17/12/2021
Why Invest in Lodges and Caravans for holiday letting?
Setting up a holiday rental business with Prestige Country Parks has never been easier, with just a £5k deposit you can start the journey that makes your money, whether that’s savings or other types of finance such as loans or pension funds, work harder for you.
Not only can you benefit from significant investment returns, your lodge may appreciate in value in the same way that a house does, yet there is no capital gains or inheritance tax; huge incentives in their own right. You will also not incur any start-up costs often associated with traditional buy-to-let.
• Revenue income from short stay breaks with our high park occupancy levels paid monthly
• We offer a complete managed service, meaning you can relax and enjoy hassle free income for years to come.
• You control the time you let your lodge and are not restricted to a few weeks a year like many of our competitors.
• Hot tub option for each lodge – you choose
• A selection of parks to select from for your investment
• We buy direct from all of the major manufacturers so you have the widest choice of lodges available
• Existing partnerships with global partners, such as Air B&B and Hoseasons, for guest booking all online
What is included in your purchase?
When you purchase your lodge, you will receive:
Your fully furnished lodge.
A 45-year license on the park you have chosen.
Access to the booking system so that you can monitor guest numbers for your lodge(s)
Attractive buy back option if you want to move your business to another Prestige Park or upgrade the lodge(s).
Business support from our full managed service.
Park based lodges and caravans bought as a rental investment, is a boom underway.
• Income from holiday lets can be higher than returns from other property investments such as traditional bricks and mortar buy to let. We are seeing investors returning £30k on an initial investment of £140k for a new lodge in year 1.
• Getting into lodge investment for rent has a lower entry level cost in comparison to the buy to let market, Prestige has lodges and caravans starting at £65,000 - £200,000 plus. With Lodge investments there are no start-up costs, solicitor’s fees or stamp duty. All lodge investments conform to all legal requirements at completion.
• You can start your new business with a simple £5,000 deposit, all you need to add are the personal touches that will make your lodge or caravan more attractive to a guest and our 5-star service levels ensure that we have a high level of repeat business
• You can be totally hands-off, with no problem tenants or maintenance issues, any rare problems are managed for you by our on-site management who regularly inspect and maintain the lodges. Bookings, cleaning and marketing are all included in comprehensive management package.
• We strongly recommend that as part of your business offer you include a hot tub in your investment planning. Hoseasons report that occupancy can be as much as 15% higher with the inclusion of a hot tub in the offer. We take care of the hot tub as part of our all-inclusive service.
• If you operate under the “furnished holiday letting” rules, you can offset all expenses including full mortgage interest against the rental income. In all cases we suggest to all investors, especially the many new ones entering the market for the fist time, to have professional financial and legal support to ensure that they get full benefit from the positive prevailing market place.
• Running a holiday let is treated by HM Revenue & Customs (HMRC) in the same way as any trading business, so losses can be carried forward and offset against future profits.
• Furnished holiday lets may also qualify for entrepreneurs’ relief, cutting any potential capital gains tax to 10pc.
• As well as enjoying a sound investment you can also simply book out the time you want to enjoy the lodge for your breaks away and our smart investors plan their breaks in the quieter periods to mitigate lost bookings.
• Always be mindful of additional oncosts such as ground rents, utilities and rates that will be applicable on any park you select as your business partner.
• You will not need to employ staff to run your business or worry about all of the complex operating issues around health and safety for example, all taken care of with the full management service. Just sit back enjoy your lodge when you choose and put it to work for you otherwise.
THE PROCESS
Step 1
Think about whether you want to apply an investment to let only approach which will mean your lodge(s) are available for booking without interruption. Or a mixed approach, where you and your friends and family can also enjoy the benefits of short or longer breaks in your lodge(s).
Step 2
Plan your finances. Like any major purchase start with affordability and establish where you will get the funding needed to make your initial investment. Whilst you only need the deposit to secure your lodge and pitch of £5k you will need to complete within 30 days to get your business up and running with the total cost before the keys are yours.
Step 3
Visit your chosen Prestige Park. The park and its location will determine the quality and type of guests that will be attracted. The style and facilities are only part of the equation spend as much time considering the geographical area and attractions locally, say within 40-minute drive, as this will be a key driver when someone considers booking.
Step 4
Select your lodge, with a wide selection available from all the major manufacturers available, pay your deposit to secure your lodge and pitch. The local park team will then ensure that the lodge is prepared ready for handover. You then complete the finances and a handover date is set. We suggest that you stay for the first weekend, we can advise on the personal touches that will help your lodge achieve strong occupancy from launch.
Step 5
The marketing team will then dress the lodge and take the profile pictures inside and out that will be used online. Your Lodge is then promoted with Prestige and also our booking partners which you can track from your phone or laptop. Sit back and enjoy the income generated paid directly to you quarterly.
See more at www.prestigecountryparks.co.uk
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Or call to make an appointment on 01759 306686
