me and my parents are thinking of getting a log cabin in the garden to rent out as a holiday let.
has anyone else done this? is it a good investment?
How many bookings should we expect?
I want to know if its going to pay me back as it will require getting the electric company to connect a new line and the water board to give us a new water connection and that is not going to be cheap.
buying a log cabin
At the risk of sounding negative (and I am generally a very posiitive person, especially when it comes to potential business) I am not sure you are tackling this idea in the right way.
Setting up a holiday let requires some level headed thought. Before doing anything, satisfy yourself that you have the necessary consent from the local authority as you will probably need planning permission. Also worth chatting to your neighbours - in my experience not everyone is too keen ln the idea of having holiday makers in the vicinity.
Also, local authorities are not keen on granting permission for "beds in sheds" and the penalty for going ahead without necessary permission is high.
Next, consider why your guests will book - will it be because the location has stunning views or is it near to tourist attractions, local walks etc. Perhaps you are considering being "green" as a USP.
Starting up a holiday let is going to require a considerable investment of time and money and there is far more to it than first meets the eye, as other LMHers will testify.
The vital aspect is going to be trying to see your project from the guest perspective and not your own and that will ensure you have covered all possible angles before embarking on such a project.
And do remember, there are considerable costs involved with actually finding guests, with a website, booking sites etc.
Setting up a holiday let requires some level headed thought. Before doing anything, satisfy yourself that you have the necessary consent from the local authority as you will probably need planning permission. Also worth chatting to your neighbours - in my experience not everyone is too keen ln the idea of having holiday makers in the vicinity.
Also, local authorities are not keen on granting permission for "beds in sheds" and the penalty for going ahead without necessary permission is high.
Next, consider why your guests will book - will it be because the location has stunning views or is it near to tourist attractions, local walks etc. Perhaps you are considering being "green" as a USP.
Starting up a holiday let is going to require a considerable investment of time and money and there is far more to it than first meets the eye, as other LMHers will testify.
The vital aspect is going to be trying to see your project from the guest perspective and not your own and that will ensure you have covered all possible angles before embarking on such a project.
And do remember, there are considerable costs involved with actually finding guests, with a website, booking sites etc.
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We stayed in a lovely old house on the outskirts of Rotterdam once. The owner moved into the wooden building rather then the way round you are thinking.
As to questions about bookings etc. Well that all comes down to your prices, how competitive is he area, location and many many more points.
As to questions about bookings etc. Well that all comes down to your prices, how competitive is he area, location and many many more points.
Never try to out-stubborn your guests.
Hello curlyfry and welcome. I think JanB's advice is absolutely right in every respect. Like casasantoestevo, I once stayed in a small place in Ireland, little realising at the time that the owners had moved out to "a bed in the shed", because they had covered their tracks very well. I don't expect your parents are up for that!
From a practical if not a legal aspect, you may not need to call in the water board or the electricity company. You could run both these supplies from the house (armoured external cable for the electric, of course). It's the sanitation which would concern me.
From a practical if not a legal aspect, you may not need to call in the water board or the electricity company. You could run both these supplies from the house (armoured external cable for the electric, of course). It's the sanitation which would concern me.
ok sorry ill be a bit clearer and ansew some of those questions
the neighbour thing isnt a problem as we live out in the country we have 1 house next door it is rented you wont be able to see the cabin from there place anyway and i know the owner wont care.
Permission the log cabin we where thinking of does not require planning permission.
location we are based in a small village in lincolnshire. On a country lane. very quiet.
Attractions market rasen racecourse, cadwell park, skegness, mablethorpe, lots of country walks one starting from the end of our driveway. Lincoln city shopping the castle the catherdral magna carta ect We also have cerials and lamma and the lincoln christmas markets there are anual and semi anual events that people travel from all over the world to see.
The guests we are aware of how some people can be as my parent have run a small business dealing with the public for 20 years now they want to retire from that as it is very long hours.
the neighbour thing isnt a problem as we live out in the country we have 1 house next door it is rented you wont be able to see the cabin from there place anyway and i know the owner wont care.
Permission the log cabin we where thinking of does not require planning permission.
location we are based in a small village in lincolnshire. On a country lane. very quiet.
Attractions market rasen racecourse, cadwell park, skegness, mablethorpe, lots of country walks one starting from the end of our driveway. Lincoln city shopping the castle the catherdral magna carta ect We also have cerials and lamma and the lincoln christmas markets there are anual and semi anual events that people travel from all over the world to see.
The guests we are aware of how some people can be as my parent have run a small business dealing with the public for 20 years now they want to retire from that as it is very long hours.
And to reply to Andrew the sanitation is the cheapest of those things as my dad is a retired civil engineer we can do all of that ourselves we are not on the sewage grid we have our own tank that is emptied when full that we share with our 1 neighbour it is plenty big enough as my dad built it some years ago
My concern with the water is that if we used the same mains line as the house we would loose water pressure as we have the house and a bakery also in the garden on the same pipe
My concern with the water is that if we used the same mains line as the house we would loose water pressure as we have the house and a bakery also in the garden on the same pipe
You still should talk to the planning officers about the need to obtain permission as this is sometimes more difficult than anticipated because of local constraints.
For example; you may have to enlarge the sewage tank (despite what your father thinks), you may have to apply for a new entrance to the highway, he cabin (sic) maybe considered a new dwelling etc etc.
Re your comment about water pressure loss. I have always thought that water pressure determines the flow of water. So unless you do not have the correct plumbing then you will get a low pressure. If the pipes are too small and the demand is too great then that will result in low flow. Stop the usage at all points and the pressure should be near as damn it the same through out the system. Again you have to talk to the water company, they do not like more than one property connected to the same supply now days.
