| Own a second home abroad? Fed up with rising | | | | occupant is providing previously untapped financial |
| costs and falling equity? Then take the steps to start | | | | support. |
| renting out to the holiday market and recoup your | | | | In terms of the practicalities of renting, first of all |
| costs. | | | | there is the matter of marketing. Many people |
| Over the last twenty years or so, the number of | | | | choose to do this themselves, often by placing |
| people owning second homes has increased | | | | adverts in the classified sections of national |
| enormously. This is especially the case where people | | | | newspapers, local papers and the like. Be warned |
| own second homes outside their country of normal | | | | though, response to this type of advertising is |
| residence. What used to be for the privileged few, is | | | | substantially lower than it used to be and it can end |
| now something enjoyed by many from all walks of | | | | up a costly option. There are an increasing number of |
| life. However, the recent economic downturn has | | | | companies offering internet-based marketing for |
| impacted badly on all sorts of luxuries’ and | | | | overseas property rental. For one property, the |
| holiday homes have been significantly affected. If | | | | better-known of these usually charge in the region of |
| you own a second home and have always kept it for | | | | £100 - £200 annually. Overall, this is probably the |
| your own, personal use, now is definitely the time to | | | | better approach, though some homework is essential |
| look at offering it for the holiday rental market. | | | | before parting with any money. Start off by doing a |
| The cost of leaving a second home empty was once | | | | search for the sort of property you have. Does the |
| comparatively small, but this is no longer usually the | | | | company you are looking at appear in the first few |
| case. Insurance and general taxes have increased | | | | results? There are other possibilities, of course. |
| substantially in just about every country in the world. | | | | Offering the property through travel agents and tour |
| Maintenance is also a big issue. Naturally, if you rent | | | | operators is a possibility, but they are likely to want |
| out your home, there is an increased chance of | | | | to take a fairly substantial commission on every |
| breakages and general wear and tear will be higher. | | | | booking, whereas internet companies mostly work on |
| On the other hand, unused properties often suffer | | | | a fixed fee’ basis. You can also offer the |
| problems. Leaving a house empty and unattended | | | | property in the area where it is based. This will initially |
| can lead to disaster. A water leak or something | | | | only result in people looking for long-term rentals, |
| similar can cause untold damage if it isn’t | | | | which is another market altogether. However, people |
| spotted early enough. | | | | on holiday may see the adverts and look at the idea |
| Because of a number of factors, property prices for | | | | of booking in future. |
| villas in Northern Cyprus, and indeed, Cyprus as a | | | | Once you have looked into marketing, the next thing |
| whole, have been particularly badly hit by the current | | | | to deal with is local matters and day-to-day |
| climate, but the situation holds true all over the world. | | | | management. In general, it is by far and away best |
| Spain too has problems, as do most other countries | | | | to have an agent on the spot who can deal with any |
| in Europe. Many people who own Cyprus villas, and | | | | issues. Generally, you would expect to pay anything |
| holiday homes in other countries, are opposed to the | | | | from £100 to £1000 a year, on top of all bills, but |
| thought of renting out their property, but why? Of | | | | the peace of mind this brings is priceless. Whether |
| course, nobody welcomes the ideas of strangers | | | | you are renting a villa in Northern Cyprus, an |
| living in their holiday villa or apartment, but do | | | | apartment in Venice or a mansion in Cannes, knowing |
| problems inevitably follow? In general, it seems not. | | | | that there is someone who will visit regularly, ensure |
| People who offer owners villas for rental generally | | | | all bills are paid and sort out any problems relieves |
| find that their property is looked after very well by | | | | you of a great deal of work. |
| guests. Ironically, but to some extent, | | | | Overall, the problems resulting from renting out your |
| understandably, the better furnished and equipped a | | | | holiday home are few, and certainly help to offset |
| property is, the less problems are likely to occur. | | | | the costs in the first place. Naturally there will be bills |
| People who offer Northern Cyprus villa rental are | | | | to be paid and it’s unlikely you will ever get |
| sometimes resident there for part of the year, but | | | | rich from doing it. In fact, you almost certainly |
| return to northern Europe for the hotter months. Of | | | | won’t earn enough for it to be considered any |
| course, this is an ideal holiday rental situation, as the | | | | kind of income. However, you will end up with |
| demand for property is at its highest during the peak | | | | effectively free holidays for yourself and you will |
| summer periods. For those who have properties | | | | certainly offset all the day-to-day running costs of |
| purely for long-term investment, and occasional use, | | | | maintaining an empty home. |
| are in an even better position, as every single | | | | |