How does caravan rental work and what returns can I expect?

Question

With house prices so high, and such large deposits needed, I'm just looking at the alternative options. So I'm just looking at the option of renting a caravan out in a holiday camp abroad.

1) Can I buy a second-hand caravan and rent it out in a holiday site, i.e. Haven?
2) What are the laws?
3) What are the costs like? Rental Income? Ground Rent?
4) What would it cost to have someone look after it for me, and can I be sure I can trust them to look after it for me?
5) What sort of occupancy rates can I expect?
6) Anywhere I can find out more? (anything else I may have missed)

Answer 1

I suggest that you are very careful when exploring the idea of buying a caravan to rent out and make commercial return on it.
Because a caravan is a depreciating asset you have to include the depreciation in your calculations when looking at a return on your investment. Good caravan parks also have higher site fees which of course mean that you need to charge higher rents again (although a nicer site with good facilities should command a higher rental fee for you anyway). Many parks will also have rules about the age and standard of caravan that you are allowed to rent out.

Of course if you have a caravan you can also use it for your own holidays which will have some value too.

If you have soem money that you are loking to invest you will be better off putting it into a high interest account / ISA than buying a caravan to rent out.

Answer 2

Havan are Agents.

i.e. they will answer all of the above questions.

Why not contact them first ??

NB. Are you American ?? I ask because you don't seem to realise that 'abroad' consists of many Foreign Countries and each has it's own Laws.

Within a Foreign Country you will find many 'regions' (just like in UK where we have Wales, Southern England, Midlands etc) - the prospects for rental income / occupancy rates etc. will differ very much from one region to another.

Answer 3

maximum actually accept as true with you, darling. you may not do something for somebody in hopes of having something in return. Do it for the reason which you elect to work out them smile or help them out.