Island Life Magazine Ltd December 2006/January 2007 | Page 20

PROPERTY The professionals behind the holiday lettings process Holiday property ownership on the Island is booming as more and more people realise the advantages of investing in a second home that they can let out to visitors as well as enjoy for holidays of their own. But for those who have never ventured into this arena before, the process of locating, purchasing, upgrading and marketing a suitable property can be complicated and time-consuming. That’s where Island lettings company Holidays2Remember scores highly with new landlords - because it works closely with a team of specialist service providers whose expertise is always on hand to smooth the process. These include a property management company, an estate agent, financial advisor, architect and accountant – and all of them are tried and tested because they were the very people Holidays2Remember founders Josie and Tacis Gavoyannis called upon when they bought their own first holiday property on the Island. In fact the couple decided to set up their holiday lettings business after learning lessons from their own experience and building up this valuable contacts network. So who’s on the Holidays2Remember team? The property manager Amanda Bolwell had previously worked at an Island estate agency before setting up her company, Island Property Management, with just one house. Over the past three years, her client portfolio has grown to 25 properties – ranging from two-bedroom cottages to seven-bedroom country homes. Drawing on its own local network of property maintenance contacts, Amanda’s company offers a complete package including everything from a changeover service to gardening, cleaning, general maintenance and emergency call-out. 20 Because many of the property owners live on the mainland, having a dedicated service such as this on the Island takes the strain of managing their holiday let from a distance. “We have a whole team of trades people we can trust and with whom we have built up good working relationships,” says Amanda. Island Property Management is now working closely with Holidays2Remember and manages most of the properties on its books. The businesses have a similar ethos in that they believe in constantly upgrading holiday properties to offer visitors the best quality accommodation. In the closed season, Island Property Management oversees renovation projects, such as putting in new kitchens and bathrooms. “We actively encourage our owners to continually upgrade their properties because quality is what the market is now looking for,” says Amanda. The estate agent Charles Spence, a partner at the Wootton Bridge estate agency Christopher Scott, says he is seeing a steady growth in demand for good quality country and coastal properties as holiday letting propositions. He sold Tacis and Josie Gavoyannis their first Island property, Mill House at Brighstone, which, he says, is typical of the type of “interesting coastal property” that second-homers tend to look for. “We deal on a very personal level and like to get to know our clients’ needs and preferences so that we can hopefully locate the ideal property for them,” he says. Charles adds that most buyers of property for holiday letting are looking primarily for unspoilt locations with good views and good access to walks and beaches – although there are also some niche markets in busier areas such as Cowes with its sailing attractions. “Generally speaking the holiday lettings market has become much more sophisticated in recent years, with a growing demand for higher quality property and holidays all the year round”. The accountant Letting propert y to holidaymakers has a big advantage over general residential letting, according to Michael Finn of West Sussex-based accountancy firm Finn & Co. – and it boils down to tax. “Holiday letting enjoys a unique tax treatment and is in fact quite beneficially treated from a tax point of view,” says Mr Finn. Like the other specialists employed by Holidays2Remember, Finn & Co has witnessed a growing trend for investment in holiday property, and he puts it down to two main reasons: “The first is that we live in an age of leisure which has lead to a growth in demand for higher quality accommodation for holidays and short breaks” he says, “And the second is that, unlike normal residential mortgages, the interest paid on a mortgaged holiday property is allowable against tax”. This, he explains, is because holiday letting is treated for taxation purposes as a trade and not an investment. He says it’s a always a good idea for anybody considering a foray into the holiday lettings business to speak to an accountant quite early in Island Life - www.isleofwight.net