Expert advice from Rupert Springfield of Gite Guru
More and more people are offering holiday accommodation – Airbnb is reporting record numbers of new properties being added.
If you’re joining this movement, then be clear about why you’re doing this. Is it an investment and/or a new revenue stream, or are you doing this to change your lifestyle and daily life?
There are several important steps to take when you’re setting up. Get an accountant is the first! Find someone who can advise you about your business plan, fiscal requirements, what kind of business you should register, and if your plans will be affected by inheritance laws and capital gains tax when you sell. All of this information will ground your plans and ensure there are no painful surprises along the way.
Make sure you understand what visa requirements or restrictions there are for you. Post-Brexit, Brits need to be careful about the amount of time they spend in Europe, where they are resident for tax purposes and how long they can spend in Europe.
Think about how involved you’re going to be. If you need to hire people to clean, do the gardening and pool, marketing, communication with guests, check-in, then a huge chunk of your revenue will be swallowed up by these costs If you can run the holiday home yourself, then your costs will go down and you can ensure that your standards and level of service are met.
So many people have a budget which they blow on buying the property. Make sure that you keep some of the budget back for renovations – and really, really importantly – for furnishings. Create the total package!
Rupert Springfield runs Gîte Guru with his husband Franck, advising people on starting up gîtes in France, or fine-tuning existing ones. They run and own Le Mas & Le Mazet, award-winning holiday homes in the Dordogne France. Do follow them or contact them if you’d like some help!