{"id":84,"date":"2009-10-20T13:34:55","date_gmt":"2009-10-20T13:34:55","guid":{"rendered":"http:\/\/idostuff.co.uk\/blogs\/?p=84"},"modified":"2009-10-20T13:37:34","modified_gmt":"2009-10-20T13:37:34","slug":"holiday-letting-business-viability-profit-and-loss-v-desirability","status":"publish","type":"post","link":"https:\/\/idostuff.co.uk\/blogs\/2009\/holiday-letting-business-viability-profit-and-loss-v-desirability\/","title":{"rendered":"Holiday Letting business viability, Profit and Loss v Desirability"},"content":{"rendered":"<p>Running a Holiday Letting business is a real option for us.\u00a0It would involve buying a property then running it as a business. Considering actually doing it involves weighing up the desire to have a property in a specific location for our own occasional use against the effort and financial aspects.<\/p>\n<p>I like to work on figures so I&#8217;ve\u00a0created a spreadsheet to model the business. The spreadsheet puts together the income and costs, then makes a simple comparison against alternative investments.\u00a0What it doesn&#8217;t do, is to factor in the desirability of owning and using the property. I also need to consider the time and effort that would have to be put in.<\/p>\n<p>If you are looking at this sort of investment, you might what to download the spreadsheet and plug your own figures in.<\/p>\n<p style=\"text-align: center;\"><a onclick=\"javascript:pageTracker._trackPageview('\/outgoing\/www.idostuff.co.uk\/assets\/Furnished holiday let viability calculator.xls');\"  href=\"http:\/\/www.idostuff.co.uk\/assets\/Furnished holiday let viability calculator.xls\" target=\"_blank\">Furnished holiday let viability calculator<\/a><\/p>\n<p style=\"text-align: left;\"><strong>Brief explanation of the spreadsheet<\/strong><\/p>\n<p style=\"text-align: left;\">Enter your figures in the blue cells<\/p>\n<p style=\"text-align: left;\">Purchase price \/deposit, used further down to factor in mortgage payments and other potential investments.<\/p>\n<p style=\"text-align: left;\">Fees and set up, add on purchase costs and 1 off set up costs<\/p>\n<p>Price per week, check out the\u00a0competition and set likely prices<\/p>\n<p>Occupied, enter f for a full week, 1\u00a0for a 3 day short break and 2 for two short breaks in 1 week. The part week rate gives the price for these.<\/p>\n<p>The graph\u00a0shows the income per week. The sample figures I&#8217;ve used indicate a property that is\u00a0either unpopular or under marketed.<\/p>\n<p>Variable costs Booking related, Agents fee, cleaning per occupancy,gas\/electric per year estimate if fully occupied.<\/p>\n<p>Fixed costs, unavoidable overheads per year<\/p>\n<p>The results of this section are in the Basic Balance Box.<\/p>\n<p>Having the figures in this format allows a quick assment various scenarios. What if we can increase prices? What if we market it better to increase occupancy? etc.<\/p>\n<p>The rest of the sheet is me playing about with considerations for me to throw in to the mix. Answering questions like.<\/p>\n<ol>\n<li>What if I just kept the money in a high interest account.<\/li>\n<li>Whats the growth on the property value<\/li>\n<li>How does it compare against two residential property lets<\/li>\n<li>Whats the cash flow implications taking in to account tax and tax credits.<\/li>\n<\/ol>\n<p>If you get this far down on the sheet let me know and explain it some more.<\/p>\n<p>We&#8217;ve not come to any decisions yet but at least with this we can back up our thoughts with some hard figures.<\/p>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>I like to work on figures so I&#8217;ve created a spreadsheet to model the business<!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[34,35,37,36,31],"class_list":["post-84","post","type-post","status-publish","format-standard","hentry","category-ido-property-stuff","tag-calculator","tag-comparison","tag-holiday-home","tag-holiday-let","tag-property"],"_links":{"self":[{"href":"https:\/\/idostuff.co.uk\/blogs\/wp-json\/wp\/v2\/posts\/84","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/idostuff.co.uk\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/idostuff.co.uk\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/idostuff.co.uk\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/idostuff.co.uk\/blogs\/wp-json\/wp\/v2\/comments?post=84"}],"version-history":[{"count":4,"href":"https:\/\/idostuff.co.uk\/blogs\/wp-json\/wp\/v2\/posts\/84\/revisions"}],"predecessor-version":[{"id":88,"href":"https:\/\/idostuff.co.uk\/blogs\/wp-json\/wp\/v2\/posts\/84\/revisions\/88"}],"wp:attachment":[{"href":"https:\/\/idostuff.co.uk\/blogs\/wp-json\/wp\/v2\/media?parent=84"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/idostuff.co.uk\/blogs\/wp-json\/wp\/v2\/categories?post=84"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/idostuff.co.uk\/blogs\/wp-json\/wp\/v2\/tags?post=84"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}