Top 5 Tips for Renovating Your Second Holiday Home

It’s a pretty special privilege to have a holiday home, whether you’re using it as a secondary source of income or as your perfect little hideaway. Either way, however, it’s an investment, and all investments need to be maintained. To that end, it’s perfectly natural to want to renovate your holiday home every few years to keep up with market trends and keep your pride and joy looking shiny and new.

It’s all about ROI, though, and you don’t want to be spending money on areas with no real financial benefit. To help you avoid doing just that, here are the top five tips to consider when embarking on a renovation project for your second holiday home.

1. Establish a Clear Renovation Budget

Understanding how much you’re willing to spend—and ensuring that the project remains financially viable—is the key to any smooth renovation. Start by researching average renovation costs in the UK for the size of your property and the local area and gather quotes from multiple contractors to get a realistic sense of how much each aspect of the renovation might cost. It’s also wise to factor in a contingency fund for any unexpected expenses that may arise. Financial planning at this stage will prevent costly surprises later. For those with larger projects, secured loans or other financial products can help cover costs without eating into savings. Secured loans are often used by homeowners who have built up equity in their property, as these loans typically offer lower interest rates than unsecured loans.

2. Prioritise High-Impact Areas

When renovating a second home, it’s essential to focus on the areas that will provide the most significant return on investment, especially if you plan to rent out the property. High-impact areas, such as kitchens, bathrooms, and outdoor spaces, tend to attract renters and increase the property’s overall appeal. Modernising the kitchen and bathroom can significantly boost the property’s value and appeal. Upgraded fixtures, new appliances, and a contemporary design in these spaces will make the home more attractive to potential renters, leading to higher rental income. Outdoor areas, such as patios or gardens, are also essential for holiday homes, offering relaxation and entertainment spaces that are highly valued by guests.

3. Plan for Energy Efficiency

When renovating your holiday home, planning for energy efficiency should be a top priority. Key upgrades include adding insulation, installing double-glazed windows, and using energy-efficient heating systems such as heat pumps or smart thermostats. These improvements not only lower your energy bills but also make the home more appealing to eco-conscious renters. In the UK, there are also government incentives available for making energy-efficient home improvements, which can further reduce your renovation costs. Taking advantage of these schemes can make the property greener and save you money over time.

4. Explore Financing Options

Renovating a second holiday home can be a substantial financial commitment. Therefore, it’s important to explore various financing options to fund the project efficiently. Depending on your financial situation, options like secured loans, remortgage, or releasing equity in the property can be excellent ways to finance the renovation. Secured loans are ideal for homeowners who have built up equity in their property, allowing them to borrow against their home to fund the renovation. This option typically offers lower interest rates and longer repayment terms compared to unsecured loans. Remortgaging is another option, which involves refinancing your existing mortgage to free up cash for the renovation. If you have existing debts, you could also consider debt consolidation loans, which allow you to manage your debts more effectively while freeing up cash for your renovation project.

5. Get It Rental-Ready

If your second holiday home is intended for rentals, it’s essential to design the renovation with potential renters in mind. Focus on features that make the property more appealing to holidaymakers, such as modern amenities, comfortable interiors, and inviting outdoor spaces. Upgrading appliances, installing smart home technology and ensuring the home is equipped with high-speed internet are all attractive features for renters. Outdoor spaces are significant for holiday homes, so consider adding features like a deck, BBQ area, or even a hot tub to create an appealing outdoor environment. If you’re planning to rent out your holiday home on Airbnb, you’ll undoubtedly be able to charge a fair amount extra if it boasts a hot tub!