Buying your own caravan is a great way to have a place to stay in your favourite resort guaranteed. Whenever you fancy getting away for a couple of days of sea air all you have to do is hop in you car, no booking required. But for many people the prospect of extra income from subletting is another great attraction of holiday home ownership.
But, it can also be a right palaver! There is plenty to sort out when subletting. And, it’s an ongoing process, advertising, handling money, managing the changeover and more. But, if you buy a caravan on one of Park Holidays’ parks you can take advantage of their full letting service.
First up is advertising. Park Holidays take care of making sure that people get to hear about your caravan. They advertise your holiday home with external agencies such as Hoseasons. They also have their own marketing database of clients who they bombard with emails, flyers, letters, and brochures (they just texted me whilst writing this to let me know they’re adding more caravans to their Blue X sale!).
The booking fees are handled by Park, who collect them, and provide a statement at the end of every season detailing all holiday lets, and a breakdown of income for the season. You can also check your earnings via mobile or your computer as you will have an online account set up.
Changeovers are also handled. This includes a full clean after each sublet, plus laundry delivery and pick up if your let includes linen for visitors.
Holidaymakers staying at your caravan also have access to reception as part of the service should anything need ironing out, which means you don’t get people ringing you up on a Friday evening asking how to switch the oven on in your caravan. The keys are also looked after by reception.
All of the above can be managed without using the service. Plenty of people have been privately subletting their caravans before this service came along, and since the advent of eBay it has become even easier. But you have to ask yourself is it worth the hassle of arranging a local to sort the changeovers, or even do it yourself, plus handing the money and ensuring that you get paid?
Obviously it all revolves around the cost of the service, which is a 19% commission (including VAT). On top of that, there is a £15 charge for linen per stay if linen is included in the holiday price. Excluding linen from the holiday price may put some people off, so that’s another thing to think about.
Park Holidays have some great parks along the South Coast of England, and at the time of writing their Blue Cross sale is still on, so you can grab up to 30% off. Obviously purchasing a caravan is a big commitment, requiring both money and time. Subletting will bring in income, however you will need to get your calculator out to forecast potential earnings versus initial outlay (or monthly instalments if purchasing via a finance package).
It is good to hear that the option of a service is available, but the big message here is ‘do you homework’! You will be very unlikely to actually make a profit on subletting, and don’t forget that caravan plots are leasehold, not freehold, and you will need to check the length of the tenure. Having said that, subletting may enable you to pay for your breaks, and, you should be able to opt out of the scheme if you wish (check the small print though as terms and conditions are always changing).
Decisions, decisions! If you do have a bit of a nest egg, and a favourite resort, it’s time to get that thinking cap on. If you think you may be interested you can see the subletting form and terms and conditions here.
By: Gareth Whieldon
