Subletting your caravan holiday home is a great way to offset running costs.
There is no doubt that the credit crunch, inflationary pressures, increasing costs of mortgages, ever higher utility and fuel bills have all combined to create a challenging trading environment for the holiday industry.
Like last summer there is a significant risk that holiday makers will once again cut back on the number of overseas holidays they take and there are a number of mitigating factors which help to improve the outlook for UK holidays in particular:
- The falling value of the pound makes the popular Euro Zone destinations relatively expensive.
- Environmental concerns make holidays with a low carbon footprint increasingly popular.
As a result the demand for UK holiday park holidays is continuing to grow for both week long and short breaks caravan and lodge holidays. As an caravan owner you can look to capitalise on these factors by subletting your holiday park home during the times when you and your family aren't enjoying it.
From an financial investment point of view, owning and running a caravan or lodge holiday home purely as financial investment is not always the wisest thing to do (for more details view our DON'T Buy A Static Caravan To Make A Profit article). BUT subletting allows you to enjoy the lifestyle investment that you've made at a much reduced rate. By simply renting out your static caravan to holiday makers for a small number of weeks each year you can offset your anual running cost, and if you work hard at it you might even see a small return.
There are 2 main ways in which to go about subleting and hiring out your holiday home, they are:
Each have their good points and downside that are dicused in other articles that you'll find published on our website, although the general consensus is that you can generate much more income from privately subletting.
The are a number of factors to take into consideration in order to asses an owners potenial income are many, and include
- The quality of your holiday home.
- How old is it?
- How many bedrooms does it have?
- What size is it?
- Has it got Db glazing and central heating?
- The facilities your park has to offer.
- The regional location of your park.
- The week you plan on making your caravan available.
- How oftern you rent out your caravan.
To help you understand the differences in usage and the potential sublet income have a look at the example below:
The Young Family with 2 children
- Purchased a new luxury DG and CH 6 berth static caravan
- Use Static Caravan in all peak season school holidays
- Lend to friends & family for 6 weeks per year
- Rent out sporadically off season via the parks managed subletting scheme
Income from subleting: LOW
The Retired Couple
- Purchased a 3 year old 6 berth standard specification static caravans
- Have a 2 week holiday with family & grandchildren in peak season
- Have numerous off season mid week short breaks
- Rent for remaining time via the parks managed subletting scheme
Income from renting: MEDIUM
Young Professional Couple
- Purchased a new 6 berth standard specification static caravan
- Rent their static caravan throughout the off & peak season
- Only use for occasional weekends off season only if no previous bookings are made
- Privately manage their subletting themselves
- Market their caravan online
Income from renting: HIGH
*please note the information provided in these articles are for information purposes only and represent the views of only one of our users. Please take independent legal advice before purchasing/implementing.
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