Owners...

Q) As an investor, I want to maximise my return. How can Quay help?

A) Rental returns from traditional long-term lettings are low, relative to the capital value of  properties in Poole. Peak-rate holiday rents are up to three times higher than rents from  Assured Shorthold Tenancies over the same period.

Q) That’s great, but summer’s the easy bit! What about the medium and low seasons? Won’t my property be sat empty?

A) Well, no. This is where Quay Holidays’ marketing, its extensive data base of satisfied customers, and its contacts with local businesses come to the fore. We work hard to achieve longer-term lettings (less than five months) in the low season – for example, to clients on work contracts in the area, or to families between house moves.

Of course, we cannot guarantee your property will be fully occupied all year round, but we do aim to achieve 70% occupancy – which becomes easier over time as more satisfied customers re-book in subsequent years.

Q) But if I decide to give holiday letting a try, won’t I be faced with additional costs?

A) Well yes, there are additional costs. You would be liable for the cost of electricity and gas, television licence, insurance, standing charges for telephone and broadband, water rates and council tax. You may however be eligible to pay business rates, which generally offers a significant reduction, and if the property is your sole ‘business’, you may receive a further 50% small business rate relief. You will also pay service charge where applicable and the cost of repairs – but most long-term lettings still make these costs a landlord’s liability anyway.

Quay Holidays make a one-off Registration Fee to cover our outlay on initial set-up costs including professional photography stills, Visitor Guides, guest books, key fobs etc.  We charge a management fee and a booking fee for each letting, but the costs of marketing and advertising are borne by us (360º video promotions excepted). We charge you for cleaning and laundering, and the provision of ‘welcome packs’ to guests – but only at cost. We earn our income from the bookings and management.

Q) Okay, but what about the cleaning and maintenance? Won’t the holiday guests mess my property up?

A) At Quay Holidays, we recognise that cleaning and presentation are vital to promote guests’ satisfaction, and to protect our clients’ investment. That is why we only use our own trained cleaning staff, overseen by our own supervisors. They know each property intimately and act as our eyes and ears. Occasionally accidents do happen but we take meaningful damage deposits, which are rarely called upon in practice. In our experience, well-maintained and thoughtfully-equipped accommodation is treated with respect.

Q) I’m interested in letting out my holiday home, but does that mean I won’t get to use it myself?

A) Not at all! Provided you give us reasonable prior notice, we can block-out owners’ bookings, so that you and your family can enjoy the property as much as your guests. That way, you have the benefit of the property when you are there – and the income when you are not!

Q) But if I decide to give holiday letting a try, won’t I spend a fortune kitting out the property, and how will I know what is needed?

A) At Quay Holidays, we prepare an inventory proposal – reviewing what you may already have, and advising you what else you require. All of our properties are put forward for Tourist Board assessment, and we can advise you what is needed to achieve the necessary star rating.  For a fee, we can even agree a budget with you and source the items you need! Our experience means that we know how to equip clients’ properties for maximum effect with minimum outlay. This does not mean we advocate buying the cheapest of everything – our guests rightfully expect good quality furnishings. After all, that is what they have paid for, and quality items look good for longer.

Q) Okay, I’m interested, and I’m thinking of buying a property, but what makes a good holiday letting proposition?

A) From the moment you decide to invest in a holiday let, you should be talking to us. We are happy to advise on a property’s suitability, its likely Tourist Board rating, the income you could expect to achieve, how to equip it to its full potential, and a whole host of issues which will help you make the right choice.

Once your property is signed-up with us we prepare a professionally photographed colour brochure, which is extensively marketed through our comprehensive website, through the Tourist Board’s website, through national newspaper advertising, and specialist publications.

From our shop in Poole Old Town, our marketing team work tirelessly, 6 days a week, fielding telephone calls and e-mail enquiries, and welcoming customers visiting our High Street shop. Out of normal office hours, we offer a 7-day-a-week on-call service until 10pm each night – enabling enquiries and bookings to be processed immediately via our remote-access computer booking system.

Once the booking is made, we collect deposits and balancing payments, make access arrangements, provide cots, Z-beds, and high chairs ( free of charge – Quay Holidays buy and supply), clean, launder, and generally do everything reasonably possible to make the guests’ stay as enjoyable as possible. After all, happy holidaymakers = repeat bookings and recommendations = more business!

Q) So when would I receive the income?

A) We send out monthly statements to each client, setting out the income received and the expenditure incurred, and we transfer the net proceeds directly to your bank account.

Q) But what about the tax?

A) Aah now, this is the interesting bit (honest)!  We are not experts in this field, but have been advised that shoud you have your property available to let for 140 days or more per annum (and it is actually let for at least half of this period) and for no more than five months to any one person then you are able to treat your property as a 'trading business'.

As such, expenses may be offset against income when calculating income tax payable.  Also for inheritance tax purposes the property is deemed to be a business asset and can be passed-on tax free.  It is our understanding that, (following changes to Capital Gains Tax set out in the March 2008 budget), a sale of a letting property will attract Capital Gains Tax at the unified rate of 18%.  However, if your property has been operated primarily for holiday lettings you could be eligible to use part of your Life-time Entrepreneurs' Relief, in which case you will pay just 10% on any capital gain.  We are not authorised to offer advice in this matter and would suggest therefore that you make contact with an accountant to check your individual tax position.

Q) Okay, I think I want to give it a go. What happens next?

Simple – just call us on 01202 683444! We’re always happy to talk through your ideas and queries, and we can make an appointment to meet, either at our offices or to look over the property you are thinking of purchasing. There is no obligation, and we look forward to your call.