How to choose a holiday letting agent for your property

There’s lots to think about when renting out a holiday home, which is why many owners choose to use a holiday letting agent to manage their property.

Read on to find out the pros and cons of using a holiday let agent, plus how to choose one and how much they cost.

What is a holiday letting agent?

Similar to a traditional agent, a holiday letting agent can help a landlord to find tenants and manage their property.

Holiday lettings is a specialist market. The best agents will have a good knowledge of:

how to handle seasonal bookings
where to advertise holiday homes
local market rental rates
managing guests and changeovers

There’s usually more work involved in renting out a holiday home. Guests turnover frequently, which means more administration, while things like bedding and towels need changing.

Working with a holiday let agent that handles those situations can mean less hassle. It can also make your holiday let business more professional.

Also, landlords who live far away from their property might find it easier have a letting agent who welcomes guests and deals with emergencies.

What does a holiday let agent do?

A holiday letting agent’s first role is to advertise your property. They’ll help you set an asking price, create a listing, and then promote the property to prospective guests.

They can also help with the booking process, managing the property’s schedule, check-in/check-out, and emergencies.

If you employ a letting agent to fully manage your property, they’ll also be able to help with:

property maintenance and upkeep
compliance such as gas safety checks
cleaning and laundry
guest support and welcome packs

Do you need a holiday let agent?

If you live close to your property and have lots of spare time, you might not need to use a letting agent.

Taking this hands-on approach can be more financially rewarding as you’ll keep more of your rental income. However, it’s sometimes more stressful and labour-intensive.

If you’re new to the holiday home rental market, or own several properties, it’s often beneficial to work with a letting agent.

Most agents offer two types of management (see below), although you might be able to agree a bespoke package.

Owner-managed vs agency-managed

If you decide you want to employ a letting agent, you’ll need to decide on the level of management you need.

An owner-managed package means the agent will help you find guests and manage bookings.

If you opt for an agency-managed package they’ll handle every aspect of your property from cleaning between guests to responding to enquiries during stays.

An agency-managed package will cost more, but you can be hands-off.

An owner-managed package is better suited to landlords who want to meet their guests and have more control but still need help advertising the property.

Vivvi Smak/stock.adobe.com

Holiday letting agent fees – how much do they cost?

Holiday letting agent fees for landlords vary depending on the level of management you choose.

For full management, you could pay up to 50 per cent commission on your rental income. If you only use an agent to advertise your property and manage bookings, the commission fee could be closer to 20 per cent.

The Tenant Fees Act means agents can’t charge guests, but they can charge landlords extra for things like:

key collection
cancellations
registrations
inspections

Read our guide to letting agent fees for more information on how they work.

The pros and cons of using a holiday letting agent

Employing a letting agent to manage your holiday home has both advantages and disadvantages:

Benefits of holiday letting agents

compliance and administration support – a professional agency can help keep your property up to date with legislation, as well as manage finances and bookings
proximity to the property – if you don’t live nearby, having a local letting agent on hand can give you peace of mind that someone can help quickly if there’s an emergency
full property management – if you want to take a hands-off approach to being a holiday let landlord, a professional agency can manage every aspect of your property from maintenance to changeovers
marketing expertise and local knowledge – a specialist holiday letting agency can advertise your property to the right audience and use their knowledge of the market to set the right price

Downsides of holiday letting agents

lower income – the cost of a holiday letting agent means your rental income will be lower, but you’ll be paying to reduce your workload and hassle
reduced property access – there may be times when it’s harder for you to visit the property and if you want to stay there regularly, you’ll need to come to an agreement with your agent. Make sure you read your contract thoroughly before signing anything
lack of control – working with an agent means you could have less of a say about how it’s advertised, the guests that book to stay, and how they’re greeted on arrival
maximum lettings vs minimum rates – some agents will prioritise booking the property over getting the highest rate, which could affect your yield and increase wear and tear

How to choose a holiday letting agent

If you decide to work with an agent, choosing the right one is crucial. You’ll be entering into a business relationship, so it’s important to work with someone you trust and communicate well with.

You’ll need to do your research. Here are some of the steps you can take:

check their online reviews
speak to other landlords for recommendations
meet the agent for a market appraisal

When searching for an agent, it’s worth seeing how they market other landlords’ properties. This will give you an idea of how yours could be advertised.

Remember, the holiday lettings market is different to traditional lettings so make sure your agent is a specialist and knows the local market.

Before instructing your agent, make sure to check the contract and get legal advice if you’re unsure of anything.

Do you have any unanswered questions about holiday let mortgages? Let us know in the comments below.

Useful guides for buy-to-let landlords

Get set with tailored landlord cover

Over 200,000 UK landlord policies, a 9/10 customer rating and claims handled by an award-winning team. Looking to switch or start a new policy? Run a quick landlord insurance quote today.

Start your quote

Seventyfour/stock.adobe.com

Do I need a holiday let agent? A guide for holiday home owners