overseasinsuranceHoliday home owners take a huge risk every time they let their holiday homes to strangers. With the summer season fast approaching many owners are now considering whether or not to let their property, and if so which rental agent should they use?
Holiday letting can be lucrative, however before letting consider the following advice;
Before letting your property there are a few questions you need to ask yourself:-
- How do I choose a good letting agent and avoid the unscrupulous/ bogus letting agents?
- Does my insurance cover me to rent my property?
- Can I manage the lettings myself?
HOW DO I CHOOSE A REPUTABLE LETTING AGENT?
Some rental agents request large sums of money up front to advertise your property. Some take your money and do not deliver any rentals. How can you avoid the pitfalls?
- Do extensive research on the web, checking sites where complaints, comments relating to poor service may be posted:-
www.theanswerbank.co.uk
www.complaintsboard.com
www.overseascafe.com
www.ripoffreport.com
www.singingpig.co.uk
www.canyoutrustthem.com
www.scamfound.com
- Visit Owner Forums where you can interact with like minded people and ask for rental company recommendations. These sites are often country specific and therefore if you are buying in Bulgaria you will receive recommendations of rental agencies that operate in Bulgaria.
- When you are close to making a decision use the Owners Forums to ask for feedback on a particular rental company
- Speak to other owners in your complex and discuss who they use and how happy are they with their choice.
DOES MY INSURANCE COVER ME WHILST MY PROPERTY IS RENTED?
- Owners need to protect their investment against damage from holiday makers and insurance bought in the UK offers comprehensive cover to ensure you do not lose out financially.
- Insurance purchased abroad is often cheaper; however it rarely includes accidental damage whilst the property is let.
- Accidental damage caused by guests can be minor e.g. broken crockery, soiled linen etc; therefore taking a deposit to cover small incidents is a good idea. However there will be times when the damage exceeds the deposit therefore ensure your cover includes protection against accidental damage.
- Theft cover is often restricted to there being evidence of force and violence to enter or exit your property. This means if the property is entered by a key the claim would not be covered.
- As we are not tied to one specific insurer we can offer cover with or without this restriction.
- Public liability cover that incorporates holiday letting is vital. Cover arranged through www.overseaspropertyinsurance.co.uk includes £5 million protection. You do not want to have to pick up the legal costs should legal proceedings be filed against you
DO I NEED TO USE A LETTING AGENT?
An alternative is to handle the letting yourself and simply advertise your property on the internet. There are number of sites that offer this facility (not limited to those below):-
- Advertising on any of the above provides a cost effective way to market your property worldwide and connect with the millions of travellers seeking the space, privacy and value of a private holiday home.
- Costs to advertise are relatively low compared with utilising a rental agency, and mean you stay in control
- Consider if letting your property whether long term is a better option. Letting your property on a 12 months lease may deliver less rent per month however occupancy is guaranteed.
FINALLY
If it sounds too good to be true it probably is!!
Do as much research as you can
Speak with your insurance company to ensure you are fully protected whichever option you choose
Filed under: Rental Advice
Just found this blog – and this article. I’m new to holiday home renting – and I have been cautious about the legal situation. Good advice here about ensuring that you have the right insurance, pretty much for everything: contents, buildings, public liability, etc. Thanks for the tips.