Want to start a holiday let business at 54, am I too old?
Want to start a holiday let business at 54, am I too old?
Hi everyone. I'm new to this site so please bear with me if their are any mistakes! My partner and I are both in our 50's and would like to start a holiday let business but we haven't done anything like it before. We were both wondering if perhaps we are a little too old to be starting out although financially we are secure. What do you think? Anyone else done this in their mid fifties and how did you find it? Many thanks [/i]
50's too old?! You are my childrens' age!! OH and I started in the holiday let business at the ages of 70 and that was 10 years ago. We saw at as something to do after retirement and it has worked well for us. It's harder work than some might imagine and it keeps us busy, both mentally and physically.
Welcome to LMH, by the way.
Welcome to LMH, by the way.
- Sanchisimo
- Posts: 149
- Joined: Sat Apr 03, 2010 4:01 pm
- Location: Andalucía, Spain
- Contact:
Age is no barrier, but I'll be devils advocate here as we are in the process of winding down our rental business.
It can be rewarding at times but in the main it is a lot of hard work for little monetary gain. Unless you intend to be an onsite owner/manager/maintenance team it can become a bottomless money pit especially if overseas & local bureaucracy when starting out can be a slow, painful process.
For us the best years have been & gone, the industry now so controlled by greedy corporations has changed dramatically, as have the client base with it & that's fair enough. But for me & my better half, now in our 50's the minuses far outweigh any plusses.
It can be rewarding at times but in the main it is a lot of hard work for little monetary gain. Unless you intend to be an onsite owner/manager/maintenance team it can become a bottomless money pit especially if overseas & local bureaucracy when starting out can be a slow, painful process.
For us the best years have been & gone, the industry now so controlled by greedy corporations has changed dramatically, as have the client base with it & that's fair enough. But for me & my better half, now in our 50's the minuses far outweigh any plusses.
This time next year Rodney, we'll be millionaires.
Interesting question .. I started 7 years ago at 63 .. didn't consider my age.
On the whole I have gained a lot of satisfaction ....
Financially I would have probably done better overall with a long term let but in the last financial year did better than I would have with a long term let and am hoping this will continue.
Initially I struggled to find a reliable housekeeper but now have a good one.
There have been some difficult maintenance problems .. my main source of stress.
I am not planning to buy a second property .. think I might have if I was younger.
On the whole I have gained a lot of satisfaction ....
Financially I would have probably done better overall with a long term let but in the last financial year did better than I would have with a long term let and am hoping this will continue.
Initially I struggled to find a reliable housekeeper but now have a good one.
There have been some difficult maintenance problems .. my main source of stress.
I am not planning to buy a second property .. think I might have if I was younger.
am with COYS on this one - started out 15yrs ago at aged 50 & had 12 fabulous years, but everything changed 3 yrs ago - far more competition, OTAs have too much control, guests attitude has changed. Still have our regulars who have kept us going the last 3yrs, but getting new guests through the door is challenging. We have B&B as well as 2 holiday rentals & live on site. The work is hard, rewards are good in that we have made some great friends & welcomed guests from around the world, but last 3yrs has finished us & this year B&B business has died - still have plenty of regulars, but new bookings are very few as we can no longer compete with the prices of airbnb, new very cheap B&Bs & holiday cottages accenting 1/2 nts stays for groups. Here in our part of SWFrance we feel the 'boom' is over. My original French colleagues from back in 2003 who were at same standard (around 75/nt) have all closed down bar 1 who is also for sale. Looking forward to retirement....
My wife and I started our holiday let 3 years ago when we were in our late sixties so starting out in your mid fifties is a 'breeze'.
Initially we made some mistakes but 'learnt lessons' fairly quickly and this forum is excellent for help and advice.
Fortunately we live nearby to our holiday cottage thus we do all the cleaning, maintenance and also 'meet and greet' our guests when they arrive.
In our village it is quite a competive market with new holiday lets'springing up' every year.
For the last two years we have made a small profit but not a fortune and certainly not enough money to keep my wife in 'ermine and pearls'.
The business does keep us occupied and in the main have we met some wonderful guests.
So good luck with your venture
Initially we made some mistakes but 'learnt lessons' fairly quickly and this forum is excellent for help and advice.
