Lowering the maintenance costs of your luxury villa
An overseas villa in a desirable holiday spot can be a dream come true. But keep your maintenance costs low to prevent it from becoming a nightmare!
Lower the Maintenance Cost of Your Luxury Villa
In order to be wealthy and successful, it’s not enough simply to make money. One also needs to be able to sustain and grow that money. Which, in a perilous and unpredictable economy, is more challenging than ever. The global pandemic has made the world’s economies more capricious than they’ve been in living memory. While many of us are diversifying and hedging our bets with a bevvy of unorthodox investments from fine wine and art to classic cars, it’s understandable that many will gravitate towards safe, familiar investments like property. But of the recent restrictions on Buy To Let investment give you cold feet, you may be more inclined to invest in a luxury villa in your favourite holiday hotspot.
Think of it! Your own little piece of paradise that could give you the familiarity of home in a beautiful getaway spot. An investment that could earn you some extra money when not in use. But as any seasoned property investor will tell you, there’s no such thing as passive income. You’ll need to be proactive if you’re to prevent your profits from being subsumed by maintenance costs. Here are some ways to lower the maintenance cost of your luxury villa…
Choose an energy tariff with no standing charges
With so much to consider when getting your property up and running, setting up energy in a rented house may seem pretty far down on your list of priorities. However, your choice in energy supplier and tariff can make a lasting difference to your rental profits. If your property will spend much of the year unoccupied, it may be cheaper to opt for a tariff with no daily standing charges. Although your unit rates will be slightly higher, you’ll inevitably save by not having to pay a charge for days when the property lies vacant. Get in touch with Switch Plan to find the perfect tariff and supplier for your luxury villa.
Don’t forget to offset your expenses
The capital expenses of setting up your luxurious holiday pad are likely to be considerable. After all, you insist on the finer things in life, especially when you’re on holiday. But if you’re renting your holiday home out, these become business expenses. Your accountant will be able to advise on what can be deducted from your pre-tax profits. What’s more, because these items will drive up your probable rental returns, your short term rentals are more likely to be profitable.
Shop around for local cleaners
It’s unlikely that you’ll be able to hop on a plane to clean your villa yourself between short-term rentals. Which means you’ll need to walk a fine line when sourcing a local cleaning company. Fortunately, in the age of AirBnB and other short term letting platforms, an entire arm of the cleaning industry has sprung up to provide this service. A reliable yet affordable cleaner is worth their weight in platinum. It’s reasonable to expect to pay between £150-£200 for a good quality changeover, however, you may be able to find good cleaners who charge as little as £100 for a changeover. Just be wary of being a spendthrift in this department. Poor cleaning can lead to negative reviews, which may see your property lie empty for much of the year.
Fill your property with energy-saving devices
Finally, filling your investment property with energy-saving and / or smart devices can significantly reduce its energy bills in the long term for a modest upfront investment. Set devices and lights on a smart timer so that they don’t waste energy on standby. Use a water meter and water-saving showerhead to drive down water bills. Even something as simple as swapping out incandescent bulbs for LED or CFL bulbs can make an impact.