holiday Cottages
The outdoor space of a vacation rental should be viewed as an extra room where guests can relax or unwind after a day of sightseeing, adding perhaps 10 percent to the value of the rental.
Sykes Holiday Cottages says: ‘Providing a seating area is vital and there must be enough space for each of the booked guests. Also consider adding a fire pit or barbecue with self-catering accommodations. A fire pit helps guests stay warm on a cold night. Garden sofas can be a big hit, offering the opportunity to lounge outdoors, read a book or listen to music. Table areas are another necessity to offer the opportunity for outdoor dining.’
According to the Checkatrade website, a cast iron fire pit can cost between £100 and £2,000. Please include charcoal/wood and lighters which will cost you £30 per stay. You can buy a three-seater outdoor sofa at Ikea for £400 and a table and six chairs set for £370. A Weber charcoal barbecue costs £200.
Cinema room… Total cost: £700. Value per year: £1,800
According to What-Hello? a £500 Epsom home cinema projector could be the solution
Entertainment that provides a reason for the family to stay at home is a big draw, says Sykes Holiday Cottages, and a movie night using a home theater system is at the top of this list. Although you can spend thousands of pounds on equipment, it is better to work to a tight budget as it is easier for electronics to break when handled by a guest than by owners who understand what it costs. According to What-Hello? A £500 Epsom home cinema projector could be the solution. You’ll also need to budget £100 for a cinema screen. Such equipment can easily be connected to DVD players or streaming services.
Read the instructions before letting guests drop the equipment and make sure they leave it behind, along with any additional usage guidelines. A popcorn maker for £30 and bags of popcorn add to the fun.
Coffee maker… Total cost: £1,000 Value per year: £2,120
The £500 Sage Barista Express is a popular bean-to-cup conversion option as it includes a built-in grinder to ensure the beans stay fresh before brewing.
A few tea bags are no longer enough to welcome guests, as they expect a coffee maker that offers a cup worthy of the street. Fortunately, there are machines and beans on the market that can provide the perfect coffee.
The £500 Sage Barista Express is a popular bean-to-cup conversion option as it includes a built-in grinder to ensure the beans stay fresh before brewing. It also has a spout attachment to froth your drink into a latte. Also, budget up to £10 per week for bags of coffee beans.
Also offer alternatives to soy or oat milk to satisfy more modern tastes. Tunney says: ‘Coffee machines used to be an unexpected pleasure, but now they are an essential luxury to show that you have moved with the times. If you want to add even more value, why not include homemade or locally sourced extras, such as cookies, local eggs and honey?
The value is calculated by looking at the typical savings made when four people do not have to buy coffee on the High Street. According to Beans Coffee Club, we each spend an average of £530 a year on takeaway coffees.
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