Revealed: The investments that will really make a holiday let property pay. Experts pick the best features that can add up to £20,000 a year in value
Renting out a holiday home can give owners a decent income, but investing in six must-have extras can add a pre-tax value of £20,000 a year, experts reveal.
Research by holiday rental company Sykes Holiday Cottages says the average holiday let earns £24,500 a year, before tax.
The most searched for features on its website are a hot tub, followed by wifi, the nearest pub and garden facilities.
It says access to wifi boosts potential income by as much as 55 pc. The next best value-for-money improvement is a hot tub, adding as much as 37 pc to rental value. This is followed by having a child- or pet-friendly property, which together add up to 15 pc.
Holiday let experts share how these and other ideas - such as a fire pit, cinema room and a state-of-the-art coffee machine – are investments that see guests willing to pay more for their stay.
Costs calculated are for the initial investment and yearly upkeep, with the value added calculated for a 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 tub that can accommodate four people start at about £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 such as WhatSpa? can provide guidance on options but you must also consider installation costs. These include budgeting for a four-inch-thick concrete base and an electrician to connect the hot tub to an outdoor power source, adding a further £1,000 plus a £100 cover for when it's not in use.
There are also regular running costs and maintenance fees that will eat into your budget. Expect to refill a hot tub four times a year and use cleaning chemicals, which totals £300. It might also add £600 a year to your electricity bill. As a holiday rental also budget for a £100 yearly service.
Wifi... Total Cost: £540. Value per year: Up to £13,500
Guests usually want to kick back and watch movies on holiday - especially families with younger children - so it is always worth providing wifi
The cost of providing wifi can pay for itself within ten days. You are selling an idyllic dream away from the hustle bustle of modern life – but that does not mean your guests do not want the option of kicking back and watching the latest movies or sharing their holiday fun on social media. You are also investing in providing choice – so you can still opt to market a 'digital detox' service for those guests who would rather escape the net.
You can pay £30 a month for a basic BT broadband package. But most luxury rental guests will expect streaming services such as Netflix. A BT broadband and TV package including a Netflix and Sky Entertainment TV packages can cost £45.
Alex Tunney, of holiday rental company Bloom Stays which has 120 properties across Kent and Sussex, says: 'It is important to advertise internet facilities so guests know exactly what they will receive. Although wifi may be a bonus, you can also make a virtue of not offering it – promoting an off-grid digital detox in the countryside.'
Dog friendly... Total Cost: £180. Value per year: £1,800
Rather than just advertising a holiday home as 'dog friendly' it is 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 be as much as £50 per day, so many guests prefer to bring their dog with them on holiday. But rather than just advertising a holiday home as 'dog friendly' it is worth making sure the dog is treated like a special member of the family.
Tunney says: 'It is important to make the pet feel spoilt – so consider providing a designer dog bed. A jar of dog treats can also provide a pleasant surprise and if you provide details of great dog walks in the areas this is also time well spent – as it can add real value for the guests.'
A luxury orthopaedic dog bed from Baker & Bray costs £140 while a £15 blanket can ensure it stays in great shape for longer. Optional extras such as a £10 chewable toy and £15 jar of dog biscuits are great ideas. Guests will usually bring their own dog bowls and leads but it might be worth providing spares for an emergency. It can also be prudent to budget extra for the cleaning bill.
Firepit and barbecue... Total Cost: £1,200. Value per year: £2,400
'Consider adding a fire pit or a barbecue with self-catering accommodation. A firepit helps guests stay warm on a chilly evening,' says Sykes Holiday Cottages
The outside space of a holiday let should be viewed as an extra room where guests can relax or unwind after a day out sightseeing, adding perhaps 10 pc to rental value.
Sykes Holiday Cottages says: 'It is vital to offer a seating area and there should be enough space for each of the guests booked. Also consider adding a fire pit or a barbecue with self-catering accommodation. A firepit helps guests stay warm on a chilly evening. Garden sofas can be a big hit as they offer a chance to laze outside, reading a book or listening to music. Table areas are another must for offering the opportunity to dine al fresco.'
According to website Checkatrade a cast iron firepit can cost from £100 to £2,000. Include coal/firewood and fire-starters that will set you back £30 per stay. You can buy an outdoor three-seat sofa from Ikea for £400 and a table and six chairs set for £370. A Weber charcoal barbecue is £200.
Cinema room... Total cost: £700. Value per year: £1,800
According to What-Hi? a £500 Epsom home cinema projector might do the trick
Entertainment that provides a reason for the family to stay in is a great attraction, says Sykes Holiday Cottages - and a movie night using a home cinema system is near the top of this list. Although you can spend thousands of pounds on equipment it is best to work on a tight budget as it is easier for electronics to get broken when handled by a guest rather than owners who understand what it costs. According to What-Hi? a £500 Epsom home cinema projector might do the trick. You will also need to budget £100 for a movie theatre screen. Such equipment can easily be hooked up to DVD players or streaming services.
Read the instructions before you let guests loose on the equipment and make sure these are left behind – along with any additional how-to-use guidance. A £30 popcorn maker machine plus bags of popping corn add to the fun.
Coffee machine... Total Cost: £1,000 Value per year: £2,120
The £500 Sage Barista Express is a popular bean-to-cup option – as it includes a built-in grinder to ensure the beans remain fresh before the coffee is made
A few tea bags are no longer enough to welcome guests as they expect coffee making facilities that offer a high-street worthy cup. 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 option – as it includes a built-in grinder to ensure the beans remain fresh before the coffee is made. It also has a nozzle attachment to froth up your drink into a latte. In addition, budget up to £10 a week for bags of coffee beans.
Also offer soy or oat milk alternatives as well to cater for more modern tastes. Tunney says: 'Coffee machines used to be an unexpected treat but are now an essential luxury to show you have moved with the times. If you want to add even further value, then why not include homemade or locally sourced extras, such as biscuits, local eggs and honey.'
The value is calculated by looking at the typical savings made for four people not having to buy coffee on the High Street. According to the Beans Coffee Club we each spend on average £530 a year on takeaway coffees.