Rules & Regulations for Letting a Holiday Home

holiday home

staycation

Owning a holiday home can be a dream come true, but it can also be a significant financial commitment. If you're not using your property year-round, renting it out can become a smart way to generate income, offset your initial and ongoing costs, and share your haven with others. The UK staycation market is booming right now, with many seeking comfortable and convenient domestic getaways, but also an opportunity to rent out a holiday home.

This comprehensive guide will equip you with the knowledge and strategies to successfully let your holiday home. First and foremost, you will need to understand some of the legal and insurance requirements that will be necessary.

Legal Requirements for Letting a Holiday Home

Letting out a holiday home requires adherence to many safety regulations to ensure the wellbeing of your guests. From annual gas safety checks to Portable Appliance Testing (PAV) on electrical appliances, there are rules and regulations that you will need to comply with in order to provide a safe and enjoyable environment for any guests.

Obtaining Permission: Before welcoming any guest, you will need to obtain explicit permission from your holiday park. Many parks have specific rules when it comes to subletting, including restrictions on rental periods, guest numbers and some parks also have their own pet policies.

Getting Insurance: Your standard holiday home insurance policy might not cover letting, so it’s important to contact your insurer to discuss your plans and ensure you have adequate coverage. Crucially, you'll likely need public liability insurance to protect yourself financially if a guest suffers an injury or if the property is damaged during their stay.

Gas & Electrical Safety: There are also legal requirements when it comes to making sure of the safety when letting out a holiday home, and this includes ensuring that gas and electric are fit for purpose. You can arrange an annual gas safety check by a Gas Safe registered engineer for all gas appliances. For electrical safety, you will need to ensure all electrical installations and appliances are safe and in good working order, and both the gas safety and portable appliance tests need to be carried out annually as well.

Fire Safety: You must also ensure your holiday home meets stringent fire safety rules and regulations. You will need to equip your holiday home with smoke alarms, a fire extinguisher, carbon monoxide alarm and a fire blanket. Providing any potential guests with information on escape routes and emergency contact numbers is also necessary, as is installing a carbon monoxide detector to alert guests to potential dangers.

Data Protection & GDPR: When you collect guest information such as names, addresses and payment details, you're handling personal data and must comply with the UK General Data Protection Regulation (GDPR). This means storing people’s data securely, using it only for its intended purpose and not keeping it longer than necessary.

By addressing these legal and insurance aspects, you can ensure a smooth and compliant rental experience for both you and your guests when you let your holiday home.

Costs to Know About

There are of course initial prices that you will need to consider with holiday homes. One key outlay beyond the initial purchase will be how much holiday home insurance costs, and while it can range from £200 to over £1,000, there are several factors that can affect the price, including:

Location of the property, its value, existing security features, how often the property is occupied, cover levels for the home and its contents, your agreed excess, and any optional extras that you feel are necessary.

Other Rules and Regulations to Consider

There are also some other factors you might want to consider when it comes to holiday homes, and here are some of the key questions for you to know the answers to:

How Long Can You Stay in a Holiday Home?

If the property is designated specifically for holiday use, there could be some restrictions on the number of consecutive days you’re allowed to occupy it within holiday parks. Some locations require holiday homes to be used for leisure purposes only, rather than being a place of permanent residence.

Do You Need to Pay Council Tax on a Holiday Home?

You will not need to pay council tax on a static caravan that you are letting out, but if you are letting out on a holiday park, for example, you will need to be aware of any site fees that cover waste disposal and maintenance services.

Do Holiday Homes Count as Second Homes?

For a static caravan, no. Static caravans are typically not considered as second homes in the same way that a bricks and mortar holiday home would be. This is because holiday parks often have rules preventing you from using the caravan as your main place of residence, and they are technically movable structures unlike a permanently fixed holiday home.

Can You Rent a Holiday Home?

Yes, you can rent a holiday home but there are many variables, and rules and regulations that you need to be aware of beforehand. We have written a Complete Guide to Renting Out Your Static Caravan, which examines some of the things you’ll need to know when renting out.

Do You Pay Stamp Duty When Purchasing a Holiday Home?

No, you will not need to pay stamp duty land tax (SDLT) on a static caravan. This tax applies to the purchase of land and property – rather than in this case the static caravan.

At Victory Leisure Homes, we sell to a range of holiday parks in locations such as Yorkshire, Cornwall, Scotland and the Lake District, and including relevant information or images about each specific region can help you get bookings.

How to Prepare Your Holiday Home for Letting

When preparing your holiday home for letting, there are also some other considerations that you will want to consider; making sure your guests have the most comfortable and stress-free stay. Some of these steps you might want to consider include:

Prioritising Immaculate Cleanliness: Ensure your property is spotless before each guest arrives. This includes thorough cleaning of all rooms of your holiday home. It’s also important to not neglect the exterior – tidy the garden, cladding and decking, and ensure any outdoor furniture is clean and inviting for your guests.

Maintaining a State of Excellent Repair: Regular maintenance prevents unexpected issues from cropping up that could otherwise disrupt a guest's stay. Address any necessary repairs promptly, such as leaky taps, faulty lighting or malfunctioning appliances. You can take this time to ensure the heating, hot water and plumbing systems are in perfect working order too.

Providing Essential Amenities: Equip your property with all the essentials that your guests will be expecting, including kitchen utensils, crockery, fresh bed linen and clean towels. Enhance the guest experience by providing additional extras such as Wi-Fi, a smart TV with streaming services, a barbecue grill or comfortable outdoor seating.

Offering Ongoing Support: This can sometimes be overlooked when it comes to letting a holiday home. Making sure you’re available to address any questions or concerns during the guest's stay is a crucial part of ensuring the best possible stay for your guests.

Take a look at our blog page for more holiday home inspiration, including ‘The Evolution of the Staycation’ and ‘The Best UK Holiday Parks for Families’.

Conclusion

There are many ways to reap the rewards of letting out your holiday home and this can be a fulfilling venture, providing financial benefits and allowing you to share your cherished space with others. By meticulously preparing your property, understanding your legal obligations, setting fair and competitive rates, marketing effectively and prioritising guest satisfaction, you can unlock the full potential of your holiday home and create a thriving rental business.