Fortunately we live nearby to our holiday cottage thus we do all the cleaning, maintenance and also 'meet and greet' our guests when they arrive.
In our village it is quite a competive market with new holiday lets'springing up' every year.
For the last two years we have made a small profit but not a fortune and certainly not enough money to keep my wife in 'ermine and pearls'.
The business does keep us occupied and in the main have we met some wonderful guests.
So good luck with your venture
Keep your powder dry.
I'm 71 and started 20 years ago. Age is not a problem, but the business is not easy. I only went into holiday letting in order to keep the family holiday home after going through a divorce. It' s a lot of work, with added issues and costs due to being an offsite owner.
I make a very small annual profit, but my reward is a lovely holiday home which we regularly use for family holidays.
BUT, with my business hat on, I would not invest in a holiday let if I had money to invest. Before you go ahead I would suggest you trawl right through LMH for information - there's lots of great advice thoughout the site and information on the issues you need to consider and the types of problems that you might hit.
Giraffe x
I make a very small annual profit, but my reward is a lovely holiday home which we regularly use for family holidays.
BUT, with my business hat on, I would not invest in a holiday let if I had money to invest. Before you go ahead I would suggest you trawl right through LMH for information - there's lots of great advice thoughout the site and information on the issues you need to consider and the types of problems that you might hit.
Giraffe x
The best things in life are free
Interesting posts as usual. Re whether i would put new money into a hl venture i reckon here in mainland Spain you can gross 6% yield, net 5 if you do it all yourself.
My uk btls avg c 3.5% for new purchases so hl still pays.
Saying the above i continúe to see new people losing loads by buying the wrong property and not listening to their guests.
Good luck btw, i have had a good run and met some really nice people.
My uk btls avg c 3.5% for new purchases so hl still pays.
Saying the above i continúe to see new people losing loads by buying the wrong property and not listening to their guests.
Good luck btw, i have had a good run and met some really nice people.
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- Posts: 231
- Joined: Fri Jan 01, 2010 1:12 pm
- Location: Lake District
we started 20 years ago aged 40. The business changed 3 years ago due to OTA's wanting their cut. There is a lot of competition in our area and getting bookings is a hard slog. It would be better financially if we lived near or on site and could do cleaning maintamance ourselves. Having said that we do get a lot of bookings 40 weeks last year with a very good profit, but I do feel it would be easier and less stress, same or possibly more money if we had several long term lets instead. So we plan to go down that route in the next few years. Good luck but think carefully about what you want a hobby or a business?
I wish I was on the golf course
I'm also with Coys on this one. Started 16 years but so much has changed the last 3 that I'm losing interest in it all. Thinking of retiring from it next year. We own 2 properties in Spain and I have been renting over the years 60others but its too much red tape now and not the same profit or satisfaction. The OTAs have changed beyond recognition but for me so have the guests, not for the better either.
I'm also in the 'hoping to be out of it soon' camp, as others have said it is a much harder slog these days due to the OTAs and also how clients have changed. In the main we have decent guests but even their idea of what is acceptable and what isn't concerns me. Add to that the amount of time you have to spend marketing it, maintaining it, managing guests, dealing with issues; everything from floods, equipment breakdowns and plumbing issues to problems caused by the guests themselves.
You either have to be on site or have a very good manager. Cleaners are hard to find too.
If it's a hobby thing then take up something that won't waste your Saturdays waiting for phonecalls from guests about things you've explained but they've neglected to read. Or your holidays fixing things that need doing but you can't find anyone reliable.
If it's a business then make sure the figures and the hassle factor stack up.
Me....I'd only do it again if I had a small casita on site dealing with no more that 4 guests, and I wasn't desperate for the income.
Good luck researching and working out if it's for you,
Mousie
x
You either have to be on site or have a very good manager. Cleaners are hard to find too.
If it's a hobby thing then take up something that won't waste your Saturdays waiting for phonecalls from guests about things you've explained but they've neglected to read. Or your holidays fixing things that need doing but you can't find anyone reliable.
If it's a business then make sure the figures and the hassle factor stack up.
Me....I'd only do it again if I had a small casita on site dealing with no more that 4 guests, and I wasn't desperate for the income.
Good luck researching and working out if it's for you,
Mousie
x