Self catering lodges

[nmb]

I have some knowledge of the Scottish property market and have seen a significant increase in the number of self catering lodges and holiday homes. While there is obviously significant expenditure buying the property and furniture, the running costs seem fairly minimal on a self-catering basis?

I would be interested to hear anybody else's experience of the self catering lodge/holiday home market.

 

[Nicholas Wallwork]

I actually think the running costs can be quite high compared to BTL as there is a larger turn over and cleaning e.t.c. will need to be done to a higher standard (as the accommodation will be compared to hotel standards). Also you'll need to pay agents more for the turn down services (changing sheets e.t.c.) and more checkins and checkouts e.t.c.

I personally don't have any holiday lets but do run a few nightly/weekly rental properties and it is well worth it for us (town center location and more business use not holiday) but the principal is the same. We get about twice the rent even after all extra servicing costs are considered so it can be very worthwhile if you get it right...

 

[nmb]

I think owners would need to self-manage their properties to minimise costs and maximise profits. This is fairly easy if you are local but if you start investing in self-catering properties away from your area I guess this has a number of challenges.

 

[FWL]

Is there an argument for scaling up the number of self catering lodges you have thereby spreading the cost across more properties, increasing your income and maybe selling out in due course? From my limited knowledge of this market, investors are not necessarily interested in buying one self catering lodge, they would rather buy a number in one transaction.

 

[diyhelp]

I know of self catering lodges in Scotland which are booked up every weekend but struggle to fill weekdays. I would have thought the corporate market should be a target for both weekday and weekend markets?

 

[Longterminvestor]

Managed correctly, and designed to appeal to the correct type of client, I think self catering lodges can be mini cash cows. There is also a premium available for many lodges which are situated in some of the beautiful areas of Scotland. Imagine a lodge by Loch Lomond?