Lay My Hat

Just finished my first three weeks of renting and what a rush it's been. I have a 4 bed holiday home in Devon, which is about an hour away from where I live. The advice from LMH has been invaluable, however I certainly still made some mistakes when setting up, so hope the following might help others to avoid the same pitfalls.

Firstly the set up costs. These have been way higher than was budgeted for.
- double cutlery and china ( best bone china from Wilko ) because of the dishwasher needing so many extra
- all the glassware
- replacing much of the older furniture I thought would be ok, but was told by the agencies wasn't modern enough
- fire alarms/ smoke detectors ( co2 ones too)
- PAT testing
- stripping the house down too far and being told by the holiday companies to put more back because it was too minimal and clinical

The linens - I thought 3 sets were enough bedding but was so, so wrong. Also needed to have thick duvets, for winter, and thin ones, for summer, bath mats, tea towels, covers for mattress and pillows, etc etc.

Got white cotton bedding from Vision Services. Lovely stuff, washes beautifully. However I didn't realise how much washing there is from a changeover, and how long the local laundry takes - over a week, and that's midweek to midweek. So week one was fine, and that went to the laundry on the Monday of week 2. Ditto for week 2 laundry which was due to go the following Monday. However none of this was available for the start of week 3, which was a disasterous changeover anyway due to the state of the bedding ( one set having turned pink which won't wash out! It was brand new too.). Had to buy extra in a hurry just to get through.

The same with mattress covers. Each bed has a waterproof mattress cover , then a quilted mattress cover on top for comfort ( all from Dunelm) before the sheet. First changeover I had to strip a bed right down including both mattress covers because of marks, ditto the second, and the first wasn't back, so needed replacement covers in a hurry.

First towels were from Matalan and so thick they took ages to dry. So then bought white towel bales from John Lewis ( included 2 each of facecloth, hand towel and large bath towel) and they have been great. The state of some of them at times at the end of a let has been unbelievable, but after soaking them in a bucket of bleach, and then putting them through a very hot wash, they have washed up beautifully white again. The facecloths aren't being used much but will continue to provide them. Thank you LMH for the advice to buy white.

I'm now doing much of the laundry myself, and have bought a steam press which really helps to iron the larger items like duvet covers. Seems to be working well now.

Beds - Should have splashed out on the longer size zip link beds. Didn't realise that not having the extra length of a superking can be a deal breaker for some taller folk. Now having to look to replace the new double, but will rotate it into the large single room, and market it as a superior single!

Storage for bedding, tea towels, complimentary stuff, batteries, light bulbs etc is essential. I've had to give up my small fifth bedroom to storage (luckily it already had a lock on it, as do all the bedrooms). Even so the room is full. ( am meeting the builder this week to see if we can adapt the cellar, which is dry, for storage). ( got the complimentary things from Bookers - tea, coffee, sugar, milk, biscuits, shower gel, hand wash, shower cap, because the first booking came in so fast)

Turnround
The house has 4 bedrooms, sleeping 6. It could go to 8 but have only two bathrooms and wcs and was advised a third one, or an en suite, was needed for sleeps 8. I thought I could manage changeover myself. I can't, even with a 4pm check in. It needs at least 6 hours, and that's pushing it. The second changeover took over 11 hours because of the mess (2 small children, but the baby was ill on arrival , deteriorated during the visit, and ended up in hospital which of course put huge extra pressure on the family. Following discharge from hospital the family returned home one day early, which fortunately gave essential extra time to do the extra cleaning.) I do take a housekeeping deposit but in the circumstances wouldn't use it.

Changing the beds alone takes over an hour. I've now got a company in to do this, so there will be three of us each changeover day. I'm not even sure that is enough folk to turn it all round in the time, especially with the kitchen to clean. Also need a gardener.

The cost of cleaning materials and other consumables - I leave some for the guests but even so am spending a lot on bleach, washing powder etc.

The garden - it's a large garden and things grow fast. Replaced the lawn with good quality fake lawn. Not a huge fan of it but it works really well in the let and always looks nice. Families with toddlers love it. It is certainly saving a fortune on gardening costs because it doesn't need mowing.

