We have looked at some of basics of becoming a holiday home caretaker, and here we consider some of the more in-depth issues.

Agreement with the owner

To set up and maintain a good working relationship with the owner, clarity of responsibility is required.  Both parties are then clear about chargeable services and what is not covered, which should all be documented in a contract.

Having said that the owner is the customer and best practice for the caretaker should always be to meet their requirements.

This can take the form of all ‘all-inclusive’ property management service where is everything is arranged at the owners request, or a menu of services which the owner can select as required.

Pricing

This can be defined on an hourly basis, or fixed call-out fee.  Again a pricing menu of costs will make it easy for the owner to understand the charges.

As a caretaker running multiple holiday lets where employing extra cleaning help is required, ensure that the hourly rate for the cleaner is factored into the chargeable amount, as well as other costs, namely cleaning bed linen and towels, and the cost of cleaning materials or a welcome pack.

Employing cleaners

With a portfolio of holiday properties to manage, extra cleaning help will be required during the summer.  Cleaners need to have the same qualities as the caretaker; they need to be reliable, trustworthy and responsible, as they will be given access to someone’s property and being asked to clean it to a good standard. 

See the HMRC website for more information about employing temporary staff.

Invoicing

The caretaker needs to come to an arrangement about payment with the owner.  One suggestion is to organise monthly invoices to the owner detailing the work a carried out in the previous month and the charge for each piece of work.

It is important to keep a record of all services provided, to avoid confusion and preserve a good working relationship with the owner.  It is also worth ensuring all chargeable work is ok’d with the owner before it is undertaken, ensuring no nasty surprises in the invoice.

Paying Tax

As you become the caretaker for a number of properties, income can grow quickly and you will need to think about self-assessment tax returns or forming a company, which most local authorities can help with.

If you are grossing more than £73,000 (correct as of Jan 2012) a year, you will need to register for VAT and start charging VAT to the owner.

Useful links:

VAT information on HM Revenue & Customs.

Starting a business – Business Link.

Starting a business – Startups.co.uk.