As to the question about staying in a cabin? It would be ok, but a "shed" not. The very early noise from the bakery could be a step also to overcome.
For example; you may have to enlarge the sewage tank (despite what your father thinks), you may have to apply for a new entrance to the highway, he cabin (sic) maybe considered a new dwelling etc etc.
Re your comment about water pressure loss. I have always thought that water pressure determines the flow of water. So unless you do not have the correct plumbing then you will get a low pressure. If the pipes are too small and the demand is too great then that will result in low flow. Stop the usage at all points and the pressure should be near as damn it the same through out the system. Again you have to talk to the water company, they do not like more than one property connected to the same supply now days.
As to the question about staying in a cabin? It would be ok, but a "shed" not. The very early noise from the bakery could be a step also to overcome.
Never try to out-stubborn your guests.
Putting a building in your garden is one thing, when you plan to use it as a summerhouse or store garden equipment in. I assume you are simply talking about it not needing permission from a size perspective aren't you? Taking paying guests to stay in it? Think again. You will have all sorts of legislation that covers it including fire risk assessments, public liability insurance and more.curlyfry wrote:Permission the log cabin we where thinking of does not require planning permission.
Will you be changing how you split the bill? The neighbour may not willingly accept paying more money if your usage goes up due to guest use.curlyfry wrote:we are not on the sewage grid we have our own tank that is emptied when full that we share with our 1 neighbour it is plenty big enough as my dad built it some years ago
Before you think any further about whether it's financially viable etc, please ring and have a chat with your local planning authority. Start as you mean to go on, down the right path.
Here's an article that might interest you. http://www.thisismoney.co.uk/money/smal ... -shed.html
Regarding planning consent, I see where curlyfry is coming from: http://logcabins.co.uk/planning-permission/' , but for residential purposes, I still wonder if permission is not required, even if all the other criteria are satisfied. If you are connecting foul drainage, Building Regulations consent and inspection may well be needed.
The above link is not working to find it remove the last apostrophe.
From the same page (after giving some details)
Most on that website are not what we would have expected of a log cabin.
Something more like this is a log cabin.
http://www.celticlogcabins.com/
Maybe we are talking about the different ideas.
From the same page (after giving some details)
The quick guide is also useful.It follows therefore that if you have been contemplating your log cabin and position in the garden, it might be prudent to check the new rules and if necessary contact your local planning office for guidance.
Most on that website are not what we would have expected of a log cabin.
Something more like this is a log cabin.
http://www.celticlogcabins.com/
Maybe we are talking about the different ideas.
Never try to out-stubborn your guests.
Setting aside the very realistic caveats regarding Building Control and any permission required for using part of the property as a holiday let business - which should be fairly straightforward to confirm - and trying to throw something in on the financial part of your question:
As an investment, my understanding is that a log cabin will reduce in value as it has a finite lifespan (others might chip in with experience) in which case you may need to consider the annual write-down as part of the costs.
I don't know what the initial cost of a log cabin suitable for commercial letting is, maybe from £35k for a two bed kit, plus all the groundworks, erection etc plus heating, fitting out a bathroom and kitchen, plus furnishings - a big chunk anyway, but I imagine you've got a good idea of costs. (>£100k?)
Returns are very variable depending on location and market and the standard of accommodation you're offering; the first couple of years will be lower as you start out, once you're in full swing a very rough guess might be letting income between say £9k and £15k pa. As a rule of thumb expenses of advertising, energy costs, insurances, repair and maintenance etc etc will account for roughly half, more if you're paying a going rate for cleaning or for a local point of contact/manager to handle issues if you're not available 7 days a week. The sums also change if you decide to put the property with an agency rather than going it alone.
It might also be worth having a look at glamping pods where you could have several for similar outlay to one cabin.
Whichever way you go the hassle factor is significant; don't get into the business if it's not something you're certain you'll enjoy doing, but if you do enjoy it you'll get a good buzz. Investing the same amount of cash could bring a similar return for zero effort.
As an investment, my understanding is that a log cabin will reduce in value as it has a finite lifespan (others might chip in with experience) in which case you may need to consider the annual write-down as part of the costs.
I don't know what the initial cost of a log cabin suitable for commercial letting is, maybe from £35k for a two bed kit, plus all the groundworks, erection etc plus heating, fitting out a bathroom and kitchen, plus furnishings - a big chunk anyway, but I imagine you've got a good idea of costs. (>£100k?)
Returns are very variable depending on location and market and the standard of accommodation you're offering; the first couple of years will be lower as you start out, once you're in full swing a very rough guess might be letting income between say £9k and £15k pa. As a rule of thumb expenses of advertising, energy costs, insurances, repair and maintenance etc etc will account for roughly half, more if you're paying a going rate for cleaning or for a local point of contact/manager to handle issues if you're not available 7 days a week. The sums also change if you decide to put the property with an agency rather than going it alone.
It might also be worth having a look at glamping pods where you could have several for similar outlay to one cabin.
Whichever way you go the hassle factor is significant; don't get into the business if it's not something you're certain you'll enjoy doing, but if you do enjoy it you'll get a good buzz. Investing the same amount of cash could bring a similar return for zero effort.
Just to add an extract from the links above:
so as a holiday let it will need planning approval.In general terms you are exempt from needing planning permission for your log cabin if you can satisfy the following criteria:-
The cabin is not to be used commercially (home office is usually acceptable if it does not detract from the main use of the property).
The cabin is not to be used as a dwelling.
Barking! the lot of you.casasantoestevo wrote:I would do but you may not like the termite-a-tion of the story.log cabin will reduce in value as it has a finite lifespan (others might chip in with experience)
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"There is no human problem which could not be solved if people would simply do as I advise"
"As for my amnesia, I've had it as long as I can remember"
Real name: Steve
Gender: Male