Holiday lets have come under increasing regulatory scrutiny in recent years, including the need to apply for planning permission to turn a property into a holiday let. Therefore, brokers may need to help their clients navigate the regulatory implications of their property to a much greater extent in this sector than other.
Often, these regulations mean that investors will need to renovate or upgrade their property to comply with, for example, fire safety rules.
Coupled with the fact that the decor and facilities must be of a suitably high quality to attract holidaymakers, many holiday let investors will require brokers who can secure bridging or refurbishment loans to help them make the necessary changes.
In addition, owing to the nature of letting on a short-term basis to holidaymakers, these investors are much more exposed to seasonal demand fluctuations than other investors. This means that their properties might often sit empty and fail to generate any rental income, which obviously can create challenges when it comes to meeting mortgage or loan repayments.
Therefore, flexibility is a key quality for brokers working in the holiday let space.
This means that brokers need to have a good idea of lenders that can provide products that allow for things like rolled-up or deferred interest. In turn, this adaptability and choice could give their holiday let clients the breathing space they need to manage any fluctuations in demand or income with confidence.
Commercial landlords
In the commercial property sector, an investor’s needs will really depend on the nature of their investment, which can range from large office blocks to small retail units.
However, there are a few things that any landlord in the commercial sector will often need support with when working with a broker. In this sector, perhaps more than any other, the economic health of a specific industry or location will have a particular importance.
Therefore, brokers must ensure that they have a strong understanding of the market trends, vacancy rates and local economic conditions that may impact their client’s investment.
Moreover, tenant quality and lease terms are other vital components of a successful commercial property investment.
As such, it is vital that brokers also have expertise in setting out and managing the rights and responsibilities that their clients have as commercial landlords, including the cost and length of a lease, as well as implementing a timescale for review to ensure that their client maintains a profit should market conditions change.
