Buy a static caravan to rent out – Pros & Cons
Whether you buy a static caravan to rent out or a lodge they are both very similar in regard to the management aspect. A lodge will of course attract a higher amount per week, however if you opt to buy a static caravan to rent to holidaymakers, the initial investment will be far less.
Many people looking to buy a static caravan or lodge wonder whether they should rent it out or not. There are many aspects you need to consider when making a decision on whether to sublet your holiday home. This article discusses the pros and cons of renting out your static caravan or lodge and will help make the right choice for you.
Pros of renting out your static caravan or lodge
Letting income – People who buy a static caravan to rent out can see a healthy return on their investment. With holiday makers willing to pay up to 3000 per week its no wonder many people and investors buy static caravans and lodges to rent out.
Full managed letting service – Many holiday parks offer a fully managed letting service where they handle all the bookings for you. Taking care of cleaning, linen, checking, booking and queries. This leaves you to enjoy holiday home ownership and the income without lifting a finder yourself.
Putting your holiday home to good use – Allowing other people to use and enjoy your holiday home can be rewarding. It maybe you are not able to use your holiday home all the time due to work and family commitments. So why not let another family enjoy your holiday home also whilst earning an extra income along the way!
Make holiday home ownership affordable – Subletting your static caravan or lodge can mean the difference between having a holiday home or not. You may be happy to purchase the holiday home however find the yearly ground rent and associated fees unfeasible. If you sublet, you may offset your running costs all together leaving you free to enjoy holidays when not let. This is a great compromise allowing you afford the luxury lifestyle holiday home ownership brings.
Tax advantages – Are you aware of the great tax breaks available if you let your static caravan or lodges for a certain number of weeks per year? Run your static caravan or lodge as a rental business and you can claim for certain costs associated with running your holiday home rental business.
Afford a better holiday home with all the mod cons – If you decide to rent your static caravan or lodge you may decide to purchase a better model to enhance your letting income and enhance the overall comfort of your holiday home. The extra money you could earn from bookings and the level of comfort you will have when you use will be worth it! Certain features which may appeal to holidaymakers include:
- Entertainment system including music streaming
- Hot tub
- Decking area
- Extra wide model
- En suite bathrooms
- Upgraded furniture, fixtures & fittings
- Wine cooler
- Washing machine & dishwasher
As you can see, there are many pros to renting out your static caravan or lodge. With a little thought and organisation, you can really make renting out your holiday home work for you.
Cons of renting out your static caravan or lodge
Slightly less flexibility – Should you decide to buy a static caravan to rent out, you will need to commit to dates you want to rent. It could be you feel like using your holiday home at times when rented. Not renting out at all give you the flexibility to use as and when the mood takes you.
Your static caravan or lodge will incur greater wear & tear – With your caravan or lodge being rented out you are bound to incur greater wear and tear on the carpets & soft furnishings. It could be you are super house proud and want to keep things in the best condition for the longest amount of time. With subletting this will be a harder task due to the amount of people you will have using your holiday home
Damage to your static caravan or lodge – With renting out there is always a risk your holiday home could get damaged, either accidental or malicious. Whilst you can be insured for this kind of issue it can still be a hassle to claim and sort out repairs or replacements.
Costs associated with renting your static caravan or lodge – Whilst it is true your rental can demand a great income there may be small costs which you need to allow for. This may include:
- Safety checks on gas, electric, fire extinguisher and safety alarms
- Commission and admin charges due to an agent
- Tax to be deducted from rental income
- Minor repair charges not covered by insurance
The feeling the static caravan or lodge is not truly your own – With owning your own static caravan or lodge you get a sense of pride of ownership. This is your escape, bolthole and second home. If you buy a static caravan to rent out only then you may lose this sense of pride and ownership. This can depend on how often you let and the reasons you have the holiday home for however something to consider.
As you can see there are many pros and cons to renting out your static caravan or lodge. This article has given an honest balanced approach which I’m sure will help you make that all-important decision for yourself. Also, worth remembering with letting your holiday home, it isn’t a lifetime contract. Usually you would commit to letting for a season so you can always try it out to see if it works for you and how much profit you make from it.
Thank you for reading!
Are you considering buying a static caravan or lodge on a holiday park which allows subletting? Parklink have grouped together all parks which allow subletting where some even offer a managed sublet service so can do all the work for you! Click here to view all parks on a map now and enquire direct.