UK Cottage Rental - How To Really Get Your Business Going

Your holiday cottage is a very valuable asset as well as being a nice place for you and you family to stay in. Getting to best rental yield is key to making profits in this market niche.


Your money comes from 3 key directions:


  • Property price inflation - hopefully you've already bought in an area with above average stats.
  • The weekly rental value
  • The occupancy rate


I want to talk about the occupancy rate. If you get your property fully let, you can afford to price more highly. Weeks let x weekly rate = income.


If you achieve more than 50% occupancy rate then you are doing better than the average. Pricing here is quite critical, because if you were to loose just one week's rent, then you've lost 4% of your gross income. The pecentage loss to your profits is even higher.


On this basis if you dropped your prices 10%, but your bookings went up to 75%, your gross income would be 35% up. -- Occupancy is what really matters, far more than weekly rates.


You are better off keeping the weekly rates generously low until your occupancy stats are high. After you've been in business for a few years, you will have, hopefully, got some re-bookers. This helps greatly and shows you're doing some thing right.


Does your cottage really offer what the people want? The trendy modern traveller requires a bright modern cottage, nice kitchen, clean, child friendly. Get rid of that 50p electric meter! Get central heating. Get the property up to date. If your cottage is not as nice as my own home, I will not want to stay in your cottage. Get a TV with reception. Get a DVD player.


I need wireless broadband access when I'm travelling and so do all the trendy modern travellers nowadays. (Why do holiday cottages so often lag behind the times?) WIFI enables me to work on holiday (very valuable). I can find local information, weather, banking, manage my own rental properties.


The other way to get bookings pouring in is to look carefully at your advertising. In the old days the Tourist Information was the way, or travel agent shops. Then came the Cottage-rental brochure companies from the back of the Sunday papers.


But nowadays things have changed and the Internet is King. This is where you must advertise your holiday cottage to keep on top of the market.


Max Walker is an internet freelance specialist working on Real estate management at present and UK Cottage Rental. The newest project is http://www.uk-cottage-rental.co.uk which focuses in on Ambleside in the Lake District.


Source: www.articlesbase.com