How should I choose a property to rent as a holiday home?

3 Mins read

If you want to consider renting out your property while you’re away, Make sure you choose a property that is a popular tourist attraction. The good news is that you can often buy a larger property for a relatively lower price tag in a less popular location that is on the way to becoming one of the major tourist destinations in a few years from now.

When you buy a property for holiday use, consider a property that caters to a wide population. You can investigate what profile of travellers visits a particular location. Even a 2-bedroom property will suit your needs if it is a honeymoon destination. When visiting a golf destination, golfers are ideally accompanied by their buddies.

Here, a property that can comfortably accommodate a group of people is a better choice. Consider the type of travellers you would like to rent this property to. A spacious villa is better than a studio property if you want to appeal to families.

Consider the property’s long-term value as well. You should invest in properties with stunning views of mountains, luxurious balconies, and direct sea views. These will increase your marketing rental value and make a good investment when the time comes to sell the property. Amazing views or being close to the beach may come at a slight premium, but it will also increase your property’s appeal to tourists. So, if you want to get back more in the long run, you might want to pay a little more.

How to choose the right location for your holiday home?

For any property purchase, choosing the right location is crucial. Whether you are buying a holiday home to spend vacations with your family or renting it out to earn income in the future, location becomes even more important.

Before deciding on the location of your second home, consider these factors:

Buying something for yourself:

Ideally, the location should offer you some rest and relaxation, away from the hustle and bustle of the city. So it wouldn’t make much sense to buy a holiday home within city limits. You can then decide if you prefer the beach or the mountains and look for properties there accordingly. Suppose you plan to purchase a holiday home solely for rental purposes. Make sure the location is one where you would also enjoy yourself. In this way, you benefit too. If you are a beach person, buying in the mountains will mean you get no value from your own property. The first priority is buying for yourself and then buying to earn from renting out. 

Buying to Rent:

If you are planning on renting out a holiday home, then the location is crucial for your occupancy rate. It is highly likely that people will stay at your vacation home all year if it is a couple of hours drive from a major city. There will be more interest in your home if it is close to a tourist destination. A Cottage surrounded by mountains but with no connectivity to major cities. It may do well during long weekends and during peak times, but it will not fill up on weekends during the offseason.

The third step is to conduct research.

The best way to figure out the market for property and rentals is to conduct your own research. Forums on the Internet are an excellent way to find out more about buying and living in the locations you have short-listed.

Developments in the future:

Explore the locations you have shortlisted for a second home. Try to find out what the local authorities or major real estate developers are doing regarding future development when you meet with property agents.

 Seasons for tourism:

Discover the peak and off-seasons of the location. You will either need to choose a place with good weather all year round or one with dual-season potentials, such as a hill station. If you are purchasing a property with a definite season in mind, it is good to visit the location during its off-season to see if anything attracts visitors.


Choosing a location with good connectivity – an airport, railway station, and good roads – makes sense.


Since it is a self-catering holiday home, people will want to eat out, so having a pub or restaurant nearby will make the property more appealing. Likewise, buying milk, bread and biscuits from a local shop, however small, will avoid an hour-long round trip.

Investments in a real estate offer you the best options for your money and provide a fascinating world of opportunities. Real estate investments offer a guaranteed return, which is why they are deliberate ways to make slush money.

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