Sell your holiday home or keep renting it? How to weigh it up

The rental season is over and things have gone quiet. For many owners, this is when a question that ran in the background all year comes to the surface. Do I keep renting this property, or is it time to sell?

There is no single right answer. There is, however, a calm way to approach the question, so that neither a poor season nor a good offer makes the decision for you. In this article you read which questions to ask, which figures to gather and which middle routes exist.

Start with the reason for the doubt

Doubt usually has a cause. Name it, and the direction often becomes clear quickly.

Sometimes it is money: the income disappoints, or costs have gone up. Sometimes it is time: the property demands more attention than you can give. Sometimes it is a stage of life: children who no longer use the home, a move, retirement or an inheritance. And sometimes it is simply fatigue after a busy summer.

These are four different problems. Only the first, and part of the second, is solved by a sale. The rest can often be solved differently, for example by handing over the management or organising the rental in another way.

Draw up an honest annual account

Take your last full year and put everything on paper. Not what you hoped for, but what actually happened.

First add up the income: what guests paid, after the platforms' fees. Then add all the costs: energy, cleaning, linen, maintenance, repairs, insurance, property tax, any management costs and replacing small items. Count the winter vacancy too.

Do not forget your own time. If you manage the property yourself, every booking, every message and every key handover takes time. Put an hourly rate against it, even a modest one. Then you can see whether the property produces an income or is mostly a second job.

Compare it with what a sale brings

A sale produces capital. That capital can work elsewhere: repay a loan, be invested, buy another property or simply give you security. So the honest comparison is not your annual income against zero, but your annual income against what the released money could do.

Ask one or two estate agents for a valuation. A free estimate commits you to nothing and gives you a realistic figure instead of a guess. Also look at what your property still needs before it rents well or sells well, such as renovation or energy works. That applies to both routes.

Include the costs and taxes of a sale as well. They depend on your situation, on how long you have owned the property and on how it is set up legally. A blog article cannot give an estimate. Ask your notary and your accountant.

Look at the property's future

A calculation over one year is a snapshot. Also ask yourself what the next five to ten years will bring.

Are major works coming up, such as the roof, windows, heating or insulation? Then look at the renovation obligation that can apply on a purchase or transfer. We have already written about it in our article on the renovation obligation. Do you expect to use the property more yourself, for example after retiring? That counts as much as a return.

A home where you enjoy staying has a value that does not fit in a table. That is a legitimate reason to keep it, as long as you know what the choice costs.

The middle routes

Selling or renting on is rarely a choice between black and white. A few middle routes deserve a place in your thinking.

Outsource the management. If time is the biggest source of frustration, a manager solves that without you letting go of the property. How to weigh that choice is explained in our comparison of self-managing and using a manager.

Rent differently. Another approach may suit your life better. Think of fewer bookable weeks, a longer minimum stay or part of the year reserved for your own use. Long-term letting can also be a calmer alternative.

One more year with a plan. Give the property one more season, but with a clear test. What income and how much time do you find acceptable? If the property does not deliver, you sell without regret.

A questionnaire for yourself

Answer these questions in writing, preferably with your partner or co-owner:

1. What did the property earn net last year, after all costs?
2. How many hours a month do you spend on it, and how does that feel?
3. Which major expenses do you expect in the next five years?
4. What would you do with the released capital?
5. Do you use the property yourself, and will that continue?
6. What does your accountant say about the consequences of a sale in your situation?
7. What does an estate agent say about the current value?
8. Which outcome would you regret most in five years?

The last question is often the most honest. If you can imagine regret in every scenario, you are missing information. If only one scenario leaves you with no regret, you already know your answer.

When it is better to wait

Do not decide straight after a difficult guest, a leak or a disappointing month. Do not decide at a peak of enthusiasm after an especially good summer either. Give yourself a few weeks, gather the figures and discuss them with people who know your situation.

Do not limit your questions to people with a stake in the answer. An estate agent earns from a sale, a manager from managing. That does not make their advice bad, but it is best to hear both stories.

YourDomi does not give official tax or legal advice. This article is general information: always discuss your own situation with your accountant.

What YourDomi can do for you

If you are thinking of staying but find the management heavy, we can take it over. We set prices daily based on market data, handle guest communication in several languages seven days a week and use our own cleaning team with a fixed checklist. The rental always stays in your name, so reviews and reputation remain yours. If you want to know what your property can earn, request a personal proposal.