If I'm honest I'm still not sure if this is the right way to go for me personally. It's a lot of work and the costs are high - the letting agencies all seem to take around 25% commission, but personally felt if only for the marketing alone it was important to have them. Then there are the usual bills like council tax, electric etc. There are laundry costs (about £50 a week, only now I'm doing it this should fall) and management costs, plus consumables. Then there is wear and tear - both television and microwave packed up in week 2, plus I can't use that set of pink bedding any more. As we go into winter, the income will fall whilst the heating bills go up. I was too late to the market this year, so don't have the bookings. Fingers crossed things will be better next year.

On the positive side I met some lovely folk, who all said how much they enjoyed the house, which was so nice to hear. It all went well - good reviews, with the first folk wanting to extend their stay for a second week, the second returning soon, and the third then leaving me a thank you card and bottle of wine. That does make it all feel worthwhile.

Which agency takes 25%? We have had loads of bookings through Booking.com who also deal with the payments direct and credit our bank account the following month and that is only 15% (I thought that was high!)
I know what you mean about laundry! We only have 2 rooms to let here, plenty of changes of bedding for the king size bed in the double room but could only afford 2 sets of superking size for the other and it's a struggle getting everything washed, dried and ironed in time when we have had 6 consecutive one-nighters!
I feel as if I have spent most of the summer trapped in the ironing room in 30 degree heat!
We are dependent on the sun for drying too (luckily have managed OK) as we don't even have a tumble dryer. Not that I would put the towels in anyway as they always shrink the dobby and look tatty.
Glad it's going well for you though, keep up the good work and hope it goes well for next year.

Hi Sherry, you've certainly had a baptism by fire, but you have learnt quickly. Well done.

I have a similar property to you, 4 bedrooms, sleeps 7, 2 bathrooms, 2 extra WCs, lounge/diner, sitting room, kitchen breakfast room. The housekeeper supplies 2 cleaners at each changeover and it normally takes 8 hours between them. Sometimes less if visitors are extremely clean and tidy, more if they are very messy. We have a 5 hour window for changeover to allow flexibility.

I have 4 sets of linen/towels. This should be adequate but at the end of each season check I always find linen that does not belong to me. It's always of poorer quality so needs replacing. Won't happen to you if you do the washing.

Up until 3 years ago I had a local agent. Now I do my own bookings. It's a lot more work, but financially a no brainer. Also it gives us the flexibility to use the house as a holiday home when we want. The big overhead I still have are the gardeners, around £2K per year.

Hope this helps. Good luck with your venture. Giraffe x

Worth looking into business rates rather than council tax.. At the moment due to rate relief I pay nothing however it depends on the rateable value of the property... mine is tiny and rateable value low...

Thank you for all the helpful replies, and lovely comments.

First though an apology for a typo. I wrote 25% and it should have been 20%. That's because although the agencies are quoting anything between 15% and 17%, that's excluding vat , plus sometimes other extras. By the time it's all added on it's up to 20%. I'd love to be able to manage without the agencies but just don't have the expertise.

Also looked at Booking.com but am wary because it seems as if the guests can book when they like, and cancel right up to the last minute without penalty. Anyone had experience of this?

I'll look at the council tax situation - thanks for pointing that out Rosebud.

I think mine is indeed a similar size Giraffe - 4 beds, 2 bathrooms, kitchen, living room and dining room, and sounds like the changeover times is spot on between the two. Interesting that you find the towels have changed round. It's surprising what goes. I lost a torch to the first group and have just realised my brand new salt and pepper grinders have gone with the last group. Luckily they aren't too expensive to replace.

Just need some more bookings now.

Sherry wrote:.

Also looked at Booking.com but am wary because it seems as if the guests can book when they like, and cancel right up to the last minute without penalty. Anyone had experience of this?

