How to save money when renting out your holiday home

Renting out a holiday home is a fantastic way to secure additional income, but a few hidden fees and commitments could crop up along the way. Have you been thinking how to save money when renting out your house? If you’re savvy about it, there are plenty of ways to cut down on costs and increase your profits. And more money could mean more travels, couldn’t it?

The good news is you can still save money on your holiday home without raising your prices.

How can I reduce my holiday home costs?

Check for tax relief

You may be eligible for tax breaks, which can offset some of your fees. 

For example, certain tax laws could be beneficial for furnished holiday lets in the UK. However, you’ll need to make sure that your property is available for bookings for at least 210 days of the year, with bookings secured for at least 105 days.

You might also be able to claim Capital Gains Tax reliefs, classed as a business asset against an investment. If you’re eligible, you could be entitled to capital allowances for fixtures, fittings, and furnishings. Lastly, profits could count as pension contributions, ready to be enjoyed at a later date.

Conduct regular checks to save money on your holiday home

As regularly as possible – and ideally after each booking is complete – try to have a look around the property, especially if it’s due to be empty for a while. 

During your checks, make sure that no appliances are left on, and no windows are left open. These kinds of mistakes could unnecessarily increase energy bills or even lead to theft or damage.

Renting out your holiday home isn’t always straightforward, and you could still encounter issues after making the right checks. We’d always recommend obtaining comprehensive holiday home insurance, which could help to protect you against unforeseen circumstances.

How to save money when renting out – Reduce your energy bills

Try to do some research and find out if any special offers from gas and electricity providers are available. We’d suggest choosing an online tariff, which could save you money. Paying by direct debit may also be more manageable while using energy-efficient appliances can help you keep on top of your usage.

Landlords are paying more than ever before to heat their properties. With household energy bills increasing by 80% in October 2022, more rises are still on the horizon.

Insulating the property effectively…