Apartment building in the centre of Liverpool

How to Buy a Holiday Let in Liverpool: A Comprehensive Guide for Prospective Owners

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Liverpool has cemented itself as one of the UK’s top destinations for tourism and culture. Drawn by its Beatles heritage, football fame, vibrant nightlife and striking waterfront setting, an influx of short stay visitors has fuelled immense appetite for holiday accommodation. For investors, the city’s high occupancy presents a lucrative opportunity to capitalise on through purchasing Liverpool holiday let properties. But where do you start when buying a holiday let?

Identifying the Best Areas to Buy

Careful location scouting is crucial when searching Liverpool’s property market. Target districts demonstrating strong investment fundamentals:
  • High occupancies – Popular with tourists and short stay guests, signalling profitable demand
  • Capital growth – Neighbourhoods undergoing gentrification and value appreciation
  • Transport and amenities – Close proximity to attractions, entertainment precincts and transport links
  • Safety and appeal – Areas perceived as secure and desirable with wide tenant appeal
Liverpool City Centre and surrounds tend to tick these boxes for holiday let ROI.

Choosing the Right Property Type

Along with area, the specific property style determines income potential. Liverpool holiday let owners should consider:

Apartments

Modern complexes with shared amenities like gyms in central locations. Look for modern builds with hotel-esque finishes renting to corporate travellers.

Serviced apartments

Self-contained units with hotel-like finishes and concierge assistance. On-site staff handle guest queries and provide amenities appealing to visitors wanting a ‘home away from home’ experience.

Heritage properties

Georgian terraces or converted warehouses provide character. Leverage unique architecture and features to attract guests wanting to immerse in Liverpool’s history.

Waterfront homes

Striking Mersey River views attract premium rental rates. Floor-to-ceiling glass captures the ambiance that appeals to tourists.

Shared HMOs

Large 5+ bedroom homes converted for per room rentals. Maximise income potential via multiple room rents from separate tenants in central districts close to universities and hospitals. Evaluate options, balancing personal taste with profit goals.   Financing the Purchase Funding options for securing Liverpool holiday lets include:
  • Savings – Avoid interest payments by buying outright without financing
  • Mortgages – Specialist products for holiday lets requiring 25% to 50% down payments
  • Bridging loans – Useful for winning properties at auction then arranging traditional financing
  • Joint ventures – Pool funds with other investors to access larger opportunities
With Liverpool prices still undervalued, mortgages allow investors to enter the market and gain leverage. Review lender eligibility criteria like projected occupancy rates and cash flow coverage ratios.

Conducting Due Diligence Before Buying

Before completing purchases, prospective Liverpool holiday home investors must validate key assumptions across:

Achievable rental rates 

Conduct local market comparables across platforms like Airbnb and Booking.com for properties with similar amenities based on size, room number and location to estimate nightly and monthly income potential across high/low seasons.

Performance of nearby listings

Review occupancy rates, average length of stays, and total review volumes as these indicate  demand for existing listings in the neighbourhood. 

Local planning rules

Research if special permits, licences or zoning laws surrounding short term letting apply to the property address or district through Liverpool Council.

Renovation and furnishing costs

Partner with local architects, interior designers and landscape architects to provide ballpark quotes on upgrades to bring the property up to hospitality standards.

Management overheads

Understand typical costs for daily, weekly or monthly professional cleaning services, laundry services and local tradespeople call-out rates for when maintenance repairs are required. Crunching numbers determines profitability and helps avoid overpaying. Inspecting properties also assesses repairs or upgrade requirements.

Preparing for Guests Prior To Listing

Before accepting bookings, prepare Liverpool holiday rentals to hospitality standards:
  • Facilities – Fast WiFi, smart TVs, keyless entry, luxury bathrooms, fully equipped kitchens
  • Furnishings – Designer furniture, premium beds, sufficient linens, storage solutions
  • Cleaning – Extensive multi-room sterilisation and floor/surface scrubbing
  • Exterior – Appeal enhancements like façade painting, landscaping, outdoor areas
  • Compliance – Arrange safety inspection certificates and Council approvals
Presenting a pristine, comfortable abode minimises guest issues and risks. 

Working with Specialist Liverpool Holiday Letting Agents

Self-managing all guest communications, cleaning, restocking and maintenance can devour time, especially remotely. Instead, investors should engage in holiday let management Liverpool like 53 Degrees Property. Our team implements tailored pricing strategies, listings optimisation and Airbnb management to drive bookings and income for clients. To explore outsourcing to experts as a headache-free path to rental success, contact 53 Degrees today! 

Get your FREE Holiday Let Valuation below!

Please fill out the form below and we’ll get back to you within 24 hours by call or email with an estimate of what your property could make you as an Holiday Let managed by 53 Degrees Property.

You have nothing to lose and everything to gain!

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