Sunday, July 14, 2013

Property Rental for Income

I have been thinking again about ways to make a passive income. I have had an idea about investing in holiday homes to rent out as my husband was talking to someone who was selling theirs. We will need to do a lot more research before we decide whether this is the right idea for us. It seems that on holiday sites, people can put their own static home that they have bought. They are then able to use it  themselves but also rent it out/ they will have to advertise it themselves though, through their own website. It will mean that you would get a 'free' holiday but also the chance of getting an income form the place as well. Of course there would be costs such as land rent, insurance, costs for the site, upkeep and maintenance, a caretaker to clean and change the beds each turnover day and marketing. It would obviously be a very seasonal income as well.

This would not truly be a passive income unless someone was paid for managing the whole lot. Obviously book keeping would need to be done, organising decorators if necessary or repairs or doing this yourself and dealing with bookings and enquiries. However, it could possibly be a good way to earn some income even in to retirement and so is something that we will be looking in to, with regards to costs to see whether it is worth it.

An alternative would of course be renting out a property. However, the attraction of a static holiday home is that they are very much cheaper to buy.

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