All owners who let their properties must ensure that they have in place comprehensive insurance which specifically covers holiday letting and includes appropriate Public Liability Insurance (we recommend minimum cover of £2,000,000) as well as accidental damage. We work closely with industry specialists Boshers who are more than happy to offer advice and quotes on appropriate insurance. and so feel free to call them for advice.
Health, Safety & Fire Risk Assessments
A holiday property must have a Fire Risk Assessment (FRA) carried out by the owner/landlord prior to letting. Carrying out a FRA helps you assess the potential risks of fire in your holiday home for guests visiting your property and what measures you need to put in place to keep them as safe as possible.
See the latest full guidance on current Safety and Fire Risk Assessment requirements.
All properties should have central heating particularly if letting outside July and August. If central heating is not available then modern electric heaters are an acceptable alternative. Properties without either form of heating will now not meet minimum letting requirements. Properties with gas central heating should have their boilers serviced annually and must have a Landlords Gas Certificate on display at the property.
The modern day holiday guest expects an ‘all-in’ deal with no hidden extras and we therefore offer properties for rental with electricity and heating charges included in the advertised cost. More recently more of our owners now leave starter packs of logs and kindling for guests where an open fire or wood burner is available for guests to use.
Tax on Income
Owners should be aware there are tax implications for revenues accrued from holiday letting. We would strongly recommend you secure professional advice before proceeding with letting your property. Owners who are non-resident for UK tax purposes must provide Wight Locations with a certified copy of a tax exemption certificate issued by HMRC in order for us to represent them.
Any property that is used for commercial purposes may need to be rated for business rates purposes, depending on the exact nature of its usage. Holiday cottages in England are assessed for business rates if they are available for letting for short periods totaling 140 days or more per financial year. If the property was available for letting throughout the year but the owner makes a conscious decision to only accept bookings for a total of 139 days (or less), then the property will not be subject to a rating assessment but will be allocated a council tax band.
For more detailed guidance contact the VOA or take a look at their guide for holiday cottage owners.
If you need any help with these or any other letting issues please take advantage of our free advisory service and call us on 01983 617322 to discuss them further.