It's all in how you set it up. I have the strict cancellation policy. My listing says:

"The guest will be charged 30% of the total price if they cancel after reservation and the total price if they cancel in the 30 days before arrival"



I also mark my dates as not refundable

I think my "missing linen" issue is a problem with the cleaners getting muddled rather than visitors. I do find that the same items tend to go missing each summer - torches, expensive can openers, pizza cutters, salt/pepper grinders and the proverbial teaspoons. I've stopped buying OS maps for walkers as they have always disappeared. I think visitors probably leave them in their cars and forget.

These missing items, like minor damage/breakages, just go into overheads. Rosebud's suggestion of investigating business rates is spot on. I am saving £2,000+ per year on council tax but have to pay to have the household rubbish collected. If your house is similar to mine you should be eligible - if you fit certain criteria then you are obliged to be on business rates.

This is super-helpful to people like us who are just getting ready to let. Thank you very much for posting it and well done for surviving! Hope you have a great season.

Giraffe wrote:Rosebud's suggestion of investigating business rates is spot on.

Coincidentally, business rates(NNDR) was mentioned in the House of Commons today, by a Cornish MP who described owners who register for NNDR as taking advantage of a "loophole".

It's an interesting and surprising perspective. As I recall, when i set-up 10 years ago, I was told that if I was meeting the criteria set by the government for running a holiday let business, I had to apply for NNDR.

russellt, do you recollect the name of the Cornish MP? I would love to know which of our representatives is not properly supporting our FHL businesses. Thanks, Giraffe

Giraffe wrote:russellt, do you recollect the name of the Cornish MP? I would love to know which of our representatives is not properly supporting our FHL businesses. Thanks, Giraffe

The MP was Steve Double (Conservative) who represents Newquay and St Austel.
I saw this today on Prime Ministers Questions and must admit went 'Ouch' when he spoke in the Commons on this subject.
The MP is seemingly campaigning on this issue.

Yup. Steve Double.

I just dropped him a line at his website https://www.stevedouble.org.uk/contact to ask him why he thinks we are taking advantage of a loophole.

I also happened to mention AirBnb hosts, gas certificates and holiday let insurance in the same sentence. Couldn't help myself.

You never know, he might drop in here to offer an explanation

russellt, do you recollect the name of the Cornish MP? I would love to know which of our representatives is not properly supporting our FHL businesses. Thanks, Giraffe

I wrote to Steve Double at his mp email address (not his local Cornish one).

However, I have an automated reply that says ....."Parliamentary protocol states that I can only assist those resident in St Austell and Newquay.

MPs receive hundreds of emails every week from groups such as 38 Degrees. These take a disproportionate amount of time to respond to and my policy is not to provide individual replies."......

So, I suppose that means we won't get an answer unless we are in his constituency. Hopefully, I have at least made a point.

Anybody here from that particular part of Cornwall? This thread should possibly have a thread of its own as it was really Sherry's thread! I will copy some of this into a new thread.

Well done for making it through your first few weeks Sherry.

I'll add a few random thoughts. I generally buy goods aimed at the commercial market, so for example my linen comes from Out of Eden and withstands all the wear and tear that can be thrown at it.

My crockery comes from Nisbets as I can guarantee being able to match the key stuff like plates in years to come. Others swear by Ikea 365.

I don't have room for two types of duvets, so a 10.5 tog one is absolutely fine for all year round use and I have no complaints.

Beds from a contract supplier such as Hotel Contract Beds or Mattisons. Good quality and a good price.

PAT testing - well agencies will have you believe it's a must but it's not. For anyone reading this do search previous threads about PAT testing. Greenbarn has put together a good post or two in the past as to how to approach this. If you've bought new appliances, then they are guaranteed for at least a year so you certainly don't need to PAT test a brand new appliance. Think about that from year two onwards.

It is a big hit at the outset; I'm just renovating a property now and have grey hairs as I look at my spreadsheet totals climbing ever higher! However, you enter this business for the long haul and the rewards don't come straight away. That's why investing in quality stuff including solid furniture as opposed to cheap flat pack stuff at the outset can be a good business decision.

Maybe in time to come you will feel confident enough to market it yourself and will save on the agency fees. I did an agency for year one then never looked back, although it is very hard work!