Holiday
Lettings

Landlord Services

Bournecoast currently manages hundreds of properties each of which is administered according to the landlord's specific needs, whether they are seeking a premium income through holiday and winter lets or a greater degree of security provided through long term lets, whilst also benefiting from a range of the following services and benefits.

  • 3rd generation family business providing quality accommodation for over 60 years in Bournemouth, Poole, Christchurch and the surrounding areas.
  • a true commitment to our landlords, some of whom have been registered with us since the days of the Directors grandfather was running the company.
  • national advertising, through features, national publications and Social Media campaigns.  
  • a marketing team who work tirelessly on developing marketing campaigns to generate more holiday bookings for our clients.
  • Bournemouth & Poole Tourism membership and advertising through the local Destination Tourism Associations.
holiday owner services
  • a dedicated customer service department and out of hours service for all managed properties.
  • we have a large database of existing clients that book with us year after year.
  • the option to have linen and towels provided at the property at no additional cost to yourself.
  • external portal website advertising (holiday lettings - trip advisor - owners direct - homeaway - airbnb).
  • 15 dedicated staff each with a significant role to play in the managing of your property, through the summer and winter periods.

Tax benefits

Furnished Holiday Letting: The Benefits

Owning a holiday let can be very advantageous. Not only does it provide enjoyable holidays for your family and friends, it provides a potentially lucrative additional income. Here we explore the many benefits of becoming a Furnished Holiday Let (FHL) and explain how your property can qualify for this status.

What is a Furnished Holiday Let? 

A Furnished Holiday Let, also known as a FHL, is a certain type of rental property classification in the UK and Ireland (and other European countries). This classification provides certain tax advantages to holiday let owners. There are specific requirements a property needs to meet in order to be classed as a FHL, such as its availability, actual bookings and level of furnishings. For further information please use the HMRC Helpsheets.

What are the advantages of a Furnished Holiday Let?

Kitting out your property can be tax redeemable 

Capital allowances can be claimed on your FHL property. This means the cost of kitting out your cottage to a luxury standard (and in return, increasing your potential rental income) can be deducted from your pre-tax profits. This isn’t an option available for long-term rental properties.

For more information on capital allowances, view the HS252 Helpsheet.

Make tax-advantaged pension contributions

Income generated from a FHL property is classed as ‘relevant earnings’ which means you can make tax-advantaged pension contributions.  For more information on this, see the HS253 Helpsheet

When you sell your property

If you should come to sell your FHL property, you are able to claim certain Capital Gains Tax (CGT) reliefs. These are unavailable to long-term rental properties and include:

Split the profits between your husband/wife

If you share the ownership of your FHL with your husband or wife, profits can be flexibly distributed between you both for tax purposes. With long-term rental properties, profits would be distributed according to the official ownership split (eg. If you owned 50% of the property, you would share 50% of the profits). With a FHL property, you can portion the profit however you decide. For more information, see here.

Goodbye Council Tax

A self-catering accommodation which is available for short-term lettings for more than 140 days in any given year, is subject to Business Rate property tax. Since all FHL properties must be available to let for a minimum of 210 days, they fall into this category. However, this isn’t necessarily bad news as you can claim Small Business Rate Relief, which can be up to 100% (dependent on what area you are in). Therefore, goodbye to council tax!  Find out more information on Small Business Rate Relief.

Inheritance Tax

The special treatment does not extend to inheritance tax but complete relief from this tax may be available where the lettings are short term and the owner is "substantially involved" with the holidaymakers. The owner may use an agent, which the taxman suggests should be a relative or a housekeeper. However, a commercial agent such as Bournecoast may well be able to provide a restricted ongoing service if inheritance tax relief is sought in addition to the other relief's.

Please note that all details printed within these pages are for information purposes only and are not to be taken as Financial or Tax Advice. To obtain Financial Advice or Tax Advice you will need to speak the relevant specialists about your particular circumstances.

FAQ’S

Will my rental income increase?

The Rental Income should increase considerably during the summer months and there will also be an increase in the rental achieved when the accommodation is occupied with Company Lets during the winter months. The greatest financial benefit of such property investments is usually the Capital Growth of the property during the time it is rented, if it is held as a long-term investment.

Can we or our friends use the property?

Some Holiday Accommodation Agents will restrict personal use, however Bournecoast Holidays allow flexibility in Tenancies and Holiday Lets and will attempt to accommodate any requests you have for using your accommodation yourself or for your family. We do request that you provide us with a minimum of six weeks in the peak season.

Aren't furnished holiday lets just too much hassle?

You can get as involved as you want to. Bournecoast Holidays are there to take the hassle away from you and offer Landlord Services from Bookings Only to Full Management (specifically designed for people that live out of the area). Our Full Management Services allow a Landlord to enjoy the benefits of an Investment Property without being involved with the day-to-day management.

Does the property need to be furnished?

The property must be fully furnished and must include everything you would expect in a property when you go on holiday. A recommended Holiday inventory list and list of recommended suppliers in the local area can be provided by Bournecoast Holidays.


 

Will the property be booked all year round?

The Holiday season can be as long or short as you want it to be. Bournecoast Holidays recommend a Holiday season of approximately 20 weeks to prevent vacancies occurring during the winter months. During the winter months Bournecoast Residential can market your property for Winter Lets, Company Lets, Student Lets or Short Term Lets to clientele such as the following:

  • Professionals from AMEX, JP Morgan • Anglo European Chiropractic Students
  • Air Traffic Controllers & Trainee Pilots • International Business Professionals
  • Theatre Performers • Foreign Language Students
  • People in between houses • Bournemouth University Students

Will my property be looked after?

Holiday accommodation is checked on average once a week during the changeovers. Bournecoast Holidays do not accept all single parties without special permission from owners; the majority of visitors are families. Any restrictions can be enforced on request (e.g. no smoking, no children, no pets), however we must point out that properties with less restrictions have a wider market available to them and therefore usually end up with more bookings. A general rule is that if you provide quality accommodation, holiday visitors will treat it with the respect it deserves.

LANDLORD SERVICES INFORMATION PACK

To receive a Landlord Services Information pack or request a Holiday Letting Appraisal please call the Bournecoast team on 01202 437888 or submit our enquiry form online

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