Making money from your holiday home

RENTAL MARKET: Take pets if they're English, and send Christmas cards

RENTAL MARKET:Take pets if they're English, and send Christmas cards. Sandra O'Connellon how to successfully rent your country house

TJ KERINS knows the holiday home market. The owner of six cottages in Doolin, Co Clare, he has been renting them out as a way of funding his early retirement since the 1990s.

It is, he reckons, a great lifestyle business to be in. "I love it. With holiday homes you get to engage with people but don't have too much involvement because it is generally a Saturday to Saturday arrangement."

It is however, a tough business to make money in. "We're very lucky in that we are in a very scenic area close to the Cliffs of Moher, the Burren and the Aran Islands ferry. Even still, you wouldn't want to rely on holiday home rents as your main source of income, particularly if you had just one property. To make it viable, you really need a minimum of two or three."

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The Irish Self Catering Federation is the national membership organisation for holiday homeowners.

It has 3,500 members who between them own 5,200 properties. These exclude group holiday home schemes such as those built under seaside resort tax incentive initiatives.

Its chairperson, Helen Cousins, owns three holiday properties in Co Wexford. An accountant by training, she believes that in order to make money, holiday homeowners must view their properties as a business rather than a hobby.

"The general rule is that you need to have occupancy of in excess of 30 weeks to really make it worth your while. Otherwise, with the extra expenses such as public liability insurance, water rates and advertising, you might be better off looking for a long-term tenant."

To really sell your product, borrow principles from other business sectors. "You must identify its USP (unique selling point)," says Cousins.

"Every holiday home has one, whether it's that you are on a working farm or simply that you supply the best fresh brown bread." Location, overall desirability and competition are the key factors determining how much you can charge for your property.

As of this year, inspections for Fáilte Ireland approved holiday homes are contracted to a private firm, Tourism Accommodation Management Services. Previously they were undertaken by regional tourism authorities.

Initial inspections will cost around €400, with annual renewals taking place online - and subject to sample audits - for half that.

Standards of self catering accommodation have risen enormously in Ireland in recent years because of the increased professionalism of owners, says Cousins.

"The days of posting out the key to the house you inherited and filling it with second-hand furniture are gone. Around 80 per cent of all properties are now of four-star standard and the holiday home sector is growing while others are stagnating."

The reason for this is the value for money it offers, particularly for families. However, to succeed in a crowded market - and there are an estimated 300 property owners awaiting inspection right now - property owners have to develop good marketing skills.

"The internet is vital, so spend on photography," says Cousins. "All other things being equal, people will book a house they can see. Take the time to get it professionally done and make sure it is properly lit."

Networking is an invaluable, and cheap way to promote your business too. "Make friends with your competitors. If they are full they will refer business to you." Repeat business is the key to maximising occupancy rates.

"When you get a customer, mind them," said Cousins. "Send Christmas cards, keep in touch by e-mail, set up a blog to keep them informed of what's going on in the area. It takes 10 minutes to do and costs nothing."

Don't view guests as an interruption to your weekend, she warned. "Make the most of meeting and greeting and of saying goodbye.

"It's an opportunity to book for next year.

"If you pay a local person to organise your changeovers, make sure to get someone with a personality."

The UK market is hugely valuable to the Irish holiday rental market. "What UK holiday makers want is something in its own grounds, within walking distance of a shop or pub," says Annette Collins, director of Imagine Ireland, which markets Irish properties in the UK.

"If you want to get 20 to 30 weeks occupancy from UK visitors, it is the small cottage-type property that will achieve that. Unfortunately what Ireland has been encouraging in the development of holiday homes is the exact opposite of this."

The majority of UK visitors come in couples and don't want to feel they are paying over the odds for a house that sleeps six. Be prepared therefore to be flexible in your pricing, in order to maximise occupancy.

"Be proactive about pricing and don't just have a high and low season rate," said Collins. "To extend occupancy out of school holidays you are talking about pensioners, empty-nesters and young couples. That's the market you need to be addressing."

Ireland is perceived as an expensive destination, even with the advent of low cost fares.

"Because of the baggage restrictions and charges, people now travel without towels, so if you don't supply them, you are simply not in the running," says Collins.

EQUALLY, "the UK is a very pet-oriented market so you've got to welcome them, and not just into a shed in the back but the house". UK visitors are hugely price-sensitive and will choose a property that charges an all-in fee rather than one which measures energy usage at departure.

"Most owners have a second home they want to maintain without it costing them money," says Collins.

"The standards in Ireland are fantastic but the problem is that there is just so much stock out there to compete with."

Architects Delphine and Philip Geoghegan converted an old milking parlour at their home, Ballymurrin House outside Wicklow town, into a holiday home in 2004.

"At the time it was a method of trying to save the building which was originally built as part of a 17th century Quaker settlement," says Delphine, who specialises in sustainable buildings.

Beautifully appointed, and with its own garden, the home has proven popular with US and UK visitors, as well as professional Dubliners looking for a rural break without a long drive. In high season she charges €1,100 a week for the property.

"By definition self catering holiday makers like to do their own thing and have their space, but it helps that we are on hand to suggest places to visit and good restaurants."

She believes the key is to provide a hassle-free home from home, which is why she supplies extras such as a sunken trampoline and bikes for kids.

Her average occupancy rates runs at 28 weeks annually and, with repeat business building, she expects this to grow.

"Holiday rents do cover the mortgage and thanks to the green energy solutions we have installed our overheads are low, but we don't make money from it," she said.

"Actually I don't think that you do something like this in order to make money, it is more of a lifestyle choice."